Finreglab Inc

THE ORGANIZATION'S MISSION IS TO TEST NEW TECHNOLOGIES AND DATA TO INFORM PUBLIC POLICY AND DRIVE THE FINANCIAL SECTOR TOWARD A RESPONSIBLE AND INCLUSIVE FINANCIAL MARKETPLACE.

EXPLANABILITY AND FAIRNESS IN MACHINE LEARNING: THE ORGANIZATION IS CONDUCTING RESEARCH ON THE CAPABILITIES OF MODEL DIAGNOSTIC TOOLS PROVIDED BY SEVERAL TECHNOLOGY COMPANIES THAT IS DESIGNED TO IMPROVE THE EXPLAINABILITY OF MACHINE LEARNING UNDERWRITING MODELS. THIS INVESTIGATION WILL FOCUS ON THE ABILITY OF THE MODEL DIAGNOSTIC TOOLS TO DETECT MODEL PERFORMANCE DETERIORATION FOR VARIOUS FORMS OF MACHINE LEARNING MODELS, TO IDENTIFY DISPARATE IMPACT AND HELP LENDERS MITIGATE THE UNDERLYING CAUSE, AND TO RELIABLY IDENTIFY THE PRIMARY BASES OF INDIVIDUAL UNDERWRITING DECISIONS.

PROGRAM RESEARCH: THE CATEGORY INCLUDES OTHER WORK THAT ADVANCES THE ORGANIZATION'S MISSION BUT IS NOT FUNDED AS PART OF A LARGE DEDICATED PROJECT.

CASH-FLOW DATA FOR ASSESSING DISTRESSED BORROWERS: THE ORGANIZATION IS CONDUCTING RESEARCH RELATING TO PILOT INITIATIVES BY THE NATIONAL FOUNDATION FOR CREDIT COUNSELING TO HELP CONSUMERS WHO ARE IN FINANCIAL DISTRESS COMING OUT OF THE COVID-19 PANDEMIC PAY DOWN THEIR UNSECURED DEBT AND STABILIZE THEIR FINANCES. THE PILOTS INCLUDE USING BANK ACCOUNT DATA TO ASSESS WHAT REPAYMENT PLANS ARE LIKELY TO WORK FOR PARTICULAR GROUPS OF CONSUMERS AND TO MONITOR THEIR FINANCES FOR SECONDARY SHOCKS, AS WELL AS OTHER PROCESS AND PLATFORM IMPROVEMENTS.

BORROWER RISK ASSESSMENT WITH CASH FLOW DATA: THE ORGANIZATION EXAMINED DATA FROM PARTICIPATING COMPANIES THAT PROVIDE VARIOUS CREDIT PRODUCTS TO CONSUMERS AND BUSINESSES USING UNDERWRITING MODELS THAT RELY ON CASH-FLOW DATA. THE INFORMATION IS USED TO ASSESS THE PREDICTIVENESS OF THE CASH FLOW SCORES AND OTHER METRICS, THE EXTENT TO WHICH THE COMPANIES EXTEND CREDIT TO UNDERSERVED POPULATIONS, AND WHETHER THE USE OF THE DATA CREATED POTENTIAL FAIR LENDING RISKS. WHERE POSSIBLE, WE ALSO COMPARED THE CASH-FLOW DATA TO TRADITIONAL CREDIT SCORES AND VARIABLES. THE ORGANIZATION'S WORK CONCLUDED THE PROJECT BY PUBLISHING A MARKET CONTEXT & POLICY ANALYSIS REPORT AS WELL AS CONDUCTING EXTENSIVE STAKEHOLDER ENGAGEMENT CONCERNING ADDITIONAL RESEARCH, MARKET, AND POLICY ACTIVITY BUILDING ON FINREGLAB'S FINDINGS.