Consumer finance: challenges for operational research

Consumer finance has become one of the most important areas of banking, both because of the amount of money being lent and the impact of such credit on global economy and the realisation that the credit crunch of 2008 was partly due to incorrect modelling of the risks in such lending. This paper reviews the development of credit scoring—the way of assessing risk in consumer finance—and what is meant by a credit score. It then outlines 10 challenges for Operational Research to support modelling in consumer finance. Some of these involve developing more robust risk assessment systems, whereas others are to expand the use of such modelling to deal with the current objectives of lenders and the new decisions they have to make in consumer finance. <br/

Operations research in consumer finance: challenges for operational research

Consumer finance has become one of the most important areas of banking both because of the amount of money being lent and the impact of such credit on the global economy and the realisation that the credit crunch of 2008 was partly due to incorrect modelling of the risks in such lending. This paper reviews the development of credit scoring,-the way of assessing risk in consumer finance- and what is meant by a credit score. It then outlines ten challenges for Operational Research to support modelling in consumer finance. Some of these are to developing more robust risk assessment systems while others are to expand the use of such modelling to deal with the current objectives of lenders and the new decisions they have to make in consumer financ

New Directions in Consumer Behaviour Research

Consumer behaviour remains an evolving and fascinating area of research. In this article we highlight some of the current work by Canadian researchers in the areas of enhancing both the quality and application of consumer analysis. The work described below touches upon areas in which not just economic theory and methods, but also the policy process can be improved. The working papers cited here were all presented as part of the principal paper session, “What’s Going on in Consumer Behaviour?†held at the joint meeting of the Canadian Agricultural Economics Society and the Northeastern Agricultural and Resource Economics Association in Halifax, Nova Scotia in June 2004.Food Consumption/Nutrition/Food Safety, Marketing, Research Methods/ Statistical Methods,

Can consumer research panels form an effective part of the cancer research community?

The North Trent Cancer Research Network’s Consumer Research Panel (NTCRN CRP) was established in December 2001 by the Academic Unit of Supportive Care at the University of Sheffield. In three years, the CRP has succeeded in nurturing a climate of sustainable consumer involvement within the NTCRN and this has become embedded in the culture of the network. Furthermore, the panel have championed a sustainable development of consumer involvement in health and social care research by testing new ground and forging a new way of working between health professionals and patients and carers. The CRP model has been held up as an example to other cancer networks, with new panels being set up around the country to emulate its success. This paper describes the Sheffield model of patient and public involvement and using the eight key principles of successful consumer involvement in research, identified in a recent paper by Telford et al (2003), provides a useful framework for analysing the work of the Panel. This demonstrates how consumers and professionals can inform each other to work constructively and synergistically to achieve impressive research results. The need for measurable outcomes to assess the impact and effect of consumer involvement is finally explored

Consumer credit in comparative perspective

We review the literature in sociology and related fields on the fast global growth of consumer credit and debt and the possible explanations for this expansion. We describe the ways people interact with the strongly segmented consumer credit system around the world—more specifically, the way they access credit and the way they are held accountable for their debt. We then report on research on two areas in which consumer credit is consequential: its effects on social relations and on physical and mental health. Throughout the article, we point out national variations and discuss explanations for these differences. We conclude with a brief discussion of the future tasks and challenges of comparative research on consumer credit.Accepted manuscrip