Welcome to the Paragon resources hub
Here you’ll find a collection of useful materials on the techniques and considerations when it comes to developing, implementing, using and managing credit risk models, as well as the latest Paragon opinion and industry developments.
Modeller Case Study with Datacuity
It is always interesting to hear directly from our partners and clients how they are using our software solutions and the benefits that they gain. This case study explores how Datacuity, an analytics consultancy based in South Africa, leveraged Paragon Business Solutions' Modeller software to develop a robust Bureau Application Scorecard for a client in Sub-Saharan Africa. We recently sat down with Cobus Bekker from Datacuity to gain insights into their process and the benefits experienced using Modeller for this project.
The EU AI Act: Implications for Lenders and Credit Scoring Models
The EU Act for AI, also known as the AI Act, is a comprehensive regulatory framework proposed by the European Union to ensure the safe and ethical use of artificial intelligence (AI). Credit scoring models are likely to be classified as high-risk due to their significant impact on individuals’ access to financial services and economic opportunities. This classification brings about several regulatory requirements within the Act. These high-risk AI systems must meet specific criteria and adhere to strict regulatory standards.
Unlocking the Power of Reports in Credit Risk Model Development
Credit risk models, often referred to as scorecards and scores, are the linchpin of financial stability for both individuals and businesses. These models guide crucial decisions about lending, capital allocation, credit loss forecasting, and strategic planning for banks and lenders. Given their profound impact, credit risk models are under increasing scrutiny and regulation, with a growing emphasis on Model Risk Governance. This discipline ensures models are developed, utilized, and managed with a comprehensive understanding and without unintended consequences.
Paragon releases Modeller 6.0
We are very pleased to announce that our latest major release of Modeller, version 6.0, was recently made available to all new and existing users. A new Model Explainer and reporting suite is included in this latest release. This enables users to run suites of model-agnostic reports on multiple models and/or populations simultaneously, driving efficiencies in the production and interpretation of reports.
Evolving Credit Scoring: Harnessing the Power of Open Banking Data
In the world of lending, there's a notable shift happening in both consumer needs (greater need for credit, evolving working practices such as gig working) and most relevantly to lenders with the introduction of Open Banking data. It's changing how lenders evaluate both creditworthiness and affordability, providing a more detailed view of a person's financial habits as well as opportunities to remove friction and automate decisioning. In this article, we'll explore the practical aspects and real-life examples of how Open Banking is reshaping credit scoring.
Streamlined Credit Risk Modelling: How Modeller Empowers In-House Teams With Enhanced Governance And Compliance
It is imperative for companies to have a robust and effective credit risk modelling process in place. Credit risk models (and many other model types) must pass regulatory scrutiny and internal audit requirements, all with the aim of ensuring that the models developed will perform as required and to minimise any potential model risks. The accuracy and reliability of this process are crucial for financial institutions, as their credit risk models directly impact their lending decisions and overall profitability.
Paragon's Modeller: Three Decades of Excellence in Credit Scoring Models
Paragon's Modeller has evolved over three decades, continuously improved and refined into a trusted and valued tool for credit risk analysts and modellers. With a focus on simplicity and ease of use, Modeller embodies a commitment to excellence, with best-in-class processes and methodologies to deliver best-in-class predictive models.
How Open Banking can help meet the challenges faced in Originations
Open Banking data benefits applicants in a number of ways, not only making it easier and faster to obtain credit but also enabling greater choice and fairer access to credit.
Using a decision engine with lending platforms makes the integration of Open Banking data straightforward, with minimal technical integration, minimal risk, and minimal outlay.
Model Building: The Power of Process Standardisation with Paragon's Modeller
Process standardisation is the key to efficiency whilst reducing the risk of errors or re-work. It involves establishing clear procedures and best practices for specific tasks and processes. In the context of model building, it means defining a consistent methodology for data preparation, model design, feature selection, model training, model validation, and deployment.
The Top 10 Questions to Ask When Choosing Credit Risk Modelling Software
Selecting the right credit risk modelling software is a critical decision for financial institutions seeking to develop and deploy credit risk models efficiently and effectively, whilst complying with guidelines and regulations. To assist you in this crucial process, we've distilled the most important considerations into the top 10 questions you should ask when evaluating credit risk modelling software.
The Paragon Best Paper Award 2023
We had great pleasure in sponsoring the Gala dinner at the recent 18th Credit Scoring and Control Conference held in Edinburgh and awarding the Paragon Best Paper Award. The biannual conference is organized by the Credit Research Centre at the University of Edinburgh and is the world's premier conference for credit scoring and credit risk related topics.
Building a Robust Model Risk Management Culture: Overcoming Common Challenges
Model Risk Management (MRM) plays a pivotal role in safeguarding an organization's decision-making processes and ensuring the reliability of financial models. However, many businesses face substantial challenges in establishing a strong and adequate MRM culture. Recently, at the Credit Scoring and Credit Control conference in Edinburgh, Dan Hensel from 4most and I discussed the vital aspects of Model Risk Management and how to foster a robust MRM culture within an organization. In this article, I'll summarize our insights and share common hurdles organizations encounter on this journey.
Paragon releases Modeller 5.0
Our latest release of Modeller, version 5.0, is now available to all new and existing users. We are really excited about the advances brought to our users. The major addition is the “Open source node”. This enables users to run Python scripts and packages directly within Modeller, enabling greater flexibility, efficiencies and ease of use along with the vast amount of choice and data science capabilities that Python offers.
Blame the Process, Not the Person: Enhancing Model Risk Management in Banks
“Don’t blame the person, blame the process.” I always remember hearing this said by the leader of the first analytics team I worked for in the late 1990s. Looking back now, this manager was instilling better model risk management before the discipline had been defined. Errors, mistakes and oversights can happen throughout the model lifecycle stages, but with strong process can be reduced and minimised. Ultimately this is the backbone of better Model Risk Management (MRM) practices.
Paragon: the credit expert’s choice
“We get value from Modeller due to its efficiency, time saving and auditing features.”
CARLIEN KRUGER, SENIOR MODELLER, WESTPAC
Find out why credit risk analytics experts choose Paragon software.
Our software
Whether you’re building and deploying models, automating decisions or managing model risk and governance, Paragon’s software comes with our no compromise, valued engineering built in.