Nearly all consumers and businesses are directly impacted by the credit risk models used in today’s highly-regulated financial services industry. Logistic regression models have long been the industry standard. However, their efficacy is up for debate given recent advances in artificial intelligence and machine learning, and evolving U.S. financial regulations.
NeuroDecision® Technology, a modeling technique patented by Equifax, complies with existing U.S. regulations. It provides users with reason codes for disclosure to consumers in the event credit is denied or other adverse action is taken.