The history of credit score algorithms and how they became the lender standard

Credit risk assessment is largely a job for credit score algorithms, mass market models and systems that are relatively new in terms of the modern credit industry’s lifespan. Before computers and data science were fully adopted by the credit sector, lending decisions were made by credit managers employed by banks or department stores, who then collected information about each individual borrower. “Marketplace Tech” producer Daniel Shin takes a brief look at the history of credit score algorithms and how the industry eventually adopted those systems as the metric for risk assessment.