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This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

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Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

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Featured Pathways

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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Plans & Membership

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Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

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Moody's Machine Learning Case Study

Moody's Machine Learning Case Study

Carlos Salas

Portfolio Manager and Data Scientist

Let’s see how a credit rating agency used machine learning model training. Join Carlos Salas as he explores how data science and machine learning can be used in finance to improve credit scoring tools.

Let’s see how a credit rating agency used machine learning model training. Join Carlos Salas as he explores how data science and machine learning can be used in finance to improve credit scoring tools.

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Moody's Machine Learning Case Study

5 mins 12 secs

Key learning objectives:

  • Understand how Moody’s use machine learning

Overview:

Moody’s is a credit rating agency who compared their internal parametric model against several machine learning models to assess the credit risk of small and medium-sized corporate borrowers. This assessment yielded surprising results, with the machine learning models outperforming Moody’s model.

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Summary

How has Moody’s used data science?

Moody’s is a credit rating agency who compared their internal parametric model against several machine learning models to assess the credit risk of small and medium-sized corporate borrowers. Moody’s proprietary model uses a traditional parametric general additive framework (GAM). The alternative machine learning models used were random forest, boosting, and neural networks. Two different datasets were used for the comparison study. The first dataset utilises only firm information and financial ratios, while the second dataset adds additional data to the first such as behavioural information including credit line usage, loan payment behaviour, and other alternative data.

Generalisation results were impressive with machine learning models outperforming Moody’s proprietary model from 2 to 3% using both datasets. There is also an 8-10% jump in accuracy when adding loan behavioural information.

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Carlos Salas

Carlos Salas

Carlos Salas is a professional investor passionate about the lifelong development of an investment process that blends man and machine. Over the last 15 years, he has worked in investment roles for firms such as Santander AM, BNP Paribas, Jefferies, and LCAM. He is currently pursuing three careers simultaneously - as an investment manager, consultant and lecturer.

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