Journal of the Operational Research Society

, Volume 61, Issue 1, pp 41–52

Consumer finance: challenges for operational research

Special Issue Paper

DOI: 10.1057/jors.2009.104

Cite this article as:
Thomas, L. J Oper Res Soc (2010) 61: 41. doi:10.1057/jors.2009.104


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.


Consumer finance credit scoring risk-based pricing classification techniques customer lifetime value 

Copyright information

© Palgrave Macmillan 2009

Authors and Affiliations

  1. 1.School of Management, University of SouthamptonSouthamptonUK

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