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Podcast: How to Lend Money to Strangers
Episode: Aiming when you can't see the target, with Clare McCaffery (DirectID) and Jacobus Eksteen (Matogen AI)
Description: When you want a model, you typically start with a target variable in mind. But sometimes that's not possible. Perhaps you're entering a new market or expanding into a new niche, you could start lending on a small scale and wait to see what happens. We used to call that a deep risk test, often somewhat euphemistically when a cohort was accidentally approved through a gap in the system. But even if you're happy to take a chance, that takes time - there's no way to shortcut a 12-month outcome. Enter the u-score...