Data Science for the FinTech industry





Emotion underlies nearly everything surrounding financial markets and financial decision-making.

What other variable can explain so much about why people spend and invest money the way they do?  In spite of this, we often rely on false assumptions about finance. People’s thinking about their financial lives is often flawed–they overvalue how much they will earn and undervalue how debt will impact their lives.  Professional investors, similarly, respond to market trends that are non-sustainable and non-representative of broader themes.

Emotion is a useful advantage in decision-making for those that embrace it.  That is why Dave Herman designed the financial personality portfolio working at PayOff Inc as a key feature in the algorithm that decides which loan applications are funded.  This approach is not only sensible, it produced an industry leading credit risk model, with the highest percentage of applicants funded with the lowest default rate in the lending industry.  PhD Insight translates these findings into broad approaches for understanding financial decisions–including how to incentivize saving behavior, how to inspire people to pay back loans, and how to predict the hidden forces driving behavior.

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