No. 721 - Artificial intelligence in credit scoring: an analysis of some experiences in the Italian financial system

Questioni di Economia e Finanza (Occasional papers)
by Emilia Bonaccorsi di Patti, Filippo Calabresi, Biagio De Varti, Fabrizio Federico, Massimiliano Affinito, Marco Antolini, Francesco Lorizzo, Sabina Marchetti, Ilaria Masiani, Mirko Moscatelli, Francesco Privitera and Giovanni Rinna
October 2022
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The work presents a discussion of theoretical issues and of the regulatory and institutional context for the application of Artificial Intelligence and Machine Learning (AI-ML) to credit scoring. The paper also describes the results of a survey of a selection of Italian financial intermediaries on their experience in adopting such models.

The use of AI-ML models in credit scoring is still limited in Italy, though growing. They are currently used to support decision-making processes, the ultimate responsibility for which rests with the analysts. The financial intermediaries surveyed confirmed that these models perform better than traditional models. The evidence from the survey nevertheless indicates that intermediaries should strengthen their analyses to ensure the absence of potential biases, including those possibly leading to discriminatory outcomes, as well as their governance mechanisms, especially in cases in which they outsource the development of their AI-ML models.

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  1. 12 October 2022
    No. 721 - Artificial intelligence in credit scoring: an analysis of some experiences in the Italian financial system
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