Risk Scoring: Deployment of Estimation of Probability of Default on New Applicant

The probability of default is a metric that lenders use to assess risk on customers, group them into similar risk bands, and determine what interest rate to charge them. A lender will use probability of default to calculate expected return and loss at the individual and portfolio level. Here we apply the model trained in the training workflow to estimate the delinquency risk in the next two years for the new applicant.