From Payment Services Directive 2 (PSD2) to Credit Scoring: A Case Study on an Italian Banking Institution

Roberto Saia, Alessandro Giuliani, Livio Pompianu, Salvatore Carta

2021

Abstract

The Payments Systems Directive 2 (PSD2), recently issued by the European Union, allows the banks to share their customer data if they authorize the operation. On the one hand, this opportunity offers interesting perspectives to the financial operators, allowing them to evaluate the customers reliability (Credit Scoring) even in the absence of the canonical information typically used (e.g., age, current job, total incomes, or previous loans). On the other hand, the state-of-the-art approaches and strategies still train their Credit Scoring models using the canonical information. This scenario is further worsened by the scarcity of proper datasets needed for research purposes and the class imbalance between the reliable and unreliable cases, which biases the reliability of the classification models trained using this information. The proposed work is aimed at experimentally investigating the possibility of defining a Credit Scoring model based on the bank transactions of a customer, instead of using the canonical information, comparing the performance of the two models (canonical and transaction-based), and proposing an approach to improve the performance of the transactions-based model. The obtained results show the feasibility of a Credit Scoring model based only on banking transactions, and the possibility of improving its performance by introducing simple meta-features.

Paper Citation

in Harvard Style

Saia R., Giuliani A., Pompianu L. and Carta S. (2021). From Payment Services Directive 2 (PSD2) to Credit Scoring: A Case Study on an Italian Banking Institution. In Proceedings of the 13th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management (IC3K 2021) - Volume 1: KDIR; ISBN 978-989-758-533-3, SciTePress, pages 164-171. DOI: 10.5220/0010653200003064

in Bibtex Style

@conference{kdir21,
author={Roberto Saia and Alessandro Giuliani and Livio Pompianu and Salvatore Carta},
title={From Payment Services Directive 2 (PSD2) to Credit Scoring: A Case Study on an Italian Banking Institution},
booktitle={Proceedings of the 13th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management (IC3K 2021) - Volume 1: KDIR},
year={2021},
pages={164-171},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010653200003064},
isbn={978-989-758-533-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 13th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management (IC3K 2021) - Volume 1: KDIR
TI - From Payment Services Directive 2 (PSD2) to Credit Scoring: A Case Study on an Italian Banking Institution
SN - 978-989-758-533-3
AU - Saia R.
AU - Giuliani A.
AU - Pompianu L.
AU - Carta S.
PY - 2021
SP - 164
EP - 171
DO - 10.5220/0010653200003064
PB - SciTePress