ATLAS SkillTech University, Mumbai: Latest News, Events, Photos & Campus

“Explore the Latest in Credit Scoring: Innovations in Machine Learning & AI.” session by FINTREST - The Finance and Economic Club of ATLAS

Date: October 16, 2023 

The Finance and Economic Club of ATLAS, FINTREST recently organized an enlightening session on ‘Explore the Latest in Credit Scoring: Innovations in Machine Learning & AI.’ Mr. Manauar Jawed, Chief Credit Officer (CCO) at Aditya Birla Finance was the esteemed chief guest who explored the enthralling world of automation and innovation in credit score modeling.

The foundation of modern credit scoring lies in the ability to source diverse datasets in a world saturated with data. Data sourcing has been regarded as a wealth of information. Financial institutions today have easy access to a wide variety of data, including banking, financial, GSI, bureau, and alternative data, all of which are readily available in machine-readable formats. There are numerous Innovative tools available for model monitoring and maintenance which is not a small task. Modern credit assessment leverages innovative data visualization tools to monitor and maintain models. This dynamic approach ensures the accuracy and relevance of these models as they evolve with changing data. The significance of aligning underwriting and risk strategies with the output of credit scoring models was one core subject that Mr. Jawed emphasized. He said, “The scorecard’s role is not only to assess creditworthiness but also to guide business decisions, ensuring optimal risk management.” The session shed light on the implementation of advanced algorithms, including neural networks, XG Boost, and Random Forest, in credit scoring. These algorithms offer enhanced accuracy and efficiency, making them indispensable tools in the world of finance.

During his presentation, he gave insights about embracing new-age data sources and platforms and harnessing the power of advanced algorithms. 

Here are some details for the same: 

• ONDC, the Open Network for Digital Commerce, provides a unified platform that connects stakeholders in the digital commerce value chain. Beyond connectivity, it presents significant lending opportunities for financial institutions.
• The Open Credit Enablement Network (OCEN) aims to simplify and democratize credit access for Micro, Small and Medium Enterprises (MSMEs). It offers a streamlined approach to credit assessments, benefiting both businesses and lenders.
• India Stack enables the sharing of consent-based data, such as banking, GST and mutual fund data. This wealth of data facilitates a comprehensive assessment of creditworthiness. 
• Beyond the established data sources, unconventional data, such as customer behavior and geospatial data, are increasingly being incorporated into credit scoring models. These sources provide a deeper understanding of an applicant’s financial standing.
• Neural networks are widely used in fraud modeling and customer credit scoring, optimizing risk assessment in today’s complex financial landscape. 
• XG Boost corrects errors from previous decision trees, resulting in more accurate and reliable credit scoring models. 
• Random Forest algorithms reduce variance, providing more stable and accurate credit assessments, critical for responsible lending.

He mentioned that he believes in exploring advanced scorecards as they offer a diverse array of scorecards, each with its unique purpose. Application scorecards rely on demographic data to assess creditworthiness. These are especially useful for understanding the financial capability of first-time borrowers. Bureau-based scorecards delve into trade line-level performance, utilization, inquiries and more to provide a comprehensive credit assessment. Innovative SME scoring models leverage bank data to assess the creditworthiness of small and medium-sized businesses. Alternate data scorecards draw from non-traditional sources, offering a fresh perspective on an applicant’s financial situation. Behavioral scorecards take into account regulatory data, financial and banking data, providing a holistic view of an individual’s creditworthiness. GST scorecards leverage historical GST data to assess an applicant’s financial stability and tax compliance.

The session also introduced effective strategies around scorecard implementation that exclude bottom deciles and offer standard loan amounts to top deciles without underwriting provides several advantages, including best-in-class TAT to customers and cost savings in loan processing, light touch underwriting for top decile customers streamlines the lending process, reduces risk, and enhances operational efficiency.

He underlined the importance of evolving with data through data visualization tools. Credit scoring models need to adapt to demographic changes to remain effective and reliable. Visualisations offer insights into model performance, ensuring that the scorecard remains a dependable tool for decision-making.

The session was a deep dive into the dynamic and ever-evolving world of credit scoring. As we embrace the latest in machine learning and AI, it’s clear that innovation and data-driven insights are shaping the future of finance.

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Aarti Sheth Cooper, the visionary founder of The Idea Studio, recently graced a D2C Dynamo Guest Session at ATLAS

Date: October 16, 2023

At ATLAS, a D2C Dynamo Guest Session was conducted by Aarti Sheth Cooper, the visionary founder of The Idea Studio. She started her session with an engaging exercise, challenging students to identify brands solely from their iconic slogans. This exercise underscored the power of concise and memorable messaging, revealing how a few well-chosen words can create a lasting connection with consumers. Further, she explained that the journey of brand-building is a multi-faceted process. It begins with research, continues with marketing and competitor analysis, brand landscaping, moodboarding, initial design, content strategy, and ends with a comprehensive content plan and a thorough brand visual identity. Each step in this process contributes to the creation of a brand that speaks to its audience in a meaningful way.

One of the session’s highlights was the exploration of verbal brand identity. Aarti delved into aspects like brand names, values, archetypes, tone of voice and brand stories. She emphasized that a brand’s name should evoke emotions, build trust and facilitate recall. Drawing examples from the world of dog food, she demonstrated how different brand names suggest varying emotions and associations.

Brand stories, as Aarti elucidated, are pivotal in establishing a personal and emotional connection with customers. She shared the heart-warming tale of a grandmother in Lucknow who turned her small home-based pickle business into a renowned company. This story not only exemplified the power of storytelling but also showcased how a brand’s journey can be its most valuable asset.

Another important subject of debate was the opportunities and challenges of communication in the digital age. Aarti emphasized the importance of using clear, consistent, and focused messages to build a loyal consumer base. The Donato case study served as an excellent example of the value of cultivating customer loyalty and managing oversaturated marketplaces. Communication challenges and opportunities in the digital age were another crucial topic of discussion. Aarti emphasized the need for clear, consistent and targeted messaging to create an engaged community of customers. The Donato case study illustrated the importance of navigating oversaturated markets and building customer loyalty.

Brand values, positioning, archetypes, word clouds, buzzwords and voice charts were all dissected to unveil the inner workings of a brand’s identity. Aarti showcased real-world examples like TBLC Paan and Safari bags to drive home the importance of these concepts. 

To conclude the session, Aarti shared her experiences working on Shahid Kapoor’s brand SKULT, providing valuable insights into celebrity brand management. In the realm of branding, Aarti Sheth Cooper’s insights have transformed imagination into a tangible reality. Her expertise and passion have ignited a spark in our students, inspiring them to craft unique brand voices. 

“Dos and Don’ts of Startup Fundraising,” by Lipi Panchmia At ATLAS 

Date: October 16, 2023

Lipi Panchmia, a Senior Associate at Roots Ventures, shared a treasure trove of wisdom and insights with the students in Saturday Startup School at ATLAS. Her keynote presentation, titled “Dos and Don’ts of Startup Fundraising,” not only demystified the complex world of startup fundraising but also left our audience inspired and empowered. She shed some light on some fundamental questions during her presentation. 

She believes that knowing why and when to raise funds is the first step to a successful fundraising journey and there are many reasons to raise funds for startups as the startups themselves. They may need funds to build a team, develop a product, market and sell the product, expand into new markets, make acquisitions, or simply achieve profitability. For a startup to do well, understanding what investors seek in a startup is crucial. In her opinion, investors looked for a potent combination of a robust team, a sizable addressable market and a clear path to profitability. The potential for innovation and disruption is also highly valued. In order to attract investors, aspiring entrepreneurs should concentrate on these factors.

Panchmia made it clear that startups have several options when it comes to funding, such as equity, debt and venture debt. By selecting the right type of funding for your venture, you can maintain control over your business and ensure long-term sustainability. During her presentation, she mentioned a step-by-step fundraising process that says one should prepare a compelling pitch deck, network with potential investors and master the art of negotiating terms with investors to raise good capital. For students aspiring to raise funds for their startups, Panchmia has a set of invaluable tips that include being proactive in your school/college community, creating high-quality content to showcase your expertise, seeking internships at startups to gain practical experience, leveraging family business connections if possible and investing in online courses to enhance your knowledge. When looking for investors, Panchmia underlined the need to have a solid, enthusiastic workforce and a clear route to profitability. She advised students to attend startup events, attend early-stage networking events, and always be ready with a pitch deck and responses to frequently asked questions.

Overall, Lipi Panchmia’s presentation was a comprehensive guide to the startup fundraising process. Her valuable insights, combined with the interactive nature of the session, left students better equipped to navigate the challenging but exciting world of startup fundraising.