Capital Ones Statistical Problems

Our top ten list

August, 2006

Bill Kahn
Chief Scoring Officer
bill.kahn@capitalone.com

Overview
What Capital One Does
How We Do It
What We Need
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Confidential
02/14/15

What Capital One Does

Diversified consumer finance

Geograph
y

US
Canada
UK
Spain
Italy

Confidential
02/14/15

Product
s

Card
Auto
Medical
Home
IL
SB
Banking

Lifestage
Acquisition
Underwriting
Account
management
Collections

How We Do It : Quantitative Continuous Learning

QCL
Clean
historical
data

Assign
90% to
optimal
Model with
history and
treatment

Brainstorm
products and
treatments

Collect
timely
data

Confidential
02/14/15

Customer
value
measures

Implement
without
blunder
4

Optimal DOE
on random
sample

What We Need (Statistically speaking)

10: Rejection Inference
9: Valuation
8: Complex models
7. Adverse Action
6: Database design
5. Advanced curve fitting
4: Loss Function Optimization
3: DOE
2: Secure data sharing
1: Great people
Confidential
02/14/15

Summary
Capital loans money
To individuals who competitors misprice
And we could make good use of more
advanced statistical technology
10:Rejection Inference
9:Valuation
8:Complex models
7:Adverse Action
6:Database design
5:Advanced curve fitting
4:Loss function optimization
3:DOE
2:Secure data sharing
1:Great people

Confidential
02/14/15

Q&A

Confidential
02/14/15