IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v43y2011i3p650-665.html
   My bibliography  Save this article

Elite Knowledges: Framing Risk and the Geographies of Credit

Author

Listed:
  • Thomas Wainwright

    (Small Business Research Centre, Kingston University, Kingston Hill, Kingston upon Thames, Surrey KT2 7LB, England)

Abstract

This paper examines the history of credit scoring in Britain, and how this technology was imported from the US and adapted by the British retail banking sector. It seeks to highlight the elites who develop the social codes embedded within credit scoring software, to offer insight into the complex techno-economic networks that produce the geographies of financial inclusion, exclusion, and differential risk pricing. It is argued that the scientific status of these systems is questionable, due to the social interactions involved within the statistical modelling. Finally, the paper suggests that the spaces of credit are fluid, based upon the frequent social recalibrations of these models.

Suggested Citation

  • Thomas Wainwright, 2011. "Elite Knowledges: Framing Risk and the Geographies of Credit," Environment and Planning A, , vol. 43(3), pages 650-665, March.
    • Handle: RePEc:sae:envira:v:43:y:2011:i:3:p:650-665
    DOI: 10.1068/a43331
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a43331
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a43331?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Stiglitz, Joseph E & Weiss, Andrew, 1992. "Asymmetric Information in Credit Markets and Its Implications for Macro-economics," Oxford Economic Papers, Oxford University Press, vol. 44(4), pages 694-724, October.
    2. Andrew Leyshon & Dawn Burton & David Knights & Catrina Alferoff & Paola Signoretta, 2004. "Towards an Ecology of Retail Financial Services: Understanding the Persistence of Door-to-Door Credit and Insurance Providers," Environment and Planning A, , vol. 36(4), pages 625-645, April.
    3. D. J. Hand & W. E. Henley, 1997. "Statistical Classification Methods in Consumer Credit Scoring: a Review," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 160(3), pages 523-541, September.
    4. Eric Rosenberg & Alan Gleit, 1994. "Quantitative Methods in Credit Management: A Survey," Operations Research, INFORMS, vol. 42(4), pages 589-613, August.
    5. Thomas, Lyn C., 2000. "A survey of credit and behavioural scoring: forecasting financial risk of lending to consumers," International Journal of Forecasting, Elsevier, vol. 16(2), pages 149-172.
    6. Munnell, Alicia H. & Geoffrey M. B. Tootell & Lynn E. Browne & James McEneaney, 1996. "Mortgage Lending in Boston: Interpreting HMDA Data," American Economic Review, American Economic Association, vol. 86(1), pages 25-53, March.
    7. Allen Berger, 2006. "Potential Competitive Effects of Basel II on Banks in SME Credit Markets in the United States," Journal of Financial Services Research, Springer;Western Finance Association, vol. 29(1), pages 5-36, February.
    8. Jeacle, Ingrid & Walsh, Eamonn J., 2002. "From moral evaluation to rationalization: accounting and the shifting technologies of credit," Accounting, Organizations and Society, Elsevier, vol. 27(8), pages 737-761, November.
    9. Gary A. Dymski, 2010. "Why the subprime crisis is different: a Minskyian approach," Cambridge Journal of Economics, Oxford University Press, vol. 34(2), pages 239-255, March.
    10. Knights, D. & Vurdubakis, T., 1993. "Calculations of risk: Towards an understanding of insurance as a moral and political technology," Accounting, Organizations and Society, Elsevier, vol. 18(7-8), pages 729-764.
    11. Peter Folkman & Julie Froud & Sukhdev Johal & Karel Williams, 2007. "Working for themselves? Capital market intermediaries and present day capitalism," Business History, Taylor & Francis Journals, vol. 49(4), pages 552-572.
    12. Mackenzie, Donald, 2006. "Is Economics Performative? Option Theory and the Construction of Derivatives Markets," Journal of the History of Economic Thought, Cambridge University Press, vol. 28(1), pages 29-55, March.
    13. David Durand, 1941. "Risk Elements in Consumer Instalment Financing," NBER Books, National Bureau of Economic Research, Inc, number dura41-1, March.
    14. Millo, Yuval & MacKenzie, Donald, 2009. "The usefulness of inaccurate models: Towards an understanding of the emergence of financial risk management," Accounting, Organizations and Society, Elsevier, vol. 34(5), pages 638-653, July.
    15. David Durand, 1941. "Risk Elements in Consumer Instalment Financing, Technical Edition," NBER Books, National Bureau of Economic Research, Inc, number dura41-2, March.
    16. Fabian Muniesa & Yuval Millo & Michel Callon, 2007. "An introduction to market devices," Post-Print halshs-00177928, HAL.
    17. L C Thomas & R W Oliver & D J Hand, 2005. "A survey of the issues in consumer credit modelling research," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(9), pages 1006-1015, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Crook, Jonathan N. & Edelman, David B. & Thomas, Lyn C., 2007. "Recent developments in consumer credit risk assessment," European Journal of Operational Research, Elsevier, vol. 183(3), pages 1447-1465, December.
    2. Fernandes, Guilherme Barreto & Artes, Rinaldo, 2016. "Spatial dependence in credit risk and its improvement in credit scoring," European Journal of Operational Research, Elsevier, vol. 249(2), pages 517-524.
    3. Hussein A. Abdou & John Pointon, 2011. "Credit Scoring, Statistical Techniques And Evaluation Criteria: A Review Of The Literature," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 18(2-3), pages 59-88, April.
    4. Rais Ahmad Itoo & A. Selvarasu & José António Filipe, 2015. "Loan Products and Credit Scoring by Commercial Banks (India)," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 5(1), pages 851-851.
    5. Dawn Burton, 2012. "Credit Scoring, Risk, and Consumer Lendingscapes in Emerging Markets," Environment and Planning A, , vol. 44(1), pages 111-124, January.
    6. Fernandes, Guilherme Barreto & Artes , Rinaldo, 2013. "Spatial correlation in credit risk and its improvement in credit scoring," Insper Working Papers wpe_321, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    7. Crone, Sven F. & Finlay, Steven, 2012. "Instance sampling in credit scoring: An empirical study of sample size and balancing," International Journal of Forecasting, Elsevier, vol. 28(1), pages 224-238.
    8. Chernonog, Tatyana & Avinadav, Tal, 2016. "A two-state partially observable Markov decision process with three actionsAuthor-Name: Ben-Zvi, Tal," European Journal of Operational Research, Elsevier, vol. 254(3), pages 957-967.
    9. Przemys{l}aw Biecek & Marcin Chlebus & Janusz Gajda & Alicja Gosiewska & Anna Kozak & Dominik Ogonowski & Jakub Sztachelski & Piotr Wojewnik, 2021. "Enabling Machine Learning Algorithms for Credit Scoring -- Explainable Artificial Intelligence (XAI) methods for clear understanding complex predictive models," Papers 2104.06735, arXiv.org.
    10. Büşra Alma Çallı & Erman Coşkun, 2021. "A Longitudinal Systematic Review of Credit Risk Assessment and Credit Default Predictors," SAGE Open, , vol. 11(4), pages 21582440211, November.
    11. Andreea Costea, 2017. "A Quantitative Approach to Credit Risk Management in the Underwriting Process for the Retail Portfolio," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(63), pages 157-186, March.
    12. Zhixin Liu & Ping He & Bo Chen, 2019. "A Markov decision model for consumer term-loan collections," Review of Quantitative Finance and Accounting, Springer, vol. 52(4), pages 1043-1064, May.
    13. Hand, David J., 2009. "Mining the past to determine the future: Problems and possibilities," International Journal of Forecasting, Elsevier, vol. 25(3), pages 441-451, July.
    14. Naveed Chehrazi & Thomas A. Weber, 2015. "Dynamic Valuation of Delinquent Credit-Card Accounts," Management Science, INFORMS, vol. 61(12), pages 3077-3096, December.
    15. Robert Till & David Hand, 2003. "Behavioural models of credit card usage," Journal of Applied Statistics, Taylor & Francis Journals, vol. 30(10), pages 1201-1220.
    16. Elena Ivona DUMITRESCU & Sullivan HUE & Christophe HURLIN & Sessi TOKPAVI, 2020. "Machine Learning or Econometrics for Credit Scoring: Let’s Get the Best of Both Worlds," LEO Working Papers / DR LEO 2839, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    17. Doruk Şen & Cem Çağrı Dönmez & Umman Mahir Yıldırım, 0. "A Hybrid Bi-level Metaheuristic for Credit Scoring," Information Systems Frontiers, Springer, vol. 0, pages 1-11.
    18. G Verstraeten & D Van den Poel, 2005. "The impact of sample bias on consumer credit scoring performance and profitability," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(8), pages 981-992, August.
    19. Abdelkader Derbali & Lamia Jamel, 2019. "Dependence of Default Probability and Recovery Rate in Structural Credit Risk Models: Case of Greek Banks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 711-733, June.
    20. Kenneth P. Brevoort & Robert B. Avery & Glenn B. Canner, 2013. "Credit Where None Is Due? Authorized-User Account Status and Piggybacking Credit," Journal of Consumer Affairs, Wiley Blackwell, vol. 47(3), pages 518-547, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:43:y:2011:i:3:p:650-665. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.