Interesting interview, Mr. Green’s responses seem thoughtful.
I personally do not like the PEOPLE credit rating system and think there are much better ways of doing credit screening – like meeting people face to face and reviewing their paystubs, etc. in PERSON. While it may not be as “efficient” sounding, once this credit rout is over it may look way more EFFICIENT.
The depersonalization of the credit process coupled with all the rating agency behavior has allowed LESS TRANSPARENCY. The people who believe in these systems believe they are great statistical measuring devises, but I think the facts argue against that overall.
Mark Green – CEO of FICO: