Dr Young-Ah Kim, a Lecturer from Essex Business School, was one of the recipients of our QSS Eastern ARC seed-corn funding awards this year. Her project, titled ‘Generalized additive modelling of the repayment performance of Korean borrowers’, aims to apply advanced econometric techniques to the modelling of loan defaults.
Young-Ah explained: “The data is from a sample of around 32,000 customers taking out personal loans from a Korea-based commercial bank, which has 87 branches distributed throughout South Korea.
“The focus of analysis is on the binary variable indicating default, defined as any sort of failure to meet the obligations of the loan during a time period up to a fixed reference date. The results are likely to be of interest to commercial banks, since they may be useful in the tailoring of credit scorecards.”
Young-Ah said the funding was very helpful in building research networks between Essex and UEA.
“This funding definitely enhances the benefits of collaboration, and is likely to lead to further cross-disciplinary and inter-university collaborations,” she added. The funding for this particular project has been mainly used for travel and meetings between the two universities in order to sort the data, facilitate discussion and to consolidate the findings of their research.
Whilst they are currently still analysing the data and discussing the results of analysis, Young-Ah hopes to submit a paper to an ABS listed journal this summer. There are also plans to develop a second project team between University of Essex and UEA based on the successful team work experience of this project. Keep up the good work and we hope to hear more soon!