Michiel Van Lunsen

Session: Credit Portfolio Management with Alternative Data

Model Development & Landscape – Overview of the banking modelling ecosystem, defining what constitutes a model (business & regulatory), and comparing machine‑learning versus traditional approaches with respect to explainability, governance, and suitability for alternative data. Model Risk Management (MoRM) – How models are governed across their lifecycle, why MoRM is critical for regulatory compliance and responsible model use, and which validation dimensions apply (data, methodology, performance, stability). Alternative & Traditional Data for Credit Risk – Role of complementary (orthogonal) data sources, overview of traditional and alternative data (notably transactional and behavioural), and identification of gaps alternative data can address in existing models. Use Cases & Business Impact – Practical application of transactional data in credit risk and portfolio management, methods to assess incremental model value, and translation of improved insights into better risk outcomes and business decisions.