University of Edinburgh Business School
Welcome Visit to CRC by Professor Harald Scheule
March 29, 2019

Professor Scheule of the University of Technology Sydney visited the Business School to present recent research.

As part of the CRC seminar series, Harald Scheule—currently Professor of Finance at the University of Technology Sydney—visited the Business School to present his recent research to staff, students, and practitioners. This research looked at using transactional (customer payments) data in mortgage risk modelling.

The research analysed the informativeness of non-mortgage bank payment transactions on mortgage default for a major retail bank, which found short-term interest coverage, income changes, home maintenance expenses, and cash withdrawals are strong predictors of future default. The use of transaction data improves model prediction allowing for earlier intervention that can assist consumers and lower bank losses.