Advances in technology have facilitated the widespread use of credit scoring by financial institutions in making their lending decisions.Credit scoring can be defined broadly as the use of historical data and statistical techniques to rank the attractiveness of potential borrowers and guide lending decisions.

1. Give 2 credit risk scoring models and their main differences.

2. In what ways might this practice enhance the efficiency of the financial system?

Remember to cite your sources (academic paper, textbooks, news article, video link etc.) that you use in the discussion post.