Positive & Negative Select In Lending

Today I want to break down one of those concepts that gets tossed around in lending—positive and negative selection—but do it in a way that actually sticks. Because if you’re a marketer, a product person, or just someone who needs to explain this to a cross-functional team, you need a better mental model than “it’s a credit thing.”

So here’s the analogy I use: recruiting.

Hiring people is the cleanest way I know to make sense of selection bias in lending.

Let’s get into it.