The Timeless Value of Character in Credit Underwriting

"Character is more valuable than wealth."

That's what former BBH Partner John Crosby Brown wrote back in 1909 in his book, A Hundred Years of Merchant Banking. Over a century later, in today's turbulent markets, his words have continued to age well.

I recently sat down to revisit the fundamentals of credit underwriting for our latest Owner to Owner piece. The bottom line: Character still counts more than almost any other metric.

When markets get jittery, it's always helpful to go back to a time-tested framework: The 5 C's of Credit:

* Character: The human element

* Capacity: The ability to repay

* Capital: The skin in the game

* Collateral: The backstop

* Conditions: The external environment

In a world increasingly shaped by models and algorithms, will AI underwriters be able to measure character - and how? https://livesocial.seismic.com/l3ZFfK

#character in credit #credit underwriting #financial integrity #the 5 C's of credit #AI and character