Time series loan forecasting model with macroeconomic variables
The research project consists of improving a model that is used for the prediction of new loans granted at a financial institution. The improvements will come from adding macroeconomics variables in the original model which currently does not include these types of variables. The hypothesis is that adding these variables should provide more precise predictions because these variables represent conditions in the economy. Economic conditions should influence loan provided. The partner organization will benefit by benefiting from improved forecasting tool that they can implement recurrently or build upon. Also, they will benefit from a more knowledge about how factors in the Canadian economy affect their business.