Research


March 12, 2026by Cristian0

We are excited to share the latest research out of our lab. In a new paper published in Patterns, our team – including Yuhao Zhou, Wenhao Chen, our frequent collaborator Prof. María Óskarsdóttir, and Prof. Matt Davison – explores why women remain underrepresented in corporate boardrooms despite having the same qualifications as their male peers.

When people discuss the gender gap in leadership, the conversation usually turns to individual career choices, formal qualifications, or official diversity policies. However, we wanted to look deeper into the informal social processes that determine who gets noticed, trusted, and ultimately invited into these powerful roles.

To figure this out, we combined social network analysis with a causal learning framework and Long Short-Term Memory (LSTM) deep learning models. We analyzed a massive dataset tracking the career histories and network connections of more than 19,000 senior managers and board members across over 700 publicly traded Canadian firms over a 23-year period.

To avoid outlier or dissimilar paths, we used a matching methodology to pair female candidates with male counterparts who had highly similar demographic profiles and career trajectories. By keeping career paths constant, we were able to isolate the true impact that professional networks have on board appointments.

Year 2020 sample network visualization
Year 2020 sample network visualization

What we found reveals a clear, structural “glass ceiling” across networks. Even with identical experiences, women and men experience the benefits of networking very differently.

Here is what our models uncovered:

  • The Network Premium: Women who successfully secure board seats tend to possess unusually broad and central professional connections. Essentially, women must clear a much higher informal threshold, building wider and more influential networks than men, to attain equivalent board roles.
  • Different Paths to the Top: For men, educational and their current employment networks carry the greatest predictive weight for securing board appointments. Women, however, must rely on a much more balanced mix of connections, drawing upon informal social engagements alongside their formal professional networks to achieve the same outcomes.
  • The Power of Female Mentorship: Our gender-specific analysis revealed that female-to-female professional ties are truly impactful. Existing female board members play a substantial and vital role in lifting other women into leadership positions. Targeted sponsorship and mentorship within underrepresented groups is key in career advancement.

These findings highlight that boardroom inequality is not just about hiring decisions; it is structurally embedded in everyday networking practices. Addressing these hidden barriers requires moving beyond individual qualifications to actively widen recruitment channels, reduce reliance on closed networks, and foster truly inclusive professional relationships.

Read the press releases from Western & Cell Press.



December 16, 2025by Cristian2

The Banking Analytics Lab at Western University invites applications for two fully funded PhD positions in credit risk modelling, financial stability, and advanced machine learning). In addition, we invite applications for up to two fully funded PhD positions focusing on climate risk. These research projects aim to develop rigorous and objective methods to improve credit risk management and financial risk assessment. The research will leverage alternative data sources, network-based stress testing frameworks, advanced deep learning methods, large-scale models, and robust optimization techniques. Within this framework, the research will also address how multiple sources of risk, including climate risks, can be incorporated into credit risk and financial stability analysis across economic sectors, with applications in banking, finance, and regulation.

Position Details:

  • Full funding guaranteed for four years.
  • Annual stipend of CAD$30,000.
  • Direct collaboration opportunities with major banks, pension funds, data vendors, and regulatory bodies.
  • Access to unique datasets and computing resources, plus annual funds for travelling and expenses.

The Successful Candidates Will

  • Conduct research using advanced deep learning methods and large-scale models to address key challenges in credit risk management, including the assessment of alternative data value, risk propagation and financial contagion in payment networks, individualized pricing strategies, and robust optimization under portfolio level shocks.
  • Develop deep learning models and network-based stress testing tools to assess how such events impact credit risk and financial stability, using real nationwide microentrepreneur data in a partnership with leading financial institution.
  • Develop new analytical and computational frameworks that explicitly integrate climate scenario projections related to economic transition and physical shocks into financial risk assessment for institutional investing and regulatory stress testing.
  • Work at the intersection of applied probability, econometrics, machine learning, statistics, stochastic control and banking using real, challenging datasets to solve problems at the forefront of modern banking and climate risk modelling.
  • Contribute to both academic research and practical applications.
  • Engage with industry partners and regulatory bodies.

Required Qualifications:

  • Master’s degree in statistics, operations research, computer science, economics, applied mathematics, or related fields for PhD positions in banking analytics.
  • Master’s degree in mathematical finance, statistics, operations research, economics, or related fields for PhD positions in climate risk.
  • Strong quantitative and programming skills. Python programming and knowledge of modern methods (pytorch, polars, spark, arrow, duckdb) is a strong plus.
  • Excellent written and verbal communication abilities.
  • Demonstrated interest in banking, financial, or mathematical finance applications.

Application Process:

  1. Submit your CV, academic transcripts and reference letters by January 31st, 2026 on Western’s graduate portal: https://grad.uwo.ca/admissions/apply.html. Please mention your GRE scores, if available. More information available here: https://www.uwo.ca/stats/graduate/phd-program.html
  2. Shortlisted candidates will be invited for interviews in February 2026.
  3. Final acceptance will be determined by the Graduate Affairs Committee.

 

For more information on positions in banking analytics, please contact Cristián Bravo at cbravoro@uwo.ca, and for positions in climate risk, please contact Ankush Agarwal at aagarw93@uwo.ca

One final, co-supervised, position is available in the UK, please see for this opportunity here with The University of Southampton.

The Banking Analytics Lab values diversity and encourages applications from all qualified individuals, including women, members of visible minorities, Indigenous peoples, and persons with disabilities. This position is available to anyone, worldwide.



October 28, 2025by Cristian0

Our latest paper is live! This is the work of our Ph.D. researcher Sahab Zandi, co-supervised by Cristián and María, in collaboration with Christophe Mues, J. C. Moreno-Paredes, at Santander Bank at the time and also Cristián’s Ph.D. classmate, and Kamesh Korangi. This paper is the conclusion of two years of work on our collaboration with Santander Spain, who provided direct access to their database. Our work is, to the best of our knowledge, the first one that measures calculates how risk propagates on small businesses on an individual basis, using advanced deep learning paired with financial behaviour and transactional information.

The Problem We Set Out to Solve

SME lending is challenging to judge from spreadsheets alone. Many small firms don’t have long financial histories, and traditional ratios can miss how trouble moves through supply chains. If a key customer stops paying, cash dries up and loan payments follow – that risk lives in relationships, not just in financial information.

The Idea

We added a “map of relationships” to the usual credit data. One layer captures who pay whom (financial transactions); another captures who share ownership. Together, those multilayer links give a fuller picture of where stress might spread.

How We Built It

We trained models that look at both worlds at once: the tabular records lenders already keep and graph representations of the two networks. A cross-attention fusion step lets each side inform the other before making a call – so the model isn’t blind to either the firm’s own profile or its neighbourhood.

What Changed

Adding the networks made predictions sharper than using standard data alone, with our best cross-attention model on the double-layer graph topping the baselines. We were able to catch more future defaulters, more reliably. We also saw modest gains when we kept the real-world direction and size of money flows, which help the model tell strong ties from weak ones.

What the Links Actually Tell Us

The transaction layer tends to be more informative than common ownership because it reflects live dependencies: who owes you money and how concentrated those receipts are. Firms exposed to defaulted customers (money flowing in from a troubled partner) look riskier than those exposed to defaulted suppliers, an effect that’s stronger when the ties are big and recurring.

Why It Matters

For lenders, network-aware scores flag clusters of correlated risk earlier and support fairer pricing. For SMEs, diversified, healthy counterparties become a credit asset in their own right. More broadly, better risk signals can widen access to finance—especially where traditional histories are thin—while still keeping decisions explainable and auditable.

Read the preprint in this ArXiV link. The paper is still a preprint, so please take it with a grain of salt as it will evolve through the peer-review process. We welcome any feedback!



April 3, 2025by Cristian0

Our latest paper, from our lab member Mahsa Tavakoli, is out. This was in collaboration with Prof. Rohitash Chandra at UNSW in Australia

When it comes to understanding how credit ratings are determined, most studies have focused only on numbers—like financial ratios and balance sheets. But in the real world, a lot of important information is found in written documents, such as company reports or news articles. In our study, we looked at how combining both numbers and text using deep learning models could improve the prediction of credit ratings. We tested different types of models and ways to blend the data, and we found that a model based on CNN (a type of deep learning model) that mixes information early and in the middle of the process gave the best results. Surprisingly, simpler models worked better than more complex ones, and the text information—like what’s written about a company—was even more useful than numbers in predicting credit ratings.

We also checked how reliable our model is when things change, such as during big events like the COVID-19 pandemic. The results showed our model stayed stable and still made good predictions, especially when using text data. Another interesting finding was that credit ratings given by Moody’s were more accurate over time than those from other rating agencies. This could help financial institutions trust those ratings more when making decisions. Overall, our study shows that using both text and numbers together can lead to smarter and more reliable credit rating predictions. It also opens the door for better tools that can help people make confident financial decisions—even during uncertain times.

The paper was published a bit ago at Applied Soft Computing. You can find the paper Open Access here, and its ArXiV version here.



October 17, 2024by Cristian0

Our latest preprint is out! Check it out on ArXiV.

Imagine making important decisions—like adjusting credit limits or recommending treatments—where there are multiple options instead of only “yes or no”. In our latest research, we asked whether traditional methods of estimating causal effects are enough for these complex situations. But what exactly is a causal effect? Simply put, a causal effect measures how one action directly impacts an outcome—like how increasing a credit limit might influence a customer’s spending behavior. Typically, these causal estimates help us make the “best” decision, but we found they don’t always tell the whole story.

Our study dives into what’s called a “multitreatment scenario”, where the range of possible actions isn’t limited to just one choice. For example, adjusting a credit limit could involve not only deciding whether to change it, but also determining by how much. In our case, the outcome we aimed to optimize was continuous—for instance the expected profit from adjusting credit card limits, and also the outcome was observable both before and after treatment.

We explored a new method that combines causal effect estimation with additional criteria like uncertainty measures and a “prediction condition”.  To truly enhance decision quality, we went beyond the traditional methods and added a fresh perspective. We brought in a measure called Conditional Value at Risk (CVaR), which allowed us to understand potential worst-case scenarios, not just the average outcome. Think of CVaR as a safety net that ensures we don’t overlook possible downsides while aiming for the best result.

We also introduced a “predictive condition” to help ensure our recommendations would actually be beneficial. Essentially, the predictive condition means we only recommend an action if we can confidently predict that the outcome will improve compared to where it started. In the context of adjusting credit limits, this meant that any suggested change had to show a clear increase in expected profit compared to the one corresponded to the original limit. This safeguard adds another layer of confidence, making sure that each decision made was a true upgrade rather than just a guess.

When applied to financial decision-making—adjusting credit card limits for consumers—we found that this combined approach outperformed traditional models. It wasn’t just about predicting the treatment effect, but also understanding how confident we could be about that effect while balancing it against other possible outcomes.

What makes this important is its broader applicability. Whether it’s deciding a financial policy, optimizing healthcare treatment doses, or managing resources, this refined approach could change how we navigate complex decisions. By blending causal analysis with a richer understanding of uncertainty, we can make recommendations that are not just statistically sound, but also practically more effective and personalized.

Our study is a step towards smarter decision-making in areas where “one size fits all” just doesn’t cut it. This work helps ensure that recommendations, whether in finance, healthcare, or any other field, are optimized not just for an average effect but for the best possible outcome across a range of real-world scenarios.

You can also listen to a machine-generated podcast of the preprint below.


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March 6, 2024by Cristian0

The Association for the Advancement of Artificial Intelligence (AAAI) conference is recognized as an elite conference in the field of artificial intelligence (AI), gathering a community of academic and industry experts engaged in both theoretical and applied AI research. The 38th AAAI conference was held in the city of Vancouver, Canada, from February 20th to 27th. It offered an excellent opportunity for sharing research work in AI, bridging potential collaborations, and offering the guidance of the direction of AI innovation.

Both Cristian and Jet attended. Jet presented our latest research: “Breaking Barriers: Unveiling Gender Disparities in Corporate Board Career Paths using Deep Learning.” This research was showcased in two workshops: the AI in Finance for Social Impact, organized by J.P. Morgan, and the AI for Financial Services, highlighting the cross-disciplinary impact and relevance of our work. In the former, the lab was also represented in the work “Extreme climate events and credit risk: stress testing approach for loans to SMEs based on network analysis”, presented by the PhD candidate Camilla Carpinelli, part of the group led by Prof. María Óskarsdóttir, at Reykjavík University.

Celebrating Recognition: Best Poster Award

Our collective efforts were recognized with the Best Poster Award at the workshop, a moment of great pride and joy for our team. We extend our deepest gratitude for this honour to the organizers, reaffirming our commitment to contributing meaningful insights and solutions in the realm of AI and social impact in banking.

Networking, Collaboration, and Future Horizons

The AAAI conference provided an excellent opportunity for engagement with the community of AI in Finance. Our team had a great time to meet, network, and exchanging ideas with fellow researchers and practitioners from both academia and industry. Notable interactions included enlightening discussions with peers from prestigious institutions and companies such as CMU, J.P. Morgan, and Capital One, among others.

As we reflect on our experiences at the AAAI conference, we are filled with gratitude for the opportunity to contribute to and partake in the global dialogue on AI. We look forward to attending the next one in 2025!


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February 6, 2024by Cristian0

 

Our latest paper is live! In this work, we study how to model financial contagion over dynamic networks. When people apply for loans, banks have a pretty important decision to make—can the borrower pay it back? Traditionally, banks use credit scores to assess risk, but our new research extends our previous research by delving deeper into the relationships borrowers have with others to better understand their chances of default.

Why Networks Matter in Credit Risk

Imagine you’re considering lending money to someone, but that person is part of a group where others have also borrowed money. This idea is at the heart of our study. Rather than seeing borrowers as isolated, we treat them as part of a bigger network. Their connections to other borrowers—like being in the same neighbourhood or using the same mortgage provider—might influence their financial behaviour.

Predicting Loan Defaults Using Dynamic Networks

Borrowers can be connected in various ways and these relationships evolve over time, making them dynamic. To better capture these connections, we developed a model that combines two powerful tools: Graph Neural Networks (GNNs) and Recurrent Neural Networks (RNNs). The GNNs help us map out these borrower networks, while the RNNs allow us to track how these relationships change over time. But that’s not all—we added an attention mechanism that prioritizes certain time points over others, based on their relevance to the borrower’s default risk.

What Did We Find?

We tested our model using real-world data from Freddie Mac, a major U.S. mortgage financier. The results were exciting—our model did a better job of predicting which borrowers were likely to default compared to traditional methods. It wasn’t just more accurate; it also provided a more profound understanding of why certain borrowers might struggle to repay loans.

Why This Matters

For banks and lenders, this research could change how they think about credit risk. By considering the connections between borrowers, lenders can make more informed decisions. This could even lead to more people getting approved for loans, especially those who might not have had a chance based on traditional credit scores alone. For borrowers, this kind of model could mean more opportunities. If banks can better understand the factors affecting risk, they might be more willing to take a chance on people who were previously overlooked.

What’s Next?

Our research shows that networks play a significant role in financial decisions, and there’s much more to explore. We’re excited to keep building on this work to better understand financial risk. The more we learn, the more we can help lenders and borrowers alike make informed financial decisions.

The paper is available, open to all and with CC-BY license, here. The code to replicate the paper can be found here.

Also, Juan Cristóbal Constain from Quipu created a podcast using NotebookLM from this post and the paper. Give it a listen below if you prefer!


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February 4, 2024by Cristian0

A bit late to the party, but as the first paper on this topic was recently published at EJOR (ArXiV, Journal), I thought it may merit the post.

Last year at the credit scoring conference, I was interviewed by Brendan Le Grange, host of the podcast How to Lend Money to Strangers. We discussed the paper I presented there, part of Sherly’s PhD thesis, on causal models for credit limit settings. The preprint of that paper will appear soon, read the first one meanwhile!

If you want to hear more about my thoughts on credit limit setting and how it relates to causal modelling, listen to the podcast episode in this link.



December 1, 2023by Daniel Abib0

We had a great time attending the 2023 INFORMS Annual Meeting that took place between October 15th to October 18th in Phoenix, AZ. This is one of the largest conferences in the field of OR, with 6,000+ attendees and 1,400+ sessions.

The BAL had a strong presence at the conference with four presentations:

  • On October 15th, we had two presentations:
    • Cristián Bravo presented the work with Kamesh Korangi and Christophe Mues on “Large-Scale Portfolio Optimization using Graph Attention Networks”.

 

  • Daniel Abib presented the work with Cristián Bravo, Raffaella Calabrese, and María Óskarsdóttir on “Optimal Feature Split in Classification Models with Dependency”.

 

  • On October 17th, Sahab Zandi presented the work with Kamesh Korangi, María Óskarsdóttir, Christophe Mues, and Cristián Bravo on “Leveraging Dynamic Multilayer Networks for Modelling Credit Risk Contagion in SMEs”.

 

  • On October 18th, Yuhao (Jet) Zhou presented the work with Collins Ntim, María Óskarsdóttir, Matthew Davison, and Cristián Bravo on “Uncovering the Network Power Gap: A Deep Learning Approach to Investigating Gender Disparities in the Boardrooms of Canadian Public Firms”.

 

We also had fun trying a few good restaurants in Scottsdale, AZ!

This was a great chance to showcase the preprints that will come out in the next few months. Stay tuned for them!



October 6, 2023by Cristian0

We had a great time attending the Credit Scoring and Credit Control Conference XVIII that took place between August 30th to September 1st in Edinburgh, UK. This conference bridges the academic/practitioner divide and is the world’s premier conference for credit scoring and credit risk related topics.

The BAL had a strong presence at the conference with six presentations:

  • On August 30th, Cristián presented the work with our PhD student Mahsa Tavakoli, cosupervised by Rohitash Chandra from UNSW, on “Multi-Modal Deep Learning for Midcap Credit Rating Prediction Using Text and Numerical Data”.
  • On August 31st we had two presentations:
    • Our collaborator Prof. María Óskarsdóttir from Reykjavík University, Iceland, presented the work by our PhD students Sahab Zandi and Kamesh Korangi, cosupervised by Prof. Christophe Mues from Southampton University and Cristián, titled “Credit Scoring with Dynamic Multilayer Graph Neural Networks”.
    • Cristián presented the work led by our PhD student Sherly Alfonso Sánchez, cosupervised by Prof. Kristina Sendova here at Western, called “Causal Learning for Credit Limit Adjustment in Revolving Lending Under Adversarial Goals”.
  • On September 1st, we had three:
    • Daniel Abib, who joined earlier this year as a postdoc at the Lab, presented the work coauthored with Prof. Raffaella Calabrese for Edinburgh University, Prof. María Óskarsdóttir, and Cristián. The work was called “Optimal Feature Split in Credit Risk Models with Dependency”.
    • Our PhD student Kamesh Korangi presented the work from his PhD, coauthored with Christophe Mues and Cristián, on “Deep Temporal Graph Networks for Behavioural Scoring Prediction in Revolving Credit Lines”.
    • Our PhD student Sahab Zandi presented the work with coautored with Kamesh, and cosupervised by Prof. María Óskarsdóttir, Prof. Christophe Mues, and Cristián. These last two works are part of the collaboration with one of the largest consumer banks in the world. Sahab’s presentation is titled “Modelling Credit Risk Contagion for SMEs over Supply Chains using Dynamic Multilayer Networks”.

The conference provided a great opportunity to meet and network with people in the field of credit risk from both academia and industry. We were honestly surprised and happy with the reception that we had from the conference attendants. We had many interesting talks and we look forward to what will come out of these chats!

We also had a blast having a reunion with some friends and colleagues after a while in Edinburgh!

We would like to thank the organizers, Professor Galina Andreeva and Professor Jonathan Crook from the Credit Research Centre at the University of Edinburgh, plus of course our collaborator Prof. Christophe Mues for hosting this wonderful conference. We look forward to attending the next one in 2025!