--- title: "Meaning & Key Takeaway of: You want to evaluate future borrowers…" description: "\"You want to evaluate future borrowers, but in order to train an algorithm that will help you identify future defaults, you have to train it and evaluat..." image: "https://sms4smile.com/quotes/i/744/anthony-goldbloom-33612_algorithm_you-want-to-evaluate-future-borrowers-bu_377778.jpg" --- # You want to evaluate future borrowers, but in order to… ![“You want to evaluate future borrowers, but in order to train an algorithm that will help you identify future defaults, you have to train it and evaluate it on past data.” quote by Anthony Goldbloom](https://sms4smile.com/quotes/i/744/anthony-goldbloom-33612_algorithm_you-want-to-evaluate-future-borrowers-bu_377778.jpg) [Download](https://sms4smile.com/quotes/i/744/anthony-goldbloom-33612_algorithm_you-want-to-evaluate-future-borrowers-bu_377778.jpg) [Open image](https://sms4smile.com/quotes/i/744/anthony-goldbloom-33612_algorithm_you-want-to-evaluate-future-borrowers-bu_377778.jpg) > “You want to evaluate future borrowers, but in order to train an algorithm that will help you identify future defaults, you have to train it and evaluate it on past data.” [Anthony Goldbloom](https://sms4smile.com/quotes/author/anthony-goldbloom/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Training models on historical data risks overfitting and may not predict future behavior accurately. **In simple terms:** Past data can mislead future predictions. Key Takeaway Validate with out‑of‑sample tests. Themes machine learning finance risk assessment Mood cautious analytical Type technical practical When to use this quote - credit scoring - loan underwriting - risk management Key Concepts overfitting data leakage model validation Questions to Reflect On - How can you ensure model robustness? - What alternative data could improve predictions? A Different Perspective Historical patterns may not hold under new economic conditions. ★ ★ ★ ★ ★ No ratings yet [Algorithm](https://sms4smile.com/quotes/about/algorithm/) [Data](https://sms4smile.com/quotes/about/data/) [Future](https://sms4smile.com/quotes/about/future/) [Help](https://sms4smile.com/quotes/about/help/) [Order](https://sms4smile.com/quotes/about/order/) [Past](https://sms4smile.com/quotes/about/past/) [Train](https://sms4smile.com/quotes/about/train/) ## Related quotes > [“Sometimes in order to keep moving forward, not only must you take one step at a time, but you must be willing to look…](https://sms4smile.com/quotes/g-k-adams/sometimes-in-order-to-keep-moving-forward-not-only-must-you-take-one/) G.K. 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A startup is not one, but a series of 'Aha!' moments,…](https://sms4smile.com/quotes/anthony-goldbloom/startup-stories-are-always-smoother-in-the-telling-than-they-are-in/) [Anthony Goldbloom](https://sms4smile.com/quotes/author/anthony-goldbloom/) > [We think Facebook and Google know a lot about us - who knows more about us than AmEx, MasterCard and Visa? They know exactly…](https://sms4smile.com/quotes/anthony-goldbloom/we-think-facebook-and-google-know-a-lot-about-us-who-knows-more-about/) [Anthony Goldbloom](https://sms4smile.com/quotes/author/anthony-goldbloom/) > [Business analytics or predictive modelling is a $100 billion industry, and $41 billion is spent on outsourced business analytics every year. 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Everyone wants…](https://sms4smile.com/quotes/anthony-goldbloom/as-a-young-entrepreneur-starting-an-enterprise-company-be-prepared/) [Anthony Goldbloom](https://sms4smile.com/quotes/author/anthony-goldbloom/) > [Our view is that the very best data miners or statisticians can earn as much as the very best golfers or tennis players.](https://sms4smile.com/quotes/anthony-goldbloom/our-view-is-that-the-very-best-data-miners-or-statisticians-can-earn/) [Anthony Goldbloom](https://sms4smile.com/quotes/author/anthony-goldbloom/) [Explore all 14 Anthony Goldbloom quotes ](https://sms4smile.com/quotes/author/anthony-goldbloom/) ## More Algorithm quotes > [“No algorithm exists for the metaphor, nor can a metaphor be produced by means of a computer’s precise instructions, no matter what the volume…](https://sms4smile.com/quotes/umberto-eco/no-algorithm-exists-for-the-metaphor-nor-can-a-metaphor-be-produced/) [Umberto Eco](https://sms4smile.com/quotes/author/umberto-eco/) > [“AI must orbit humanity, not turn humanity into a lie.”](https://sms4smile.com/quotes/abhijit-naskar/ai-must-orbit-humanity-not-turn-humanity-into-a-lie/) [Abhijit Naskar](https://sms4smile.com/quotes/author/abhijit-naskar/) > [No one knows what the right algorithm is, but it gives us hope that if we can discover some crude approximation of whatever this…](https://sms4smile.com/quotes/andrew-ng/no-one-knows-what-the-right-algorithm-is-but-it-gives-us-hope-that-if/) [Andrew Ng](https://sms4smile.com/quotes/author/andrew-ng/) > [This is where the world is going: direct access from anywhere to any type of data, whether it's a small piece of data or…](https://sms4smile.com/quotes/hasso-plattner/this-is-where-the-world-is-going-direct-access-from-anywhere-to-any/) [Hasso Plattner](https://sms4smile.com/quotes/author/hasso-plattner/) > [“We will start by sketching the recursive algorithm and then add details to get to a full description of the algorithm. Footnote : Translation:…](https://sms4smile.com/quotes/sariel-har-peled/we-will-start-by-sketching-the-recursive-algorithm-and-then-add/) Sariel Har-Peled > [“Use AI to empower life, don't abuse AI to ruin life. AI must orbit humanity, not turn humanity into a lie.”](https://sms4smile.com/quotes/abhijit-naskar/use-ai-to-empower-life-don-t-abuse-ai-to-ruin-life-ai-must-orbit/) [Abhijit Naskar](https://sms4smile.com/quotes/author/abhijit-naskar/) > [“Naskar Constitution of GenAI (Sonnet) At times I'm hard on AI, at times I'm lenient, I have just one law on AI, keep the…](https://sms4smile.com/quotes/abhijit-naskar/naskar-constitution-of-genai-sonnet-at-times-i-m-hard-on-ai-at-times/) [Abhijit Naskar](https://sms4smile.com/quotes/author/abhijit-naskar/) > [“An algorithm is a methodical set of steps that can be used to make calculations, resolve problems and reach decisions. An algorithm isn’t a…](https://sms4smile.com/quotes/yuval-noah-harari/an-algorithm-is-a-methodical-set-of-steps-that-can-be-used-to-make/) [Yuval Noah Harari](https://sms4smile.com/quotes/author/yuval-noah-harari/) > [“AI - The Whole Picture In medicine, we have a condition called oxygen toxicity, which means, even oxygen can do harm if inhaled excessively.…](https://sms4smile.com/quotes/abhijit-naskar/ai-the-whole-picture-in-medicine-we-have-a-condition-called-oxygen/) [Abhijit Naskar](https://sms4smile.com/quotes/author/abhijit-naskar/) > [Nature doesn't feel compelled to stick to a mathematically precise algorithm; in fact, nature probably can't stick to an algorithm.](https://sms4smile.com/quotes/margaret-wertheim/nature-doesn-t-feel-compelled-to-stick-to-a-mathematically-precise/) [Margaret Wertheim](https://sms4smile.com/quotes/author/margaret-wertheim/) > [An algorithm is like a recipe.](https://sms4smile.com/quotes/muhammad-waseem/an-algorithm-is-like-a-recipe/) [Muhammad Waseem](https://sms4smile.com/quotes/author/muhammad-waseem/) > [“So everything is an algorithm now. And just as every Google search uses its algorithms to produce a different result for each person searching,…](https://sms4smile.com/quotes/chris-anderson/so-everything-is-an-algorithm-now-and-just-as-every-google-search/) [Chris Anderson](https://sms4smile.com/quotes/author/chris-anderson/) > [“Algorithm without humanity is mental holocaust.”](https://sms4smile.com/quotes/abhijit-naskar/algorithm-without-humanity-is-mental-holocaust/) [Abhijit Naskar](https://sms4smile.com/quotes/author/abhijit-naskar/) > [“When security fails, the algorithm doesn't pay the bill.”](https://sms4smile.com/quotes/ricardo-novaes/when-security-fails-the-algorithm-doesn-t-pay-the-bill/) Ricardo Novaes > [“Once out, AI is here to stay, but there are meaningful ways to use AI instead of cheap forgery.”](https://sms4smile.com/quotes/abhijit-naskar/once-out-ai-is-here-to-stay-but-there-are-meaningful-ways-to-use-ai/) [Abhijit Naskar](https://sms4smile.com/quotes/author/abhijit-naskar/) [Browse all 63 Algorithm quotes ](https://sms4smile.com/quotes/about/algorithm/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "You want to evaluate future borrowers, but in order to train an algorithm that will help you identify future defaults, you have to train it and evaluate it on past data.", "creator": { "@type": "Person", "name": "Anthony Goldbloom" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/anthony-goldbloom/you-want-to-evaluate-future-borrowers-but-in-order-to-train-an/", "about": { "@type": "Thing", "name": "Algorithm" }, "@id": "https://sms4smile.com/quotes/anthony-goldbloom/you-want-to-evaluate-future-borrowers-but-in-order-to-train-an/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/744/anthony-goldbloom-33612_algorithm_you-want-to-evaluate-future-borrowers-bu_377778.jpg", "contentUrl": "https://sms4smile.com/quotes/i/744/anthony-goldbloom-33612_algorithm_you-want-to-evaluate-future-borrowers-bu_377778.jpg", "url": "https://sms4smile.com/quotes/i/744/anthony-goldbloom-33612_algorithm_you-want-to-evaluate-future-borrowers-bu_377778.jpg", "width": 1080, "height": 1080, "caption": "“You want to evaluate future borrowers, but in order to train an algorithm that will help you identify future…” — Anthony Goldbloom", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Anthony Goldbloom", "item": "https://sms4smile.com/quotes/author/anthony-goldbloom/" }, { "@type": "ListItem", "position": 4, "name": "You want to evaluate future borrowers,...", "item": "https://sms4smile.com/quotes/anthony-goldbloom/you-want-to-evaluate-future-borrowers-but-in-order-to-train-an/" } ], "@id": "https://sms4smile.com/quotes/anthony-goldbloom/you-want-to-evaluate-future-borrowers-but-in-order-to-train-an/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```