Easy.Data.Mining™ — easily from Data to Success

Banks have the problem of predicting the credit-worthiness of new clients on the basis of historic data of past clients.

The creditworthiness also influences the interest rate of a credit. The sequel describes how [data mining] can be applied to this problem:

A bank has data about clients to whom it gave credits in the past. The client data contain personal data, data describing the financial status and the financial behaviour before and at the time the client was given the credit. The clients are divided into four classes. The first class contains all those clients who payed back the credit without any problems; the second class those who payed back with little problems here and there; the thrid contains those who should only get a credit after detailed checks because substantial problems of payback occurred in the past; and the forth class consists of all those who did not pay back at all. Using this data table a prediction model is created in order to predict the probability for each class for new clients. By the way: the combinations of attributes which are responsible for clients to have a high probability of not paying back will be identified by the prediction model, too.

The example shows how Data.Mining.Fox® can help banks to better predict the creditworthyness of customers. This helps to reduce the number of loan defaults on the one hand. On the other it also allows to offer better conditions to other customers with lower risk. Both, the bank and its customers, are therefore benefiting from this advantage.

Download test data by Easy.Data.Mining™ for the financial sector:

Can you reproduce the test results with our data mining test data for banks? Get our exemplary test data via this [free Data.Mining.Fox® test data download link for banks] and just try it! For this purpose please choose credit rating as the attribute to be forecasted (last column in our example file).

The above is just one of many possible examples how Easy.Data.Mining™ can add value by being profitably applied to challenges in the banking sector. By the way, for credit institutions and professional investment advisors we have developed a special product variation. Upon request you will receive more information.