Case Study on Risk Management

Problem Domain

A credit card holder becomes delinquent when he or she falls behind on credit card payments. Credit card delinquency is the most problematic area for Banks. Rosebay conducted a case study on Risk Management focusing around credit card deliquency. Based on 30,000 customer data over 3 years Rosebay conducted a study and designed an AI system to help predict credit card delinquencies.

Offered Solution

For this problem, we took over 1000s of variables from raw data.
Then we applied Transformation procedure to make these data more usable.

Transformed variables are combined into meta variables describing specific aspect of borrower.

Meta variables are then fit into AI models with particular attributes.

These models contribute to a final score, helping us with our final results.

Achieved Results

We were able to achieve tremendous results for this problem with the help of AI.

1. Best indicator of delinquency was ability to pay utility bills.

2. We were able to predict with over 94% accuracy on whether customer will pay next month’s installment or not.