Clustering Analysis for Credit Default Probabilities in a Retail Bank Portfolio
Journal Title: Database Systems Journal - Year 2012, Vol 3, Issue 2
Abstract
Methods underlying cluster analysis are very useful in data analysis, especially when the processed volume of data is very large, so that it becomes impossible to extract essential information, unless specific instruments are used to summarize and structure the gross information. In this context, cluster analysis techniques are used particularly, for systematic information analysis. The aim of this article is to build an useful model for banking field, based on data mining techniques, by dividing the groups of borrowers into clusters, in order to obtain a profile of the customers (debtors and good payers). We assume that a class is appropriate if it contains members that have a high degree of similarity and the standard method for measuring the similarity within a group shows the lowest variance. After clustering, data mining techniques are implemented on the cluster with bad debtors, reaching a very high accuracy after implementation. The paper is structured as follows: Section 2 describes the model for data analysis based on a specific scoring model that we proposed. In section 3, we present a cluster analysis using K-means algorithm and the DM models are applied on a specific cluster. Section 4 shows the conclusions.
Authors and Affiliations
Adela Tudor, Elena Andrei Dragomir
Optimized Data Indexing Algorithms for OLAP Systems
The need to process and analyze large data volumes, as well as to convey the information contained therein to decision makers naturally led to the development of OLAP systems. Similarly to SGBDs, OLAP systems must ensure...
Cloud Computing and Smart Grids
Increasing concern about energy consumption is leading to infrastructure that supports real-time, two-way communication between utilities and consumers, and allows software systems at both ends to control and manage powe...
Integrated Information System for Higher Education Qualifications
In the present article we aim to study thoroughly and detail aspects related to architectures specific for e-learning and management of human resources training interconnected to management of qualifications. In addition...
Security Aspects for Business Solution Development on Portal Technology
In the scope of portal development, in order to talk about security issues, concerns, and solutions, it is necessary to define a few terms: authentication, authorization, Single Sign-On (SSO), confidentiality, integrity,...
Solutions for improving data extraction from virtual data warehouses
The data warehousing project’s team is always confronted with low performance in data extraction. In a Business Intelligence environment this problem can be critical because the data displayed are no longer available for...