Credit management based on risk intelligence and its managerial implications

Research output: Contribution to journalArticlepeer-review

Abstract

The recent economic crisis not only reduces the profit of retailer stores but also incurs the significant losses caused by increasing the late-payment rate of credit cards. Under this pressure, the scope of credit scoring needs to be broadened to the customer management after delinquency occurs. In doing so, this study clusters the delinquent customers in a department store into homogeneous segments by using a self-organizing map. This study then develops credit prediction models to recognize the repayment patterns of each segment by using a Cox proportional hazard analysis. The credit-scoring models are evaluated and the managerial implications of the study are provided.

Original languageEnglish
Pages (from-to)2177-2185
Number of pages9
JournalJournal of Computational Information Systems
Volume6
Issue number7
StatePublished - Jul 2010

Keywords

  • Credit management
  • Risk intelligence

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