Data Mining Credit Risk Scoring Models

As China joins WTO, accelerate participating in the process of economic integration of the world. Chinese banking faces the enormous challenge, with the influential foreign bank land soon after. This is an inevitably trend of a process that global economy is integrated. And one of the strategies of managing business of RMB to foreign-funded commercial bank is to capture the credit card market. Foreign capitals bank have an optimistic view of credit card of China market because credit card market of our country have heavy potentiality remain to excavate very mainly in this way. At present, the number of banks of issued credit card, the number of issued credit card and trading volume rise by a wide margin, and every bank have accumulated a large number of customer trade relevant data too, but all banks of issued credit card face one common problem that is the data is very big at ordinary times, but really valuable information is few among them. So, how to utilize the data of customer's characteristic, behavior etc., obtained the customer's behavior mode, and offer support to policymaker better, carry on risk management, marketing, financial administration, customer service etc and become the important subject better. To resolve this problem, besides traditional credit card business statistical analysis technology, the application of data mining techniques is an important trend. How to offer the individualized service to different customers from refining out meaningful 'knowledge' in the data of customer of magnanimity, it is an urgent subject of launching credit card to every commercial banks is to reduce the risk at present. In the enormous banking of the data amount, it is the optimum place to display the data mining technology. In view of this, how to utilize the data mining techniques to excavate out the good model, becoming a focus of present academia on all aspects of the banking. This is original intention of writing this text in person too.This text has probed into the data warehouse of the bank, setting-up of the data mart, and the emphasis is how to apply this technology of data mining in themodel of the credit card risks and credit scoring, and this paper have put forward the new thinking of the model of setting up the risk and scoring with the neural network algorithm. Maybe this text can bring some help for launching the business of the credit card in the bank.This text have the data mining technology and credit card business analysis technology combined together, it is mainly used in credit card model. Meanwhile, put forward and built the thought which sets up the model with the neural network algorithm on forefathers' foundation too.This text divides five chapters altogether: Chapter one a part of the introduction, has explained the current situation of studying this subject domestic and overseas. Chapter two introduced some elementary knowledge of the data mining. Chapter three introduced some knowledge about credit card. Chapter four a focal point of this text, it has proposed to set up the credit card risks and scoring model by data mining technology. Chapter five is the summary and looking into the distance.