Risk Management About Credit Card On Customer Hierarchy

With the economic and financial environment changes, banks face great challenges. On the one hand, interest rates and inflation rate are changing violently, it become more and more difficult to predict them precisely; on the other hand, the financial regulations are strengthen, it weaken the bank's profit-making ability, many businesses are no longer make profit, in order to avoid control and increase profitability, there are more and more financial innovation. as an innovative retail financial products, Credit card have many functions, such as consumer credit, consumer balance sheet, deposit and withdraw cash, transfer receipt slip and other functions, many consumers like to use credit card, with over half a century's develop since its birth,credit card has been greatly developed. Credit card now become a important business of bank which can make many profits, for some banks it have even become one of the most profitable sectors of a bank. Bank credit card business in China only start recently, but the develop rapid is very fast, it already has a considerable scale, there are broad prospects for development and the earning potential.However, as a financial product, if there is no developed risk management system and did not establish a good risk prevent mechanism, it is easy to plant a hidden crisis, the credit card business would be difficult to get healthy and sustainable development. China's commercial banks which carry out the credit card business have inherent defects and acquired deficiencies. As yet, the develop model of credit card business is "enclosure movement" model ,it's extensive expansion mode, the corresponding risk management methodology is relatively crude; and in China the personal credit system construction which can be used for credit risk control has not keep up with the credit card business development it prosperity of our credit card business behind potential dangers. Speed up the establish of the bank's credit card business risk management system and service system are serious problem that our commercial bank which have credit card business are faced.Credit card business is a kind of credit instrument which built on the base of Cardholder's consumer credit behavior, it has characteristics of private and delicate, their risk manage must be based on the correct inspect of cardholder's features, only like this that can use the limited resources efficiently, identify, measure and manage risk efficiently. So with the credit card business development's upgrade, it becomes the certain trend that the development model the credit card business is change from extensive to intensive inevitable. Both for enhance the profitability and effective control of the risk of credit card business, distinguish different groups of customers can make the work more effective. By means of provide different service to customer of different groups can reduce the cost, increase the profits,low the risk level and strengthen bank's competitive ability.Based on the analysis of credit risk which closely related to the customer behavior and the analysis of characteristics of these risks, what causes these risks, combine with the analysis of the customers who has risks or potential risks,their types of objective risk characteristics, psychological characteristics and behavioral characteristics, investigate the applicability of risk management that based on the divide of credit card customers. Draw on existing customer segmentation model, with the purpose to strengthen risk management, select risk indicators that about customer behavior reasonable, build customer risk management hierarchical model. After category customer in a reasonable way, investigated the characteristics of each class, analysis the similarities and differences between all levels of our customers risk management. Corresponds to determine the degree of focus layers of risk management and focus, adopt different risk management measures to different class to achieve a reasonable distribution of risk management resources in order to enhance the credit card business risk management's efficiency.