TY  - SER
AU  - Zhao Yi
TI  - Predicting New Customers' Risk Type in the Credit Card Market
PY  - 0000///0
CY  - 
PB  - August 2009
KW  - CRM, Credit Card Market
N2  - Recent studies in marketing have consistently shown that all customers are not equally profitable. In the credit card business, all customers are not equally risky. When a customer misses one payment on a credit card bill, a signal is sent to the credit card company. It is important for the card issuer to interpret the signal and to identify whether the customer is a low-risk one, who will eventually pay back the debt and contribute to the card issuer's profits by paying interest on the overdue balance, or a high-risk one, who will not pay back the debt. The issuer can then customize its policies to deal with these different consumer types. This article develops a dynamic model for debt repayment behavior of new customers in the credit card market that makes it possible to differentiate between low-risk, delinquent customers and high-risk customers. The authors apply the model to a data set of new consumers' monthly spending and repayment records
UR  - http://192.168.6.13/libsuite/mm_files/Articles/AR10902.pdf
ER  -