Qi Liu, Jun Dai, Paul Byrnes
28 th WCARS
November 9, 2013

Credit Card Project
• Scenario:
Clients call the bank asking for a reduction of their card fees.
Bank representatives offer discounts to clients to retain their accounts.
• Accomplished Objectives: identify the situations of loss of revenue in the negotiation of fees caused by bank representatives, as follow:
 bank representatives offer higher discounts than allowed
 bank representatives usually offer the highest allowable discounts without putting enough efforts to negotiate lower discounts
 bank representatives offer discounts without any negotiation with the clients
• Additional Findings:
 Negative discounts
 Inactive bank representatives
 Unreasonable short calls
2

Credit Card Project
• Civil Lawsuit
 Top reasons of civil lawsuits
 Relationship between operational loss and civil lawsuits
 Predictive analysis of clients who may cause civil lawsuits
• Disputes/Frauds

Main reasons of disputes and frauds

Relationship between operational loss and disputes

Predictive analysis of clients who may involve in disputes/frauds
• Credit: Delinquency
 Suspicious clients behaviors (incompatible number of cards/credit limits with clients’ incomes/profession)
 Profile clients based on their behaviors
• Money Laundering
 Atypical clients behavior (incompatible transaction behavior with clients’ income/profession)

Profile clients to predict money laundering
3

Credit Card Project
•
We identified 3,054,442 customers who have more than 1 active credit cards. Among them more than 99.6% customers have less than 5 active credit cards.
•
Frequency Distribution of customers having more than 5 active accounts is shown as follow.
2,500
2,000
1,500
1,000
500
0
2,041
6
487
7
134
48 34
8 9 10
Number of customers
7
11
8
12
1
13
4

Credit Card Project
25000
20000
15000
10000
5000
0
Average Income of the Customers Having More than 5 Active Credit Cards
6 7 8
Average Declared Income
9 10 11 12
Average Confirmed Income
13
5