Client Needs & Objectives
Data teams provided an extraction containing clients data and commands. An extraction of the default variable was then transmitted.
The objectives were as follows:
- Reconstruct & test a complete database from the two extractions provided
- Assess the possibility of establishing a predictive model given the database
Our approach
1st study:
- Reconstruct & test a complete database from the two extractions provided. The quality of the database has then been tested and proved to be satisfactory
- From the reconstructed database, the following was done:
- Study of the distribution of actual and constructed variables
- Univariate, multivariate and correlation analysis
- Study on the ability to define a predictive model of default risk
2nd study:
- Transform the explanatory variables retained in binary mode (0 or 1) then classify them by taking the sum of the binary variables
- The results of such an exercise allow to conduct more thorough studies
Client Benefits & Main Results
Establish the good general quality of the database provided
Establish a typical client profile and command profile
Conduct univariate, multivariate and correlation analysis to highlight the explanatory variables to be used preferably in a predictive analysis
Realise the feasibility of the construction of a score given this database
The feasibility of predictive analysis (data mining & scoring) is established and they should deliver good results in terms of risk management and/or commercial pilot
The final use of such a classification hasn’t been discussed yet but will be