Research On Evaluation System Of Personal Credit Risk Based On Data Mining

In recent years, personal consumer credit business which has potential for huge profits has become the new profit growth point of commercial banks, while the lack of personal credit risk management is a bottleneck in the development of consume credit. Moreover credit risk is one of the main risks that China's commercial banks face for a long period of time. Compared with the enterprise's credit risk assessment, risk assessment on personal credit is very weak. Most banks rely mainly on the experience of credit officers to decide on the approval, so personal preferences influence the results of the assessment. And along with a significant increase in the volume of credit business, it will result in a relative shortage of staff, long processing time, low efficiency, and high cost. All above are serious obstacles to the personal consumer credit business. Therefore, building a personal credit risk evaluation system have more important significance to the survival and development of China's commercial banks.This article begins with the analysis of the status and problems of personal credit risk assessment in China's Commercial Bank. Through researches and analysis of the personal credit assessment methods in and abroad, it combines with characteristics of consumer credit business of its own, and finally establish a personal credit risk assessment system based on data mining methods. Its main contributions are: Establish a set of alternative indicators of personal credit risk assessment; Establish personal credit risk assessment system based on data mining, mainly apply information gain and Logistic regression methods; Assess the personal credit assessment model, and has better results; finally, propose recommendations for strengthening and improving the application environment-related of personal credit risk assessment in commercial banks of China.The contributions of this paper are following: firstly, it can promote the establishment of personal credit risk assessment system of China's commercial bank; secondly, it can improve the level of credit risk management in consumer credit business of China's commercial banks; thirdly, it can reduce non-performing assets; fourthly, it can improve approval efficiency; fifthly, it can increase customer satisfaction; finally, it has significance for further development of consumer credit business , and enhance the commercial banks' core competitiveness.