Discussion On Credit Risk Measurement Model Development And Application Of Technology In The Credit Card Industry In China

After several years of rapid development China's credit card industry has begun to take shape.Banks of China have issued 180 million credit cards, the amount of transaction in credit cards industry has expanded to 2.4 trillion RMB,and consumption of credit has amounted to 1.3 trillion RMB by the third quarter of 2009, the proportion of which in the total retail sales of consumer goods has jumped from 3.1% in 2006 to 14.9% in 2009.McKinsey Co.predicted that in the next few years, the profits of credit card industry in 2013 would reach 130 billion, and the credit cards will become the second-largest retail credit product. But after the outbreak of the financial crisis, the rising credit risk and bad debt ratio, the increase in the cases of credit card fraud had challenged the former management philosophies---------"started taking",which brought out the adverse consequences leading to widespread reflection in the credit card industry. How to achieve the balance of risks and profits and balance of scale and efficiency, I think the key of retaining of core competitiveness lies in the application of scientific and efficient credit risk measurement models developed by advanced data mining and statistical analysis, which could improve the capacity of risk identification, measurement, management and can optimize the efficiency of the credit approval,and fully enhance the risk management level.