Behavior-based Rating Of Automatic Credit Limit Management System Design

With the signing of WTO agreements and the fierce competition in credit card industry, the retardation in development of credit card management system becomes the bottle-neck in the rapid expansion business. The credit limit control system, as an important tool, has been used by the Bank of Communication to reward quality customers, mitigate bank risks, boost customer loyalty, as well as to remain long term profitability. Whereas, the traditional credit limit control is a manual process, which is only limited to new credit card customers. Due to lack of an accurate fast limit determination mechanism, the weakness of the traditional method is seen in automatic risk allocation to diversified customer base, increasing frequency of credit limit adjustment, flexibility in credit limit adjustment strategy, and immediate response to customers'requests on credit limit adjustment over phone call, etc. With the fast growing number of credit card customer, the traditional manual credit limit control method is unable to meet diversified customer needs.In view of the current extensive customer credit limit control mode in Bank of Communication Credit Card Center, the first step is to analyze the traditional manual credit limit control process flow, and understand the functional requirements and core processes. Next, analyze the overall framework of automatic credit limit allocation system over SOA structure. It is based on behavior scoring modeling technique, profits and cost sharing, and customer grouping technology that the analysis is made on design and the realization of some core subsystems, such as Linkage Data Process System, Strategy Database System, Customer Management System of TRIAD System and Report Analyzing System etc. Among these, the key focus is construction and application of Customer Behavior Scoring Model. Lastly, the future prospect of the application of modeling technique in credit card management system is discussed.