Research On Commercial Bank Personal Credit Scoring Model Based On Data Mining Technology

With China’s sustained and rapid economic development and continuousimprovement of people’s income levels, people’s consumption concept hassubsequently undergone tremendous changes, and personal consumer credit hasbecome a important part of the daily consumption. Therefore, the establishment ofpersonal credit rating and forecast the development of China’s banking system is notonly necessary, but also to promote consumer credit business development ofeffective measures. This requires our country to build personal credit system,personal credit score is the key to building personal credit system, through thepersonal conduct scientific credit score can accurately understand the individual’scredit status, correctly identify the individual credit risk, reduce transaction costsand improve transaction efficiency and promote the optimal allocation of creditresources.With computer technology, database technology’ rapid development andwide application in various industries in the accumulation of more and more data, thefinancial sector in particular. Massive accumulation of scientific data and theextensive use of various databases, people gradually realized that the use of largeamounts of data very difficult, inefficient and difficult to derive valuable guidance. Inthis case, data mining technology is introduced. Data mining is a new businessinformation processing technology; its main function is to a large number ofcommercial database business data extraction, transformation, analysis and processingof other models to extract critical data supporting business decisions.This data mining techniques have been used in commercial bank personal creditscore. This paper summarizes the development status of foreign personal credit score,based on data mining from the perspective of the current domestic commercial banksmature individual credit scoring models are introduced and analyzed. Conduct apersonal credit evaluation system helps considering individual risk, personal creditconditions and different indicators, etc., to avoid a single indicator assessment of theproblems of the aid fuzzy analytic hierarchy process, and the operation is simple andhelps to avoid the potential credit risk. At the same time, the fuzzy constraint matrixdefects, the paper tests the theory by introducing the overall mean of fuzzy analytichierarchy process improvements. Finally emphatically analyzed based on fuzzyanalytic hierarchy personal credit scoring system, drawing on the research results at home and abroad to build a personal credit rating index system, and the use of fuzzyAHP to determine the index system of personal credit score weighting of each index,the results applied examples. This study theoretically rich commercial bank personalcredit scoring method for commercial banks to choose the most appropriate method ofdata mining provides a personal credit score decision making, that will helpcommercial banks to control business risks and improve their competitiveness.