Application Of Data Mining In The Risk Management Of Credit Card

With the increase of people’s income and the change of consumption idea, the issuance and use of credit cards keeps rising in recent years. The number of the credit cards accumulative circulation has reached 0.455 billion. However, what we can’t ignore is that the risk is rising-- credit card debt overdue by at 6 months in China rose to 357.64 billion. To strengthen bank credit risk management, establish risk prevention mechanism and optimize risk management technology has become the important subject faced by Commercial Banks. So this paper aims at building and performing the credit risk rating model based on the several kinds of Data Mining algorithm.This paper first theoretically analyzes the fundamental principles of the Data Mining, and focuses on the basic theory and common algorithm of decision tree model. Then the classification and characteristics of credit card risk is summarized, comprehensive evaluation of credit risk assessment in the application of credit card risk management is made, and western credit risk assessment method is introduced preliminarily. The difference between rural credit cooperatives credit cards and commercial bank credit card is analyzed, and the demand of rural credit cooperatives credit card risk assessment is put forward. In the basis of foreign personal credit scoring model, the basic principle of the construction of credit risk assessment model is put forward, and the influence factors are analyzed briefly according to the specific condition of rural credit cooperatives credit card holders. In this paper, the Data Mining theory is applied to personal credit risk assessment, and on the basis of the characteristics of rural credit cooperatives credit card and risk assessment the modeling solutions and the construction steps of r ural credit cooperatives credit evaluation model is put forward. In the empirical part, we will establish the personal credit risk assessment model based on Data Mining technology in SPSS Clementine 12.0 environment, according to the analysis of the customer credit card request information and transaction details of rural credit cooperatives, the decision tree model is adopted to establish the credit risk assessment model based on rural credit cooperatives, then realize the quantitative analysis of the personal credit risk of rural credit cooperatives caused by complicated factors.The paper finally introduces the application result of credit risk assessment model: optimize the credit cooperatives credit approval process and improve the efficiency of the credit decision, and put forward related suggestions of the current credit card risk assessment and management of the rural credit cooperatives.