The Application of Bagging for Solving Small-Businesses' Credit Assessment Problems Based on Daily Transaction Data
Dong Yan-wen · 2009
Although many efforts have been made towards assessing credit risk,and various models and methods for credit assessment have been developed,most of them are based on financial data or stock price and some investigation data provided by special inquiry agencies. Because most of minor and small businesses do not disclose their financial information,it is almost impossible to assess their credit using models or methods published so far. Here we have proposed a new approach to assess the customers' credit only based on daily transaction data such as sales,payments by customers,amount of overdue payment,etc. This paper proposes a credit assessment system using bagging method. It aims to deal with the issue that the number of unsound customers is much less than that of healthy ones and improve the ability for identifying unsound customers. The performance and effectiveness of the proposed system is confirmed by applying it to the real problems.