Intelligent Detection of Bad Credit Card Accounts

1. Overview The effective management of credit risk is a critical component of risk management and essential to the long-term success of any banking organization. Credit-risk management practices vary considerably among organizations. Bad accounts affect the credit reputation of the cardholder and cause issuers to loose billions of dollars each year. However, bad debts problems are complex, full of uncertainty and can only be resolved through manual intervention. This study proposes an intelligent model for the early and accurate detection of bad accounts based on fuzzy logic (FL) and back propagation neural networks (BPN). Experimental results verify the effectiveness of the proposed strategy.