Data mining methodology and application in debt collection industries

Abstract

Collecting debt bills from different types of organizations and people is always a challenging task. And for that as a debt collector company you need to have a very smart way to collect money. There has been not been too many research done on analysis of debtor behavior to get some generalized information in Finland. As a result, most organizations have to have their own analytics team to set proper business strategy for any debt. We get lots of classified data from different sources regarding debtor’s basic information, detail debt information, payment information and many other information. From thousands of variables, we find out the important variables and build a model. Later data is analyzed with these models and each case is given a rating value, by which business decisions can be made. And time to time the cash flow and other business factor is monitored to evaluate the performance of that model. To conclude, proper and accurate analysis is important before taking any business decision.