DEVELOPMENT OF A CUSTOMER CREDIT EVALUATION SYSTEM VIA CASE-BASED REASONING APPROACH

摘要

This paper develops a case-based reasoning system to evaluate customers' credit in a small company. The proposed system extracts features data of customers from the database of the management information system and assesses the credit score of a target customer on the basis of similarity to cases already stored. A case is represented as a dataset containing eight features such as type of customers, sales, amount of overdue payment, etc. A procedure for similar cases retrieving and a credit scoring program based on similar cases are developed. The performance and effectiveness of the system was confirmed by applying it to real credit evaluating problems of the company. The credit evaluation results for healthy customers provided by the system are more than 98% in agreement with the judgments of financial managers of the company.