Application of Six Sigma DMAIC Methodology to Reduce Financial Risk: A Study of Credit Card Usage in Taiwan

摘要

This study collected modern foreign and domestic literature concerning financial risk management and credit cards, discussed current situations and bottlenecks that the domestic customer financial sector encounters, analyzed bank strategy and considered factors. It used the Six Sigma DMAIC (Definition, Measure .Analysis, Improve, Control, DMAIC) methodology to reduce financial risk impact. Definition: define the debt risk of Approved credit card, Measure: measures the influential factors of debt risk, the customer options used in CRMwere utilized to review credit ratings, and relevant data was collected to analyze basic information and customer repayments. Analysis: analyze the key factors of debt risk, a decision tree and data mining were used to predict whether the customer repayments were normal. Improve: suggest the improvement of key debt risk and solution. Control: control the implement of improvement of risk and construct customer credit rules. Through ROC curve verification, the decision tree theory has good classification capability for the credit of consumer credit cards, and it can help create good warning measures. It can also produce strong rules to construct a credit prediction model for credit cards. In addition to hastening customer classification, the model can find the key potential factors of credit rules and solve bottlenecks in the bank credit card center.