Analyzing Customers Credit Scoring Criteria in Banking Industry Using Fuzzy Cognitive Mapping Approach
محورهای موضوعی : Operation Research
Samaneh Shariatmadari
1
,
Mahdi Homayounfar
2
,
Keyhan Azadi
3
,
Amir Daneshvar
4
1 - PhD Candidate, Department of Industrial Management, Rasht Branch, Islamic Azad University, Rasht, Iran
2 - Department of Industrial Management, Rasht Branch, Islamic Azad University, Rasht, Iran
3 - Assistant Professor, Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran
4 - Assistant Professor, Department of Information Technology Management, Electronic Branch, Islamic Azad University, Tehran, Iran
کلید واژه: Credit Scoring, Banking Industry, Criteria, FCM,
چکیده مقاله :
Credit scoring is one of the fundamental concepts in bank industry, used for analyzing and evaluating the customers who request for facilities. Because of its importance to its profitability, especially in the developing countries, this study aims to propose a fuzzy cognitive mapping approach for analyzing the potential criteria in credit scoring of legal clients. This research is applied in terms of purpose and survey in terms of method. This research has been conducted in several steps. In the first step, after reviewing the literature, the important factors for scoring the bank's legal clients were identified and 29 criteria out of them were selected. In the next step, a primal evaluation of these criteria by 16 experts, resulted in the 12 more important criteria (total debt ratio, return on assets, ratio of fixed assets to equity, average customer account, customer capital, the ratio of the deferred amount to current assets, ownership ratio (equity to total assets), amount of received facilities, borrowing capacity, amount of requested facility, type of guarantee and credit risk of the last period) were used in the modeling process. Due to the need for fuzzy logic regarding subjective judgments in cause-effect relationships between criteria, fuzzy cognitive mapping (FCM) method was used to visualize the relationships among these factors. The results show that the amount of requested facilities, customer capital, borrowing capacity and amount of received facilities, ratio of fixed assets to equity, and average customer account are the critical criteria in credit scoring of the legal clients.
Credit scoring is one of the fundamental concepts in bank industry, used for analyzing and evaluating the customers who request for facilities. Because of its importance to its profitability, especially in the developing countries, this study aims to propose a fuzzy cognitive mapping approach for analyzing the potential criteria in credit scoring of legal clients. This research is applied in terms of purpose and survey in terms of method. This research has been conducted in several steps. In the first step, after reviewing the literature, the important factors for scoring the bank's legal clients were identified and 29 criteria out of them were selected. In the next step, a primal evaluation of these criteria by 16 experts, resulted in the 12 more important criteria (total debt ratio, return on assets, ratio of fixed assets to equity, average customer account, customer capital, the ratio of the deferred amount to current assets, ownership ratio (equity to total assets), amount of received facilities, borrowing capacity, amount of requested facility, type of guarantee and credit risk of the last period) were used in the modeling process. Due to the need for fuzzy logic regarding subjective judgments in cause-effect relationships between criteria, fuzzy cognitive mapping (FCM) method was used to visualize the relationships among these factors. The results show that the amount of requested facilities, customer capital, borrowing capacity and amount of received facilities, ratio of fixed assets to equity, and average customer account are the critical criteria in credit scoring of the legal clients.
