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The Effects Of Customer Segmentation, Borrowers' Behaviours And Analytical Methods On The Performance Of Credit Scoring Models In The Agribusiness Sector, Daniela Lazo, Raffaella Calabrese, Cristian Bravo Roman
The Effects Of Customer Segmentation, Borrowers' Behaviours And Analytical Methods On The Performance Of Credit Scoring Models In The Agribusiness Sector, Daniela Lazo, Raffaella Calabrese, Cristian Bravo Roman
Statistical and Actuarial Sciences Publications
The main aim of this study is to analyse the joint effects of customer segmentation, borrowers' characteristics and modelling techniques on the classification accuracy of a scoring model for agribusinesses. To this end, we used data provided by a Chilean company on 161,163 loans from January 2007 to December 2013. We considered random forest, neural network and logistic regression models as analytical methods. Regarding the borrowers' profiles, we examined the effects of socio-demographic, repayment-behaviour, agribusiness-specific and credit-related variables. We also segmented the customers as individuals, SMEs and large holdings. As the segments show different risk behaviours, we obtained a better …