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Credit Card Case Study - Case Study 2

The document outlines a case study on data exploratory analysis for credit card data, emphasizing the importance of analytics in understanding customer behavior, personalizing offers, and detecting fraud. It presents a business problem faced by PSPD Bank, detailing the data available and specific questions posed by the CEO regarding customer spending and repayment behaviors. The document also includes tasks for data analysis, such as summarizing customer data and creating visual representations of spending trends.

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10 views

Credit Card Case Study - Case Study 2

The document outlines a case study on data exploratory analysis for credit card data, emphasizing the importance of analytics in understanding customer behavior, personalizing offers, and detecting fraud. It presents a business problem faced by PSPD Bank, detailing the data available and specific questions posed by the CEO regarding customer spending and repayment behaviors. The document also includes tasks for data analysis, such as summarizing customer data and creating visual representations of spending trends.

Uploaded by

a.n.thonym.u.sar.azal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CASE STUDY:

DATA EXPLORATORY ANALYSIS FOR CREDIT CARD


DATA

Website: www.analytixlabs.co.in
Email: [email protected]

Bldg-41, 14th Main Road, GF - SCO-382, Sector 29,


Sector 7, HSR Layout, Adj to IFFCO Chowk Metro Station,
(Near Mc Donald’s and Opp to Max Store), Besides Magic Pin,
Bengaluru, Kartnataka. Gurgaon, Haryana.

Disclaimer: This material is protected under copyright act AnalytixLabs©2011-2018. Unauthorized use and/ or duplication of this material
or any part of this material including data, in any form without explicit and written permission from AnalytixLabs is strictly prohibited. Any
violation of this copyright will attract legal actions.

AnalytixLabs, Website: www.analytixlabs.co.in Email: [email protected]: (+91) 955.521.9007


ANALYTICS IN CREDIT CARD INDUSTRY:
Analytics has penetrated every industry owing to the various technology platforms that
collect information and thus, the service providers know what exactly customers want. The
Credit Card industry is no exception. Within credit card payment processing, there is a
significant amount of data available that can be beneficial in countless ways.

Understanding the customer behaviour


The data available from a credit card processor identifies the types of consumer and their
business spending behaviors. Hence, developing the marketing campaigns to directly
address their behaviors indeed grows the revenue and these considerations will result in
greater sales.

Personalize offering based on data results


Data also reveals specific interests and needs in individual customers that a company can
leverage, this addressing their needs more efficiently. Specific promotions can be sent out
related to where these customers are located and this builds sales more quickly.

Use trends and patterns to get new customers


The transactions and activities of the existing customers that they do in terms of purchase
behavior tends to reflect larger trends that are coming. This information provides a strategy
to go after possible customers in the target audience.

Uncover suspicious activity


The data from credit card processing is becoming increasingly important as a tool to fight
fraud. When combined with artificial intelligence, this data is being analyzed quickly to
uncover areas of purchase activity.

Reduce chargebacks
The ability to detect suspicious activity and patterns in data can also assess whether or not a
transaction might result in a chargeback. Using analytics to track each transaction reveals
anomalies. This information can help you reject that transaction and save your business
from chargebacks.

AnalytixLabs, Website: www.analytixlabs.co.in Email: [email protected]: (+91) 955.521.9007


BUSINESS PROBLEM:
In order to effectively produce quality decisions in the modern credit card industry, knowledge
must be gained through effective data analysis and modeling. Through the use of dynamic data-
driven decision-making tools and procedures, information can be gathered to successfully evaluate
all aspects of credit card operations. PSPD Bank has banking operations in more than 50 countries
across the globe. Mr. Jim Watson, CEO, wants to evaluate areas of bankruptcy, fraud, and
collections, respond to customer requests for help with proactive offers and service.

DATA AVAILABLE -

This book has the following sheets:

Customer Acquisition: At the time of card issuing, company maintains the details of customers.

Spend (Transaction data): Credit card spend for each customer

Repayment: Credit card Payment done by customer

Following are some of Mr. Watson’s questions to a Consultant (like you) to understand the
customers spend & repayment behavior.

1. In the above dataset,

a. In case age is less than 18, replace it with mean of age values.

b. In case spend amount is more than the limit, replace it with 50% of that customer’s limit.
(customer’s limit provided in acquisition table is the per transaction limit on his card)

c. Incase the repayment amount is more than the limit, replace the repayment with the
limit.

2. From the above dataset create the following summaries:

a. How many distinct customers exist?

b. How many distinct categories exist?

c. What is the average monthly spend by customers?

d. What is the average monthly repayment by customers?

e. If the monthly rate of interest is 2.9%, what is the profit for the bank for each month?
(Profit is defined as interest earned on Monthly Profit. Monthly Profit = Monthly repayment
– Monthly spend. Interest is earned only on positive profits and not on negative amounts)

AnalytixLabs, Website: www.analytixlabs.co.in Email: [email protected]: (+91) 955.521.9007


f. What are the top 5 product types?

g. Which city is having maximum spend?

h. Which age group is spending more money?

i. Who are the top 10 customers in terms of repayment?

3. Calculate the city wise spend on each product on yearly basis. Also include a graphical
representation for the same.

4. Create graphs for

a. Monthly comparison of total spends, city wise

b. Comparison of yearly spend on air tickets

c. Comparison of monthly spend for each product (look for any seasonality

that exists in terms of spend)

5. Write user defined PYTHON function to perform the following analysis:

You need to find top 10 customers for each city in terms of their repayment amount by
different products and by different time periods i.e. year or month. The user should be able
to specify the product (Gold/Silver/Platinum) and time period (yearly or monthly) and the
function should automatically take these inputs while identifying the top 10 customers.

AnalytixLabs, Website: www.analytixlabs.co.in Email: [email protected]: (+91) 955.521.9007

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