IMPROVING THE USE OF DATA MINING TECHNOLOGY AS A WAY OF REDUCING CREDIT RISK

Abstract: data mining technology or Data Mining can significantly reduce risks when lending to individuals. Banks are interested in lowering interest rates on loans. This allows to attract additional customers, increase profits, which is considered as the main goal of commercial activity.

The risks of probable losses associated with the borrower’s failure to comply with the terms of the loan agreement can be reduced by applying a probabilistic approach to assessing the property status of a potential client.

Keywords: banking system, banking risks, database, scoring, Duran model

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