Proceedings of the 2015 International Conference on Humanities and Social Science Research

Optimal Credit Card Customer Portfolio Construction Under Uncertain Situation

Authors
Xiaoxia Huang, Xiaohong Zhao
Corresponding Author
Xiaoxia Huang
Available Online September 2015.
DOI
https://doi.org/10.2991/ichssr-15.2015.25How to use a DOI?
Keywords
Customer portfolio selection; uncertainty theory; credit loss
Abstract
Since the absence of portfolio model, banks may admit the credit card application without an effective evaluation standard in the extension of credit card business. This paper discusses a credit card customer portfolio selection problem in which the returns from customers are given by experts’ estimations rather than historical data. The customer factors which directly affect the returns are regarded as uncertain variables. Based on customer segmentation, we proposed an optimal customer selection model with the objective of maximizing the expected return value within the constraints of capital limitation and risk diversification and the requirement on credit loss. To facilitate users to solve the model with practicable programming solvers, a crisp equivalent model is provided to show how credit card managers can make use of the model to select customers under the uncertainty theory.
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Proceedings
2015 International Conference on Humanities and Social Science Research
Part of series
Advances in Social Science, Education and Humanities Research
Publication Date
September 2015
ISBN
978-94-6252-115-5
ISSN
2352-5398
DOI
https://doi.org/10.2991/ichssr-15.2015.25How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Xiaoxia Huang
AU  - Xiaohong Zhao
PY  - 2015/09
DA  - 2015/09
TI  - Optimal Credit Card Customer Portfolio Construction Under Uncertain Situation
BT  - 2015 International Conference on Humanities and Social Science Research
PB  - Atlantis Press
SN  - 2352-5398
UR  - https://doi.org/10.2991/ichssr-15.2015.25
DO  - https://doi.org/10.2991/ichssr-15.2015.25
ID  - Huang2015/09
ER  -