Autonomous Restructuring Portfolios in Credit Cards

This paper proposes the novel concept of Autonomous Restructuring Portfolios which would enable financial portfolios to re-adjust themselves to cater with the highly volatile customer behavior pattern. It investigates the possibility of using Kohonen’s Self Organizing Maps in analyzing, categorizing & modifying strategies applied on financial portfolios according to the its behavior patterns. It also puts forth a design which could enhance the effectiveness of the strategy assignment to different areas of portfolios. This model would introduce new strategies to meet new scenarios as well as to drop off obsolete strategies. This model is also applicable to any financial portfolio where dynamic business decisions needs to be made based on the portfolio’s behavior.