We present discrete time survival models of borrower default for credit cards that include behavioural data about credit card holders and macroeconomic conditions across the credit card lifetime. We find that dynamic models which include these behavioural and macroeconomic variables provide statistically significant improvements in model fit, which translate into better forecasts of default at ...

With the help of a commercial bank in China, we studied consumer credit card debt behavior in correlation with demographics, attitude, personality, and credit card features factors. The study was conducted by using mail-in questionnaires, which were sent to credit card holders who was using or had used either revolving credit or petty installment plans. According to regression functions, we fou...

Because of the variety of card holders‟ behavior patterns and income sources, each consumer account can change to different states. Each consumer account can change to states such as non-active, transactor, revolver, delinquent, and defaulted, and each account requires an individual model for generated income prediction. The estimation of the transition probability between statuses at the accou...

Electronic business (e-business) refers to the utilization of information and communication technologies (ICT) to support of all aspects of business (Turban et al., 2010). The term was first used by IBM's marketing and Internet teams in 1996 (Amor, 1999). E-business payment systems or solutions refer to the various innovative applications and approaches including the use of credit cards, magnet...

This paper explores the risk-based pricing strategies of banks issuing credit cards in the United States. We employ a unique database which combines both the risk of cardholders (demand side) and terms and conditions of credit cards (supply side) offered in the US. Our results suggest that the annual percentage rates paid per unit of long-term risk decrease, implying that high-risk cardholders ...