Friday, March 9, 2012

Using Predictive Analytics and Cell Phone Usage to Build a Credit Score


This article describes how one company has created software that analyzes a customer's cell phone usage data to create a lifestyle profile and apply a credit rating score.  The software factors in "length of calls, time of day, and location."  For example, a user who makes phone calls in the middle of the night on a prepaid phone card could be considered a credit risk. Essentially, every phone call provides a set of data points that can be incorporated into building these complex predictive models.  Single tier data mining (of cell phone records in this case) is nothing new, but worth noting here is how the mined data is extrapolated for use in another domain, such as creating a credit rating score.

Read the article.

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