Modeling the Trend of Credit Card Usage Behavior for Different Age Groups Based on Singular Spectrum Analysis

Credit card holders from different age groups have different usage behaviors, so deeply investigating the credit card usage condition and properly modeling the usage trend of all customers in different age groups from time series data is meaningful for financial institutions as well as banks. Until...

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Bibliographic Details
Published in:Algorithms 2018-02, Vol.11 (2), p.15
Main Authors: Nai, Wei, Liu, Lu, Wang, Shaoyin, Dong, Decun
Format: Article
Language:English
Subjects:
Age
Age groups
Bankruptcy
Behavior
behavior analysis
Credit cards
Human behavior
Mathematical models
Older people
Prepaid debit cards
Procurement cards
singular spectrum analysis (SSA)
Spectrum analysis
statistics of credit card usage
Time series
Trend analysis
trend modeling
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Summary:Credit card holders from different age groups have different usage behaviors, so deeply investigating the credit card usage condition and properly modeling the usage trend of all customers in different age groups from time series data is meaningful for financial institutions as well as banks. Until now, related research in trend analysis of credit card usage has mostly been focused on specific group of people, such as the behavioral tendencies of the elderly or college students, or certain behaviors, such as the increasing number of cards owned and the rise in personal card debt or bankruptcy, in which the only analysis methods employed are simply enumerating or classifying raw data; thus, there is a lack of support in specific mathematical models based on usage behavioral time series data. Considering that few systematic modeling methods have been introduced, in this paper, a novel usage trend analysis method for credit card holders in different age groups based on singular spectrum analysis (SSA) has been proposed, using the time series data from the Survey of Consumer Payment Choice (SCPC). The decomposition and reconstruction process in the method is proposed. The results show that the credit card usage frequency falls down from the age of 26 to the lowest point at around the age of 58 and then begins to increase again. At last, future work is discussed.
ISSN:1999-4893
1999-4893
DOI:10.3390/a11020015