TITLE:
Customer Segmentation of Credit Card Default by Self Organizing Map
AUTHORS:
Hui Wu, Chang-Chun Wang
KEYWORDS:
Self Organizing Map, Clustering, Machine Learning, Credit Default
JOURNAL NAME:
American Journal of Computational Mathematics,
Vol.8 No.3,
September
3,
2018
ABSTRACT: In this paper we applied the technique of Self Organizing Map (SOM) to segment individuals based on their credit information. SOM is an unsupervised machine learning method that reduces data complexity and dimensionality while keeping sits original topology, which is superior to other dimension reduction methods especially when features in data have unclear nonlinear relations. Through this method we provide more clear and intuitive segmentation that other traditional methods cannot achieve.