Prediction of credit card default

Abstract

As profitable customer acquisition becomes more and more critical for the banking sector in terms of competition, the requirement to predict customer defaults with different machine learning algorithms is increasing. Thanks to similar practices, possible damages can be prevented. Due to the rapid change of machine learning with the changing technology, the fields of application and development in different sectors are also changing and developing rapidly. In this study, the aim is to make a comparison over model outcomes and making observations on outcomes to determine the areas that can be developed or researched with running different supervised and unsupervised machine learning algorithms on the final dataset gathered by doing following methods such as key points discovered in exploratory data analysis on an imbalanced credit card dataset, generating different features according to learned key points, eliminating imbalance with different oversampling and undersampling methods.