Score %
US 20040044615A1
(19) United States (12) Patent Application Publication (10) Pub. No.: US 2004/0044615 A1 (43) Pub. Date:
Xue et al. (54) MULTIPLE SEVERITY AND URGENCY
RISK
(52)
Mar. 4, 2004
US. Cl. .............................................................. .. 705/38
EVENTS CREDIT SCORING SYSTEM
(57)
(76) Inventors: Xun Sean Xue, Tampa, FL (US); Xing-Hong Xue, New York, NY (US)
This invention creates a credit performance valuation system composed of risk cells and risk events. This invention provides a method to classify credit customers into a mul
Correspondence Address: Xun Sean Xue
2106 S. Grady Avenue
titude of different segments according the severity and the urgency of the bad payment behavior speci?ed by risk
Tampa, FL 33629 (US)
(21) Appl. No.:
10/233,799
(22) Filed:
Sep. 3, 2002
ABSTRACT
events. Consequently, this invention measures credit risk by forecasting the likelihood of a customer Will be in each
segment by analyzing the process of bad credit performance. Furthermore, this invention designs a conditional modeling process Which measures credit risk accurately by predicting
Publication Classi?cation
the likelihood of a customer reaching different levels of bad (51)
Int. Cl? ................................................... .. G06F
17/60
performance at different times.
The Process and Method of Invention
10
Risk Events
Classification System
21
22
‘
g
Sample
Performance
(D
Data
Models
‘2)
2
A
‘(a w W
23
3
‘
U
Score
%
Cards
—o— '0
3
m
3 20
30
Customer
_
Information
1
Customer
Score
41
Customer Segmentation
42
Customer Solicitation 43
Portfolio Management
44
3
Risk Based Pricing
%
45
Prepayment Forecasting
+———
46
—> Secondary Marketing
Patent Application Publication
Mar. 4, 2004 Sheet 1 0f 11
US 2004/0044615 A1
FIG. 1 - The Process and Method of invention
10 Risk Events
—
Classification System
21
22
‘
g) 0
Sample Data
‘
Performance Models
8 (J)
(19) United States (12) Patent Application Publication (10) Pub. No.: US 2004/0044615 A1 (43) Pub. Date:
Xue et al. (54) MULTIPLE SEVERITY AND URGENCY
RISK
(52)
Mar. 4, 2004
US. Cl. .............................................................. .. 705/38
EVENTS CREDIT SCORING SYSTEM
(57)
(76) Inventors: Xun Sean Xue, Tampa, FL (US); Xing-Hong Xue, New York, NY (US)
This invention creates a credit performance valuation system composed of risk cells and risk events. This invention provides a method to classify credit customers into a mul
Correspondence Address: Xun Sean Xue
2106 S. Grady Avenue
titude of different segments according the severity and the urgency of the bad payment behavior speci?ed by risk
Tampa, FL 33629 (US)
(21) Appl. No.:
10/233,799
(22) Filed:
Sep. 3, 2002
ABSTRACT
events. Consequently, this invention measures credit risk by forecasting the likelihood of a customer Will be in each
segment by analyzing the process of bad credit performance. Furthermore, this invention designs a conditional modeling process Which measures credit risk accurately by predicting
Publication Classi?cation
the likelihood of a customer reaching different levels of bad (51)
Int. Cl? ................................................... .. G06F
17/60
performance at different times.
The Process and Method of Invention
10
Risk Events
Classification System
21
22
‘
g
Sample
Performance
(D
Data
Models
‘2)
2
A
‘(a w W
23
3
‘
U
Score
%
Cards
—o— '0
3
m
3 20
30
Customer
_
Information
1
Customer
Score
41
Customer Segmentation
42
Customer Solicitation 43
Portfolio Management
44
3
Risk Based Pricing
%
45
Prepayment Forecasting
+———
46
—> Secondary Marketing
Patent Application Publication
Mar. 4, 2004 Sheet 1 0f 11
US 2004/0044615 A1
FIG. 1 - The Process and Method of invention
10 Risk Events
—
Classification System
21
22
‘
g) 0
Sample Data
‘
Performance Models
8 (J)
