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Data Mining and the Banking Sector: Managing Risk in Lending and Credit Card Activities
Abstract
Banking has changed rapidly over the last decades due to the ability to capture massive data sets easily and the availability of new tools for analysis. The new, commonly used expressions to describe these phenomena are data warehousing and data mining. The changes have transformed traditional banking activities such as extending loans and given birth to new businesses. For example, the credit card business would simply not exist today, or not in today’s form, without the use of high powered computers and new statistical methods.
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