Identifying potentially profitable credit card customers with artificial intelligence

Headnote

Neuristics creates hybrid solution blending Al tools into one model

EURISTICS CORP. HAS MELDED ARTIficial intelligence (AI) technologies into bank prospecting systems, creating a hybrid solution that identifies potentially profitable credit card customers. The Baltimore, MD-based company's Activation Model combines neural networks, statistical pattern recognition, fuzzy logic, set theory, chaos theory, genetic algorithms and other AI tools into one model. When run against prospect lists, the model sifts out customers likely to respond to credit card offers, as well as those who use revolving credit to pay off their balances.

Neuristics is currently developing predictive business solutions for onethird of the top 25 U.S. credit card issuers. In addition to forecasting response rates and other behavioral issues, the Activation Model-a profit-oriented scoring tool-balances individual credit risk with the cardholder's inclination to maintain revolving credit balances. "The objective of the model...