Applying Machine Learning Methods for Credit Card Payment Default Prediction With Cost Savings

The credit card has been one of the most successful and prevalent financial services being widely used across the globe. However, with the upsurge in credit card holders, banks are facing a challenge from equally increasing payment default cases causing substantial financial damage. This necessitates the importance of sound and effective credit risk management in the banking and financial services industry. Machine learning models are being employed by the industry at a large scale to effectively manage this credit risk. This chapter presents the application of the various machine learning methods like time series models and deep learning models experimented in predicting the credit card payment defaults along with identification of the significant features and the most effective evaluation criteria. This chapter also discusses the challenges and future considerations in predicting credit card payment defaults. The importance of factoring in a cost function to associate with misclassification by the models is also given.

Trend and dynamics of card payment system in India

Payment system in India has undergone a dramatic change in recent years. The payment through cards, using both debit and credit cards, is one of the early innovations in the modern payment system in the country. Several intermediaries are involved in the effective functioning of card payment mechanism. As a result, the card payment infrastructure has grown remarkably well across India. The volume of payments made through these devices as well as the value of card payments increased rapidly in the last two decades. Among the commercial banks, the State Bank of India dominates in the maintenance of ATM infrastructure, the issue of cards and in the volume and value of card transaction. The private sector banks dominate in the installation of POS terminals and HDFC bank tops in the POS credit card transaction. However, the recent trend shows that the transaction through cards as a percentage of total retail electronic payments has been declining in India, as other retail payments platforms have become popular.

Enhanced credit card fraud detection based on attention mechanism and LSTM deep model

As credit card becomes the most popular payment mode particularly in the online sector, the fraudulent activities using credit card payment technologies are rapidly increasing as a result. For this end, it is obligatory for financial institutions to continuously improve their fraud detection systems to reduce huge losses. The purpose of this paper is to develop a novel system for credit card fraud detection based on sequential modeling of data, using attention mechanism and LSTM deep recurrent neural networks. The proposed model, compared to previous studies, considers the sequential nature of transactional data and allows the classifier to identify the most important transactions in the input sequence that predict at higher accuracy fraudulent transactions. Precisely, the robustness of our model is built by combining the strength of three sub-methods; the uniform manifold approximation and projection (UMAP) for selecting the most useful predictive features, the Long Short Term Memory (LSTM) networks for incorporating transaction sequences and the attention mechanism to enhance LSTM performances. The experimentations of our model give strong results in terms of efficiency and effectiveness.

Factors Influencing Online Purchase Intention in Qatar

This study investigated the factors influencing consumers' purchase intention from online stores in Qatar. Moreover, it tried to verify if payment method moderates the relationships concerning the suggested factors and online purchase intention. This research extended the theory of reasoned behavior (TRA) with trust as a predictor and payment method as a moderator. A total of 283 valid responses were collected from Qatari residents through an online questionnaire and analyzed the data to test the research hypotheses. The findings of this research indicated that all proposed factors significantly influenced online purchase intention. Results also indicated that there is no moderation effect of payment method on the proposed hypotheses. Further investigations revealed that all proposed factors significantly affect the online purchase intention for customers who prefer to use credit card payment. Managerial implications and recommendations were presented in addition to the study limitations and suggestions for future research.

Customer Satisfaction of Bangladesh Railway E-Ticketing System:

E-ticketing service is one of the most popular innovations in the rail transportation service. Considering the significance of the service, the study aims to explore customer satisfaction of the e-ticketing system of the Bangladesh Railway. It also investigates the gender perspective in regards to the service quality dimensions. A cross-sectional study was conducted among 361 respondents, followed by a quantitative approach. A structured questionnaire was used to survey the passengers from different railway stations in Dhaka City. The findings showed that the service quality indicators such as well customized website (ß= .130, p value< 0.05), ease of using the website (ß = .339, p value<0.05), ticket purchasing and website crash (ß = .162, p value< 0.05), web browsing security (ß = .150, p value< 0.05), NID & credit card payment security (ß = .186, p value< 0.05) have significant impact on customer satisfaction. Both Multivariate analysis of variances and discriminant analysis revealed that male and female customers have a significant variation in perception regarding user-friendliness and fulfilment dimension. Concentrating on the findings, the study has also suggested some implications to the government and the concerned organizations, such as enforcing gender-sensitive policy (reserved compartments for women in railway service) to increase female satisfaction of the e-ticketing service of Bangladesh Railway.

THE MAIN COMPONENTS OF THE MANAGEMENT SYSTEM FOR THE BANKING BUSINESS

The article reveals the peculiarities of the functioning of the mechanism for managing the development of the banking business and identifies its main components. Based on scientific approaches, it was found that the mechanism of managing the development of banking business is a mutually agreed set of methods, tools and levers used in the management of the bank to effectively organize its operation, which will promote the bank's development and greater profits. The division of banking management methods with the principle of division of the object into administrative, economic, socio-psychological and legal, which is followed by most scientists in the field of management allowed to propose a classification of management methods of banking and divide them into financial and non-financial. This approach allows you to show where and how to apply financial influence on the development of the banking business. To ensure the achievement of goals, as finance is the main object of management and a source of profit and risk. A certain component of the mechanism for managing the development of banking business, along with methods of managing the development of banking business are tools that are defined as means of certain forms of information that confirm monetary or other rights or obligations and have legal form and are used by the bank to operate effectively. profit. A clear division of banking business development management tools into three groups is proposed, namely payment (payment card, payment order, promissory note, account and others); financial (loans, deposits, securities, bank guarantee, interest rate, reserves and others); legal (bank charter, orders of the head, instructions, letters of instruction and others). Substantiation of the mechanism of management of development of banking business in the course of research has allowed to define levers of management of development of banking business as its integral component as it is set of economic means which the bank uses in the course of the activity for effective organization of its functioning by creation of favorable conditions. and tasks that will contribute to the development of the bank and its greater profits. The levers for managing the development of the banking business are divided into three groups: economic levers; organizational; social.

THE CURRENT STATE OF FUNCTIONING OF NATIONAL PAYMENT SYSTEMS

The article presents the theoretical aspects of the payment system, clarifies the definition of the national payment system of a complex and interconnected set of payment and technical elements, each of which contributes to the efficient functioning of both the financial sector and the national economy as a whole. The classification features according to which payment systems are classified are generalized and their types are given. The main tasks of payment systems functioning are outlined. The components of the payment system of Ukraine are considered. It is proved that the non-cash payment system is designed to minimize the cost of issuing cash and reduce the cost of its maintenance, collection, and recalculation. It is highlighted that the main purpose of creating payment systems is to reduce the cash supply. The modern basic requirements to payment systems are defined. The current payment systems in Ukraine are analyzed, among which: the national electronic payment system (EPS), created by the National Bank of Ukraine, the National Payment System “Ukrainian Payment Space”, 10 intrabank payment systems, 2 money transfer systems, 11 money transfer systems, 1 system settlements and 1 card system created by non-banking institutions, as well as 8 money transfer systems and 4 card payment systems created by non-residents, as well as international payment systems, which include 5 money transfer systems created by Ukrainian banks and 4 money transfer systems created by non-banking institutions . The current state of operations of Ukrainian banks with electronic money is studied. The basic requirements for national payment systems are given. Measures to increase the level of security of the national payment system of Ukraine are outlined. Recommendations for the development of the electronic payment system of Ukraine are presented. Special attention needs to be paid to the development of the national payment system of Ukraine, which depends on the effectively implemented innovations, which consist in the application and expansion of non-cash forms of payment and guarantee of the electronic payment system.