Effectiveness of Data Mining in Non-Banking Industry: A Case Study

Abstract

The non-banking financial sector faces lots of challenges associated with non-bank funding, nowadays there are many risks related to microfinance in the non-bank financial sector, we face several cases where customers do not repay most of the microfinance amount or default which causes huge losses. Making choices about the approval of microfinance requests carries a significant amount of risk. In this paper, we study the data mining technique and its usefulness in the non-banking sector. Until we reach satisfactory proportions to estimate the success of projects for the company provided for funding and avoiding default to predict the likely microfinance defaulters.