PowerPoint Presentation

Synchrony FinancialResponse to the Financial Crisis

Synchrony Financial110 million open accounts Eight decades providing customers with credit and financing solutions Largest provider of private label credit cards in the US 200,000 partners in retail, manufacturing, buying groups and associations Focus on creating stronger engagement between buyers and brands Tools and technologies proprietary analytics and tailored loyalty programs

Improve upon current applicant risk evaluationDecrease default rateImprove consumer relationshipsIncrease ROIDecrease capital losses

Our Goals

Current StateSynchrony Financial default rate = 30%

What is a Random Forest?An ensemble of decision treesAccurate with supervised learning situationsEfficient when working with large data setsEasy to build, tune, and adjustAllows us to identify most important variables

Pilot Results 133 defaults per 575 loans or 23.13% default rateBut is it a good fit?

But can we do better?

Pilot ModificationWhy modify?Decrease over-fittingRemove highly correlated variablesGoals:Eliminate variables that could skew resultsIdentify variables (applicant characteristics) to look forEnsure our model fits well and is useful

Modification Results

Most Important Variable?

ConclusionsAnonymityImproved accuracyIncreased ROIIncreased relationships

Thank you.