Financial institutions use time series analysis to detect patterns of financial behavior relevant to credit granting. Let's understand how this works in different aspects:
Identifying long-term trends
One of the main benefits is its ability to identify financial trends and italy mobile database with time series that repeat or vary over time. This is essential, especially when it comes to customer income and payment patterns.
By analyzing a customer's financial history, financial institutions can assess whether their income is growing, stagnating or declining. This comprehensive view allows them to more accurately predict their ability to pay , even in situations where income fluctuates.
For example, if a client has a variable income, but the history shows a general growth trend, the institution may conclude that, despite the fluctuations, the client still has a good capacity to honor his financial commitments.