Exploratory Data Analysis (EDA) Summary
Report Template
1. Introduction
This document presents an exploratory analysis of Geldium’s dataset, aimed at
evaluating data integrity, uncovering valuable insights, and identifying factors that
contribute to the risk of credit default. The primary objective is to prepare the data for
accurate predictive modeling and risk evaluation.
2. Dataset Summary
The dataset includes 500 customer records from Geldium, each containing essential
features related to credit delinquency. It comprises both numerical and categorical
data, such as earnings, credit usage, number of missed installments, and the ratio of
debt to income.
Important details:
Total entries: 500
Major attributes: Age, Income, Credit Score, Credit Utilization, Missed
Payments, Debt-to-Income Ratio
Data types:
o Categorical: Employment Status, Credit Card Type
o Numerical: Income, Loan Balance
3. Missing Data Evaluation
There are missing entries in crucial variables, especially in the income and loan
balance fields. If left untreated, these gaps could distort model accuracy.
Observations:
Fields with missing data:
o Income: 50 missing entries
o Loan Balance: 30 missing entries
Planned solutions:
o Use the median to fill missing numeric values
o Apply AI-generated synthetic data where appropriate for Loan Balance
4. Key Insights and Risk Factors
The analysis indicates a strong link between high credit utilization and delinquency,
as well as a clear risk associated with frequent missed payments.
Important insights:
Customers using more than 50% of their credit limit tend to be at greater risk.
Individuals with 3 or more missed payments within six months show a higher
likelihood of defaulting.
Some inconsistencies were observed: high-income customers with low credit
scores warrant further examination.
5. Role of AI & GenAI
Generative AI tools supported the identification of trends, detection of missing
values, and examination of risk elements. These AI-based conclusions were
compared against established financial risk metrics for validation.
Sample AI queries:
"Summarize data trends and highlight missing values."
"Assess risk of default based on credit usage and payment behavior."
6. Conclusion & Future Actions
This EDA uncovered meaningful insights into Geldium’s dataset, highlighting missing
entries, behavioral patterns tied to credit risk, and some outlier cases worth deeper
analysis.
Takeaways:
Data gaps: Missing income and loan data could influence outcomes.
Delinquency indicators: High credit usage and repeated missed payments are
strong predictors.
Data anomalies: Cases of high income but low credit scores need clarification.
Recommendations:
Choose suitable imputation techniques for missing income and loan values to
minimize bias.
Confirm if key risk factors remain consistent across various customer groups.
Investigate irregular data entries to ensure accuracy and detect potential
financial instability.
These efforts will aid Geldium in refining its risk analysis processes and enhance
data reliability for further modeling.
