Creditworthiness system with k-means model based z-score

Abstract

Evaluation of the creditor’s ability needs to be done before the debtor provides the loan. The purpose of system design in this study is to establish a creditworthiness system by implementing K-Mean based Z-Score. The method of system design that used in this research is Rational Unified Process (RUP). The case study of those research is in the Savings and Loans Cooperative (KSP) at Junior High School 1st Cileunyi, Bandung. K-Means method-based Z-Score is used by the author as a model for solving problems, wherein the author uses three clusters with four parameters that applied to the method. Based on the results of the experiments, the application can classify prospective credits into three groups based on the four parameters. Those three groups among others: “OK” as many as 37 members, “Warning” as many as 28 members and “Bad” as many as 5 members. The results of those groups are used as a credit recommendation to the KSP.