Synthetic Data — Generating Customer Journeys in the Mortgage Lifecycle

Creating artificial customer events in the home loan repayment tenure (Part 1/3)

AI Generated

Part 1: Generating synthetic customer journeys for mortgage payments.
Part 2: Next Best Action — Optimizing Long-term Marketing Communications using Markov Decision Process
Part 3: Next Best Action — Learn an optimal policy for maximizing mortgage collection

Synthetic data is a powerful tool for data scientists and researchers who need to work with data that is not available or accessible in the real world. It is artificially generated data that mimics the characteristics and patterns of real data but does not contain any sensitive or personal information. In most cases, it is used for experimenting before substantial real data is captured.

One of the main advantages of synthetic data is that it can overcome the limitations and challenges of real data, such as privacy, security, cost, availability, and quality. For example, synthetic data can be used to create realistic scenarios and simulations that would be difficult or impossible to obtain with real data, such as rare events, extreme cases, or future projections. It can also be used to augment and enrich real data, such as adding noise, diversity, or complexity to improve the robustness and generalization of machine learning models.

However, as a researcher, you must often have an exhaustive list of customer pathways and know the different business strategies that were implemented in the past for synthetic data to capture all the nuances and variations of real data. If designed carefully and evaluated for quality, this process can reduce biases or errors that could affect the validity and reliability of the results.

In this article I’m going to show you how you can create customer journey events in the context of a home loan lifecycle.

Understand the business objective

In an effort to differentiate themselves from their competitors, many banks and financial services companies are currently engaged in an intense battle to create experiences that are quicker, smarter, and more appropriately…