# Towards Financially Inclusive Credit Products Through Financial Time Series Clustering

arXiv: https://arxiv.org/abs/2402.11066 · HTML: https://mlsanity.com/paper/2402.11066/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 12 of its 26 references that are in the map.
- First posted on arXiv 16 Feb 2024.

## Builds on (most cited first, 12 of 12)

- [Deep Residual Learning for Image Recognition](https://mlsanity.com/paper/1512.03385/) (2015)
- [Auto-Encoding Variational Bayes](https://mlsanity.com/paper/1312.6114/) (2013)
- [UMAP: Uniform Manifold Approximation and Projection for Dimension Reduction](https://mlsanity.com/paper/1802.03426/) (2018)
- [Unsupervised Deep Embedding for Clustering Analysis](https://mlsanity.com/paper/1511.06335/) (2015)
- [Deep learning for time series classification: a review](https://mlsanity.com/paper/1809.04356/) (2018)
- [Time Series Classification from Scratch with Deep Neural Networks: A Strong Baseline](https://mlsanity.com/paper/1611.06455/) (2016)
- [ROCKET: Exceptionally fast and accurate time series classification using random convolutional kernels](https://mlsanity.com/paper/1910.13051/) (2019)
- [Deep Clustering via Joint Convolutional Autoencoder Embedding and Relative Entropy Minimization](https://mlsanity.com/paper/1704.06327/) (2017)
- [Deep Temporal Clustering : Fully Unsupervised Learning of Time-Domain Features](https://mlsanity.com/paper/1802.01059/) (2018)
- [Relational Autoencoder for Feature Extraction](https://mlsanity.com/paper/1802.03145/) (2018)
- [RTFN: A Robust Temporal Feature Network for Time Series Classification](https://mlsanity.com/paper/2011.11829/) (2020)
- [Clustering of Bank Customers using LSTM-based encoder-decoder and Dynamic Time Warping](https://mlsanity.com/paper/2110.11769/) (2021)

## Abstract (arXiv)

Financial inclusion ensures that individuals have access to financial products and services that meet their needs. As a key contributing factor to economic growth and investment opportunity, financial inclusion increases consumer spending and consequently business development. It has been shown that institutions are more profitable when they provide marginalised social groups access to financial services. Customer segmentation based on consumer transaction data is a well-known strategy used to promote financial inclusion. While the required data is available to modern institutions, the challenge remains that segment annotations are usually difficult and/or expensive to obtain. This prevents the usage of time series classification models for customer segmentation based on domain expert knowledge. As a result, clustering is an attractive alternative to partition customers into homogeneous groups based on the spending behaviour encoded within their transaction data. In this paper, we present a solution to one of the key challenges preventing modern financial institutions from providing financially inclusive credit, savings and insurance products: the inability to understand consumer financial behaviour, and hence risk, without the introduction of restrictive conventional credit scoring techniques. We present a novel time series clustering algorithm that allows institutions to understand the financial behaviour of their customers. This enables unique product offerings to be provided based on the needs of the customer, without reliance on restrictive credit practices.