Data Science Solution Development for the Fintech Sector

Merchant recognition solution based on ML

leverx group

Merchant recognition solution based on ML

Customer

Data collection service company.

CHALLENGE

Insufficiency of data for the attraction of relevant audiences and maintenance of the desired level of customer retention.

SOLUTION

Data science application based on machine learning that allows banks to extract valuable data about merchants for its further analysis, which results in stronger strategy-building.

Emerline was involved in the development of a data science solution aimed at providing European banks with detailed, categorized information about the use of their products — debit and credit cards. The goal was to establish a mechanism that would automatically detect valuable information for banks about merchants based on payments of their customers and then split this data into categories. In this way, a bank would be able to determine who are their key merchants and receive insights into their customer behavior and accompanying risks.

Our team was responsible for the creation of the ML algorithms that would ensure the extraction of this data:

Merchant’s URL scoring based on different criteria
Extraction of valid information
Product recognition
Merchant categorization accompanying risks.

The process of categorization had to be built with respect to the list of categories provided by the client.

One more challenge was to optimize the process of URL scoring in the way to make it as closely as possible to how humans select websites when browsing for information.

Solution’s Description

Leverx Group works with companies and organizations to address the complex challenges of today's business world. Each of our partners is an experienced, innovative, and proven leader in their respective fields.

Automotive

SAP PLM is a solid basis for the automotive industry. This solution helps digitize and automate manufacturing processes and work more efficiently with suppliers and partners.

Aerospace & Defense

The solution allows aerospace and defense companies to reduce the time to market for innovations without compromising safety while simulating innovation scenarios along a complex value chain.

Food & Beverage

SAP PLM provides the food & beverage industry with all the required technologies that help to develop sustainable, traceable, high-quality products within a shorter time.

Consumer Goods

With SAP PLM, this industry can exceed the diverse expectations of consumers and enable sustainably and profitably growth for the business.

Pharma

SAP PLM helps to make pharmaceutical production more effective and with lower risk.

Key Features

Automotiveffff

SAP PLM is a solid basis for the automotive industry. This solution helps digitize and automate manufacturing processes and work more efficiently with suppliers and partners.

Aerospace & Defense

The solution allows aerospace and defense companies to reduce the time to market for innovations without compromising safety while simulating innovation scenarios along a complex value chain.

Food & Beverage

SAP PLM provides the food & beverage industry with all the required technologies that help to develop sustainable, traceable, high-quality products within a shorter time.

Consumer Goods

With SAP PLM, this industry can exceed the diverse expectations of consumers and enable sustainably and profitably growth for the business.

Pharma

SAP PLM helps to make pharmaceutical production more effective and with lower risk.

The principle of how the delivered solution works can be described as follows:

A customer makes a purchase with a debit or credit card.
Brief information about the purchase (where it took place, what’s the name of a merchant, MCC code, etc.) goes to the bank.
From a banking server, the info transfers to the server of the data science solution we worked on.
Servers browse for the merchant’s information to define with the help of machine learning what products or services the merchant provides.
In accordance with the extracted data, the solution determines related to the merchant categories and sends this information to the bank.

Technologies Used

Merchant classification

Gensim
Doc2vec
tf-idf
logistic regression

URL Scoring

XGBoost
LightGBM
Log Regression
Optuna

Product recognition

Default Python
Numpy

Document Management

Document Release
Material Master Release and Extension
Sales Order Release
Manufacturing Instruction Release

Request Management

Procurement Request
Tooling Change Request
Shop Floor Issue Request
Customer Issue Request
Plant Maintenance Work Request
Request for Quote

Promptly addressing challenges during the development, including those related to invalid URLs and compiling a list of products for system recognition, our team provided the client with a well-thought-out solution that allows gathering important to banks information about their customer behavior and merchants. Having such a system at hand, the client can strengthen their position on the market of data collection service providers, offering it to banks for the extraction of useful insights.