The uneven distribution of wealth and individual economic capacities are among the main forces, which shape modern societies and arguably bias the emerging social structures. However, the study of correlations between the social network and economic status of individuals is difficult due to the lack of large-scale multimodal data disclosing both the social ties and economic indicators of the same population. Here, we close this gap through the analysis of coupled datasets recording the mobile phone communications and bank transaction history of one million anonymized individuals living in a Latin American country. We show that wealth and debt are unevenly distributed among people in agreement with the Pareto principle; the observed social structure is strongly stratified, with people being better connected to others of their own socioeconomic class rather than to others of different classes; the social network appears to have assortative socioeconomic correlations and tightly connected 'rich clubs'; and that individuals from the same class live closer to each other but commute further if they are wealthier. These results are based on a representative, society-large population, and empirically demonstrate some long-lasting hypotheses on socioeconomic correlations, which potentially lay behind social segregation, and induce differences in human mobility.
Credit scoring is without a doubt one of the oldest applications of analytics. In recent years, a multitude of sophisticated classification techniques have been developed to improve the statistical performance of credit scoring models. Instead of focusing on the techniques themselves, this paper leverages alternative data sources to enhance both statistical and economic model performance. The study demonstrates how including call networks, in the context of positive credit information, as a new Big Data source has added value in terms of profit by applying a profit measure and profit-based feature selection. A unique combination of datasets, including call-detail records, credit and debit account information of customers is used to create scorecards for credit card applicants. Call-detail records are used to build call networks and advanced social network analytics techniques are applied to propagate influence from prior defaulters throughout the network to produce influence scores. The results show that combining call-detail records with traditional data in credit scoring models significantly increases their performance when measured in AUC. In terms of profit, the best model is the one built with only calling behavior features. In addition, the calling behavior features are the most predictive in other models, both in terms of statistical and economic performance. The results have an impact in terms of ethical use of call-detail records, regulatory implications, financial inclusion, as well as data sharing and privacy.
Mobile phone usage provides a wealth of information, which can be used to better understand the demographic structure of a population. In this paper we focus on the population of Mexican mobile phone users. Our first contribution is an observational study of mobile phone usage according to gender and age groups. We were able to detect significant differences in phone usage among different subgroups of the population. Our second contribution is to provide a novel methodology to predict demographic features (namely age and gender) of unlabeled users by leveraging individual calling patterns, as well as the structure of the communication graph. We provide details of the methodology and show experimental results on a real world dataset that involves millions of users.
It is commonly believed that patterns of social ties affect individuals' economic status. Here we translate this concept into an operational definition at the network level, which allows us to infer the economic well-being of individuals through a measure of their location and influence in the social network. We analyse two large-scale sources: telecommunications and financial data of a whole country's population. Our results show that an individual's location, measured as the optimal collective influence to the structural integrity of the social network, is highly correlated with personal economic status. The observed social network patterns of influence mimic the patterns of economic inequality. For pragmatic use and validation, we carry out a marketing campaign that shows a threefold increase in response rate by targeting individuals identified by our social network metrics as compared to random targeting. Our strategy can also be useful in maximizing the effects of large-scale economic stimulus policies.
Social network analytics methods are being used in the telecommunication industry to predict customer churn with great success. In particular it has been shown that relational learners adapted to this specific problem enhance the performance of predictive models. In the current study we benchmark different strategies for constructing a relational learner by applying them to a total of eight distinct call-detail record datasets, originating from telecommunication organizations across the world. We statistically evaluate the effect of relational classifiers and collective inference methods on the predictive power of relational learners, as well as the performance of models where relational learners are combined with traditional methods of predicting customer churn in the telecommunication industry.Finally we investigate the effect of network construction on model performance; our findings imply that the definition of edges and weights in the network does have an impact on the results of the predictive models. As a result of the study, the best configuration is a non-relational learner enriched with network variables, without collective inference, using binary weights and undirected networks. In addition, we provide guidelines on how to apply social networks analytics for churn prediction in the telecommunication industry in an optimal way, ranging from network architecture to model building and evaluation.
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