In this notebook, I analyzed a dataset of Personal Financial Risk.
The main objective of this project is to create visualizations that will help readers understand personal financial risk.
To meet the defined objective, I explored the dataset by answering the following questions:
- What's the
sum of loan based on education level and risk rating - What's the
average of debt-to-income ratio grouped by employment status and risk rating - What's the
average assets based on educational level and risk rating - What's the
proportion of high financial risk rating by age band - What's the
proportion of low financial risk rating by age band - What's the
distribution of DTI Ratio by high & low risk ratings
These are insights that obtained in this project:
- People who have high total loan amount and assets tend to have a low financial risk rating.
- The average of Debt-to-Income Ratios are almost identical across all age groups, regardless of whether individuals are unemployed, self-employed, or employed.
- Age band 45-59 has the highest proportion on high financial rating by 31%
- Age band 30-44 has the highest proportion on low financial rating by 32%
- DTI ratio doesn't affect risk rating
Recommendation
Individuals needs to increase their total assets and learn to manage their loan, so they can generate more revenue which can lead to decrease their financial risk rating.