1. Business Problem
A retail banking institute needed a clear risk visualization framework to monitor credit default rates, loan grade distributions, and interest margin yields. Credit risk committees required interactive scenario parameters to model non-performing loan (NPL) exposure under economic downturns.
2. Project Objectives
- Build an interactive Tableau credit risk dashboard mapping total funded amounts against default rates.
- Calculate Level of Detail (LOD) expressions to isolate customer debt-to-income (DTI) ratio bands.
- Design parameter controls to simulate interest rate changes and loan loss provisioning.
3. Dataset Information
Financial loan dataset comprising 38,000+ borrower loan accounts:
- Loan Identifiers: Loan ID, Issue Date, Loan Amount, Interest Rate, Term (36 vs 60 Months).
- Borrower Profile: Grade / Sub-Grade, Employment Length, Annual Income, DTI Ratio.
- Risk Indicators: Loan Status (Fully Paid, Charged Off, Current), Total Rec Principal, Total Rec Interest.
4. Tools Used
Tableau Desktop 2023
LOD Expressions (FIXED, INCLUDE)
Tableau Parameter Controls
Banking & Risk
5. Data Cleaning & Transformation
Executed in Tableau Prep Builder & Calculated Fields:
1. Parsed term strings ('36 months' -> integer 36).
2. Grouped DTI ratios into 5% risk buckets.
3. Built Calculated Field for Non-Performing Loan Rate:
SUM(IF [Loan Status] = 'Charged Off' THEN [Loan Amount] ELSE 0 END) / SUM([Loan Amount])
6. Key Performance Indicators (KPIs)
$435.8M
Total Funded Amount
13.8%
Default / Charge-Off Rate
12.02%
Average Portfolio Interest Rate
7. Dashboard Interface Showcase
8. Strategic Financial Risk Insights
Finding 1: Grade E & F Risk Concentration
Borrowers in Grade E and F with 60-month terms accounted for 34% of total charged-off principal, despite comprising only 11% of total issuing volume.
9. Strategic Recommendations
- Increase credit underwriting scrutiny for 60-month applicants with DTI ratios above 20%.
- Adjust loan loss reserve provisions upward by 1.8% to hedge against charged-off balances.
10. Technical Challenges
Ensuring smooth parameter interaction across multiple dashboard tabs was achieved by setting FIXED Level of Detail calculations independent of quick filters.
11. Lessons Learned
Using Tableau parameter controls empowers non-technical credit risk officers to conduct real-time scenario modeling effortlessly.
12. GitHub Repository
Tableau Public & GitHub Repository
View calculated fields and workbook documentation on GitHub.
13. Downloads & Resources
14. Related Analytics Case Studies
