Classification of Bank Customers by Data Mining: a Case Study of Mellat Bank branches in Shiraz
This research predicts through studying significant factors in customer relationship management and applying data mining in bank. Financial institutions and other firms in competitive market need to follow proper understanding of customer behavior. Customers’ data are analyzed to identify specific o...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Mashhad: Behzad Hassannezhad Kashani
2016-08-01
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| Series: | International Journal of Management, Accounting and Economics |
| Subjects: | |
| Online Access: | https://www.ijmae.com/article_115376_c149c9bf58ecc2f83dea4717eb7a7fb9.pdf |
| _version_ | 1797690373740429312 |
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| author | Dariush Farid Hojjatollah Sadeghi Elahe Hajigol Nadiya Parirooy |
| author_facet | Dariush Farid Hojjatollah Sadeghi Elahe Hajigol Nadiya Parirooy |
| author_sort | Dariush Farid |
| collection | DOAJ |
| description | This research predicts through studying significant factors in customer relationship management and applying data mining in bank. Financial institutions and other firms in competitive market need to follow proper understanding of customer behavior. Customers’ data are analyzed to identify specific opportunities and investment, to classify and predict the behaviors; further, data are eventually used for decision-making. Therefore, data mining as knowledge exploring (discovery) approach plays a significant role through a variety of algorithms. This study classifies bank customers by using decision tree algorithm. Three decision tree models including ID3, C4.5, and CART were applied for classifying and finally for prediction. Results of simple sampling method and k-fold cross validation show that forecast accuracy of C4.5 decision tree using simple sampling was higher than other models. Thus, predicting customers’ behavior through C4.5 decision tree was considered the ideal prediction for bank. |
| first_indexed | 2024-03-12T01:58:42Z |
| format | Article |
| id | doaj.art-d296331e6fe84f449c86b7bf14607396 |
| institution | Directory Open Access Journal |
| issn | 2383-2126 |
| language | English |
| last_indexed | 2024-03-12T01:58:42Z |
| publishDate | 2016-08-01 |
| publisher | Mashhad: Behzad Hassannezhad Kashani |
| record_format | Article |
| series | International Journal of Management, Accounting and Economics |
| spelling | doaj.art-d296331e6fe84f449c86b7bf146073962023-09-07T21:56:25ZengMashhad: Behzad Hassannezhad KashaniInternational Journal of Management, Accounting and Economics2383-21262016-08-0138534543115376Classification of Bank Customers by Data Mining: a Case Study of Mellat Bank branches in ShirazDariush Farid0Hojjatollah Sadeghi1Elahe Hajigol2Nadiya Parirooy3Associate Professor, Faculty of Economics, Management and Accounting, University of Yazd, Yazd, IranAssistant Professor, Faculty of Economics, Management and Accounting, University of Yazd, Yazd, IranIndustrial PhD, University of Yazd, Yazd, IranMaster of Business Administration Financial trends Yazd University, Yazd, IranThis research predicts through studying significant factors in customer relationship management and applying data mining in bank. Financial institutions and other firms in competitive market need to follow proper understanding of customer behavior. Customers’ data are analyzed to identify specific opportunities and investment, to classify and predict the behaviors; further, data are eventually used for decision-making. Therefore, data mining as knowledge exploring (discovery) approach plays a significant role through a variety of algorithms. This study classifies bank customers by using decision tree algorithm. Three decision tree models including ID3, C4.5, and CART were applied for classifying and finally for prediction. Results of simple sampling method and k-fold cross validation show that forecast accuracy of C4.5 decision tree using simple sampling was higher than other models. Thus, predicting customers’ behavior through C4.5 decision tree was considered the ideal prediction for bank.https://www.ijmae.com/article_115376_c149c9bf58ecc2f83dea4717eb7a7fb9.pdfvalidationdata miningdecision treecustomer relationship management |
| spellingShingle | Dariush Farid Hojjatollah Sadeghi Elahe Hajigol Nadiya Parirooy Classification of Bank Customers by Data Mining: a Case Study of Mellat Bank branches in Shiraz International Journal of Management, Accounting and Economics validation data mining decision tree customer relationship management |
| title | Classification of Bank Customers by Data Mining: a Case Study of Mellat Bank branches in Shiraz |
| title_full | Classification of Bank Customers by Data Mining: a Case Study of Mellat Bank branches in Shiraz |
| title_fullStr | Classification of Bank Customers by Data Mining: a Case Study of Mellat Bank branches in Shiraz |
| title_full_unstemmed | Classification of Bank Customers by Data Mining: a Case Study of Mellat Bank branches in Shiraz |
| title_short | Classification of Bank Customers by Data Mining: a Case Study of Mellat Bank branches in Shiraz |
| title_sort | classification of bank customers by data mining a case study of mellat bank branches in shiraz |
| topic | validation data mining decision tree customer relationship management |
| url | https://www.ijmae.com/article_115376_c149c9bf58ecc2f83dea4717eb7a7fb9.pdf |
| work_keys_str_mv | AT dariushfarid classificationofbankcustomersbydataminingacasestudyofmellatbankbranchesinshiraz AT hojjatollahsadeghi classificationofbankcustomersbydataminingacasestudyofmellatbankbranchesinshiraz AT elahehajigol classificationofbankcustomersbydataminingacasestudyofmellatbankbranchesinshiraz AT nadiyaparirooy classificationofbankcustomersbydataminingacasestudyofmellatbankbranchesinshiraz |