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A Machine Learning Approach for Predicting Bank Customer Behavior in the Banking Industry

A Machine Learning Approach for Predicting Bank Customer Behavior in the Banking Industry
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Author(s): Siu Cheung Ho (The Hong Kong Polytechnic University, Hong Kong), Kin Chun Wong (The Hong Kong Polytechnic University, Hong Kong), Yuen Kwan Yau (The Hong Kong Polytechnic University, Hong Kong)and Chi Kwan Yip (The Hong Kong Polytechnic University, Hong Kong)
Copyright: 2022
Pages: 23
Source title: Research Anthology on Machine Learning Techniques, Methods, and Applications
Source Author(s)/Editor(s): Information Resources Management Association (USA)
DOI: 10.4018/978-1-6684-6291-1.ch063

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Abstract

Currently, Chinese commercial banks are facing extremely tremendous pressure, including financial disintermediation, interest rate marketization, and internet finance. Meanwhile, increasing financial consumption demand of customers further intensifies the competition among commercial banks. Hence, it is very important to store, process, manage, and analyze the data to extract knowledge from the customer to predict their investment direction in future. Customer retention and fraud detection are the main information for the bank to predict customer behavior. It may involve the privacy data and sensitive data of the customer. Data security and data protection for the machine learning prediction is necessary before data collection. The research is focused on two parts: the first part is data security of machine learning and second part is machine learning prediction. The result is to prove the data security for the machine learning is important. Using different machining learning analysis tool to enhance the performance and reliability of machine learning applications, the customer behavior prediction accuracy can be enhanced.

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