An integrated data mining and behavioral scoring model for analyzing bank customers

Analyzing bank databases for customer behavior management is difficult since bank databases are multi-dimensional, comprised of monthly account records and daily transaction records. This study proposes an integrated data mining and behavioral scoring model to manage existing credit card customers in a bank. A self-organizing map neural network was used to identify groups of customers based on repayment behavior and recency, frequency, monetary behavioral scoring predicators. It also classified bank customers into three major profitable groups of customers. The resulting groups of customers were then profiled by customer’s feature attributes determined using an Apriori association rule inducer. This study demonstrates that identifying customers by a behavioral scoring model is helpful characteristics of customer and facilitates marketing strategy development. q 2004 Elsevier Ltd. All rights reserved.