A Review: Application of Data Mining Tools in CRM for Selected Banks

Today ,Banks to survive and grow it becomes critical to manage customers, build and maintain a healthy relationship with customers. Data Mining in Banks can play a significant role for customer relationship Management. The areas in which Data mining Tools can be used in the banking industry are customer segmentation, Banking profitability, credit scoring and approval, Predicting payment from Customers, Marketing, detecting fraud transactions, Cash management and forecasting operations, optimising stock portfolios, and ranking investments. Various Data Mining techniques for data modeling are Association, Classification, Clustering, Forecasting, Regression, Sequence discovery Visualization etc. Some examples of some widely used data mining algorithms are Association rule, Decision tree, Genetic algorithm, neural networks, k-means algorithm, and Linear/logistic regression. This paper reviews some Data Mining tools and its application in Banks for Customer Relationship Management.