Developing a prediction model for customer churn from electronic banking services using data mining

Abbas Keramati (), Hajar Ghaneei () and Seyed Mohammad Mirmohammadi ()
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Abbas Keramati: University of Tehran
Hajar Ghaneei: Payame Noor University
Seyed Mohammad Mirmohammadi: Payame Noor University

Financial Innovation, 2016, vol. 2, issue 1, 1-13

Abstract: Abstract Background Given the importance of customers as the most valuable assets of organizations, customer retention seems to be an essential, basic requirement for any organization. Banks are no exception to this rule. The competitive atmosphere within which electronic banking services are provided by different banks increases the necessity of customer retention. Methods Being based on existing information technologies which allow one to collect data from organizations’ databases, data mining introduces a powerful tool for the extraction of knowledge from huge amounts of data. In this research, the decision tree technique was applied to build a model incorporating this knowledge. Results The results represent the characteristics of churned customers. Conclusions Bank managers can identify churners in future using the results of decision tree. They should be provide some strategies for customers whose features are getting more likely to churner’s features.

Keywords: Customer churn; Data mining; Electronic banking services; Decision tree; Classification (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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DOI: 10.1186/s40854-016-0029-6

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