Commercial Banking Data Mining

Big Data and Advanced

Analytics in Banking: A

multimil l ion Rupees Revenue

Opportunity

D A T A

MINING

How advance analytics are redefining banking

Exploratory data analysis of loan customers’ characteristics

• 5000 observations with 14 variables

• What combination of parameters makes a customer more likely to accept a personal loan.

Personal Loan

People with high credit card spending

and income take Loan

Person with low income

and Credit Card spending does not take loan

Among Loan takersPeople with 2 family member

have highest income

People with 4 family member

have lowest income

People with 1 family member has lowest

CC spending

People with 3 family member has

highest CC spending

Effect of CC spending and Family size on Loan

Among loan takers

Personal Loan

Personal LoanOnline Banking

Personal LoanOnline Banking

Cred

it Ca

rd S

pend

ing

Education Level

Income

Reference

• Kalender, Burcu: Analysis of loan customers’ characteristics, Data Mining Project, 2008

Prepared by: yashrajlamsal@gmail.com