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Banking Behavioral Clustering

Objective

Apply unsupervised machine-learning strategies to cluster banking customers by their demographics and financial behavior (using PCA and KMeans).

Determine customer segmentation, by:

  • Demographics (using only the twm_customer table)
  • Banking behavior (using engineered features from all available data)

Approach

  1. Clean data and engineer features for clustering (numpy, pandas)
  2. Use KMeans to find 3-5 clusters per category: demographics, banking behavior
  3. Reduce dimensions for plotting with PCA

TODO

  1. Visualize results by plotting clusters in 2D radar charts
  2. Present findings and insights on clustered groups.

Presentation

Google slides

Data

Financial transaction data from here.
The data contains following tables:

  • twm_customer - information about customers
  • twm_accounts - information about accounts
  • twm_checking_accounts - information about checking accounts (subset of twm_accounts)
  • twm_credit_accounts - information about checking accounts (subset of twm_accounts)
  • twm_savings_accounts - information about checking accounts (subset of twm_accounts)
  • twm_transactions - information about financial transactions
  • twm_savings_tran - information about savings transactions (subset of twm_transactions)
  • twm_checking_tran - information about savings transactions (subset of twm_transactions)
  • twm_credit_tran - information about credit checking (subset of twm_transactions)

About

Analysis of banking customers. Applying unsupervised: PCA & K-means to cluster customers by behavior and demographics.

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