Customer retention and credit risk analysis using ANN, SVM and DNN

Abstract

Nowadays, the banking sector are facing various challenges such as customer retention, fraud detection, risk management and customer segmentation. It can be possible to find solutions to these problems with the help of data analytics and machine learning (ML). In this paper, we have proposed a model which provides the solution to problems of the banking sector for customer retention and credit risk analysis. We used supervised learning techniques namely artificial neural network (ANN), support vector machine (SVM) and deep neural network (DNN) to analyse bank customer data. In order to analyse the algorithms we have used German credit dataset to evaluate the customer retention and credit risk. The experimental result shows that the using ANN, SVM and DNN algorithms, we could able to to reach recognition accuracy of 98%, 92% and 97% respectively for bank customer data and 72%, 72% and 76% for German credit dataset. The proposed method provides an efficient solution for retention and credit risk analysis of bank customers, which improves the profit of the banks by retaining the customers.