Application of clustering for customer segmentation in private banking

Xuan Yang; Jin Chen; Pengpeng Hao; Yanbo J. Wang

doi:10.1117/12.2197182

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6 July 2015 Application of clustering for customer segmentation in private banking

Xuan Yang, Jin Chen, Pengpeng Hao, Yanbo J. Wang

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Proceedings Volume 9631, Seventh International Conference on Digital Image Processing (ICDIP 2015); 96311Z (2015) https://doi.org/10.1117/12.2197182
Event: Seventh International Conference on Digital Image Processing (ICDIP15), 2015, Los Angeles, United States

Abstract

With fierce competition in banking industry, more and more banks have realised that accurate customer segmentation is of fundamental importance, especially for the identification of those high-value customers. In order to solve this problem, we collected real data about private banking customers of a commercial bank in China, conducted empirical analysis by applying K-means clustering technique. When determine the K value, we propose a mechanism that meet both academic requirements and practical needs. Through K-means clustering, we successfully segmented the customers into three categories, and features of each group have been illustrated in details.

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Xuan Yang, Jin Chen, Pengpeng Hao, and Yanbo J. Wang "Application of clustering for customer segmentation in private banking", Proc. SPIE 9631, Seventh International Conference on Digital Image Processing (ICDIP 2015), 96311Z (6 July 2015); https://doi.org/10.1117/12.2197182

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