Publicação
Customer Churn Prediction in Portuguese Banking Sector: Using a Machine Learning Approach
| Resumo: | This study focuses on developing a predictive model for customer churn in a Portuguese bank, using machine learning techniques. Following the CRISP-DM methodology, the analysis encompasses comprehensive EDA, data preparation and visualizations, laying the foundation for model selection. Whitin the subset of evaluated models, such as tree-based and ensembled models, Gradient Boosting emerges as a standout performer, demonstrating notable predictive capabilities. Beyond the identification of customers at risk to churn, this model provides valuable insights, crafting proactive retention strategies. The precision in identifying customers with a high probability of churn enhances informed decision-making. For that reason, an interactive dashboard is developed to empower stakeholders in addressing potential churn risks. These findings underscore the importance of leveraging machine learning in banking scenarios, emphasizing the potential for predictive analytics to enhance customer retention strategies and overall business outcomes. |
|---|---|
| Autores principais: | Pires, Inês Tomás |
| Assunto: | Banking Sector Business Intelligence Customer Churn Machine Learning Power BI SDG 8 - Decent work and economic growth SDG 9 - Industry, innovation and infrastructure |
| Ano: | 2024 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | This study focuses on developing a predictive model for customer churn in a Portuguese bank, using machine learning techniques. Following the CRISP-DM methodology, the analysis encompasses comprehensive EDA, data preparation and visualizations, laying the foundation for model selection. Whitin the subset of evaluated models, such as tree-based and ensembled models, Gradient Boosting emerges as a standout performer, demonstrating notable predictive capabilities. Beyond the identification of customers at risk to churn, this model provides valuable insights, crafting proactive retention strategies. The precision in identifying customers with a high probability of churn enhances informed decision-making. For that reason, an interactive dashboard is developed to empower stakeholders in addressing potential churn risks. These findings underscore the importance of leveraging machine learning in banking scenarios, emphasizing the potential for predictive analytics to enhance customer retention strategies and overall business outcomes. |
|---|