Identify potential customers who have higher probability

Assignment Help Other Subject

Reference no: EM133958676

Background of the project:

AllLife Bank is a US bank that has a growing customer base. The majority of these customers are liability customers (depositors) with varying sizes of deposits. The number of customers who are also borrowers (asset customers) is quite small, and the bank is interested in expanding this base rapidly to bring in more loan business and in the process, earn more through the interest on loans. In particular, the management wants to explore ways of converting its liability customers to personal loan customers (while retaining them as depositors).

A campaign that the bank ran last year for liability customers showed a healthy conversion rate of over 9% success. This has encouraged the retail marketing department to devise campaigns with better target marketing to increase the success ratio.

You as a Data scientist at AllLife bank have to build a model that will help the marketing department to identify the potential customers who have a higher probability of purchasing the loan. Get AI-free online assignment help from experienced academic experts.

Objective
To predict whether a liability customer will buy a personal loan or not.
Which variables are most significant.
Which segment of customers should be targeted more.

Data Dictionary
* ID: Customer ID
* Age: Customer's age in completed years
* Experience: #years of professional experience
* Income: Annual income of the customer (in thousand dollars)
* ZIP Code: Home Address ZIP code.
* Family: the Family size of the customer
* CCAvg: Average spending on credit cards per month (in thousand dollars)
* Education: Education Level. 1: Undergrad; 2: Graduate;3: Advanced/Professional
* Mortgage: Value of house mortgage if any. (in thousand dollars)
* Personal_Loan: Did this customer accept the personal loan offered in the last campaign?
* Securities_Account: Does the customer have securities account with the bank?
* CD_Account: Does the customer have a certificate of deposit (CD) account with the bank?
* Online: Do customers use internet banking facilities?
* CreditCard: Does the customer use a credit card issued by any other Bank (excluding All life Bank)?

Reference no: EM133958676

Questions Cloud

Was the civil war avoidable : Was the Civil War avoidable?

Which presidents policy aligns with your political beliefs : Which president's policy aligns with your political beliefs? Explain.

Should it change its priorities to provide more services : Texas has always prided itself for being a low tax, low service state. Should it change its priorities to provide more services?

What latin-americans have contributed to our history : What Latin-Americans have contributed to our history? What amazed and surprised you by what you've learned?

Identify potential customers who have higher probability : Build a model that will help the marketing department to identify the potential customers who have a higher probability of purchasing the loan

Explain how ancient romans use its flag : Explain how ancient romans use its flag.

Proactive security measures assessment : TECH2400 Introduction to Cyber Security, kaplan business school How to configure them to meet security objectives - Separate the screenshots per objective

Implementation of a standardised reporting system : HI6037 Business Analytics Fundamentals, Holmes Institute - Explain the key benefits of implementing a standardized approach to reporting within an organisation

Create schema ddl statements to build your database : HI5033 Database Design, Holmes Institute - create Schema DDL statements to build your database. Your tables should include all appropriate primary and foreign

User Account

All Pages