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In banking data mining has played a significant role

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boots PLC and Bell Atlantic use data mining to carry out their operations. In banking, data mining has played a significant role of risk management such as credit scoring and credit risk assessment. Corestates Bank, and Bank of Montreal are good examples of companies in the banking industry that uses the technology of data mining to analyse customer and credit portfolio to mitigate credit risks and also monitor high risk accounts. Data mining is again important in customer acquisition. This is achieved through the use data mining tools that shows consumer responses through analysing their databases. Banks use the information from customer database to design marketing campaigns. The technology of data mining is also incorporated to bank call centres for customer representatives to be able to know which products are more relevant to callers. Another example of data mining usage is retention of customers. For example, Chase Manhattan Bank uses the technology to model customer churning hence coming up with value added services to the loyal customers. References Koh, H. C., & Gerry, C. K. L. (2002). Data mining and customer relationship marketing in the banking industry. Singapore Management Review , 24 (2), 1.
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