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Customer Churn Prediction for Banks

I. A bank wants to predict customer churn for its savings accounts to prevent balances from dropping below the minimum. II. The data provided includes customer demographics, bank relationships, and transaction history. III. The task is to use this data to predict each customer's propensity to churn, which is defined as their average balance falling below the minimum in the next quarter.

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Rahul Singh
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105 views2 pages

Customer Churn Prediction for Banks

I. A bank wants to predict customer churn for its savings accounts to prevent balances from dropping below the minimum. II. The data provided includes customer demographics, bank relationships, and transaction history. III. The task is to use this data to predict each customer's propensity to churn, which is defined as their average balance falling below the minimum in the next quarter.

Uploaded by

Rahul Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Project Problem Statement

Customer Churn Prediction:


A Bank wants to take care of customer retention for its product: savings accounts. The bank
wants you to identify customers likely to churn balances below the minimum balance. You have
the customers information such as age, gender, demographics along with their transactions with
the bank.
Your task as a data scientist would be to predict the propensity to churn for each customer.
Data Dictionary
There are multiple variables in the dataset which can be cleanly divided into 3 categories:
I. Demographic information about customers
 customer_id - Customer id
 vintage - Vintage of the customer with the bank in a number of days
 age - Age of customer
 gender - Gender of customer
 dependents - Number of dependents
 occupation - Occupation of the customer
 city - City of the customer (anonymized)
II. Customer Bank Relationship
 customer_nw_category - Net worth of customer (3: Low 2: Medium 1: High)
 branch_code - Branch Code for a customer account
 days_since_last_transaction - No of Days Since Last Credit in Last 1 year
III. Transactional Information
 current_balance - Balance as of today
 previous_month_end_balance - End of Month Balance of previous month
 average_monthly_balance_prevQ - Average monthly balances (AMB) in Previous
Quarter
 average_monthly_balance_prevQ2 - Average monthly balances (AMB) in previous to
the previous quarter
 current_month_credit - Total Credit Amount current month
 previous_month_credit - Total Credit Amount previous month
 current_month_debit - Total Debit Amount current month
 previous_month_debit - Total Debit Amount previous month

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Project Problem Statement

 current_month_balance - Average Balance of current month


 previous_month_balance - Average Balance of previous month
 churn - Average balance of customer falls below minimum balance in the next quarter
(1/0)

(Note: In the same downloaded folder, you can find the dataset (churn_prediction) for this
problem statement. Once you upload the final project, you will be able to download the project
solution (Final project solution.zip). This folder contains the Jupyter notebook file that contains
the solution to this final project problem statement.)

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