Student at Desh Bhagat University, Mandi Gobindgarh.

1. Data Quality &
Applications of Data Mining in
Banking Sector
Submitted To: Prof. Vivek Bhambri
Group Name: Information Management
Group Members: Nardeep Singh, Manpreet Singh,
Jaspreet Singh, Jasvir Singh,
( Gurjeet Singh, Sarbjeet Singh)DBU

2. Data Quality
• Data Quality is Perception or an assessment of
data’s fitness to serve it’s Purpose in a given
context.
• Data Quality is affected by the way
data is entered, stored and managed.

3. Aspects of Data Quality
• Accuracy
• Completeness
• Update Status
• Accessibility

4. Data Mining
• Data Mining is the process of collecting large
amounts of raw data and transforming that
data into useful information.
• it is a powerful new technology with great
potential to analyze important information in
the data warehouse.

5. Why use Data Mining
• Two main reason to use data mining:
 Too much data and too little information.
 There is need to extract useful information from the
data and to interpret the data.

6. Application of Data Mining in Banking
• Marketing
• Risk Management
• Customer Relation Management
• Customer Acquisition and Retention.

7. Application in Marketing
• Objective:
Improve Marketing Techniques and target
Customers.
• Traditional Application:
Customer Segmentation
Cross Selling
Attrition Analysis

8. Customer Segmentation:
• Segmentation is made more complex because
customer may belong to multiple segments.
• Identify the characteristics of the customers
who buy the same product from your
company.
• Predict which customer are likely to leave your
company and go to competitor.

9. Cross Selling
• Cross selling is one of the easiest and most
effective method of marketing.
• Cross selling is when the customer comes up
to buy something and we sell completely a
different product to offer customers.
• Cross selling generally occurs when the sales
representatives has more than one type of
products.

10. Attrition Analysis
• Attrition analysis basically include the reason
for leaving the job like salary, boss problem
and other issue.
• Attrition is the reduction in the number of
employs through resignation, retirement and
death.

11. Risk Management
• Risk management is the study of how to
control the risk.
• Object:
Reduce risk in Credit Portfolio.
• Types of Risk in Banking Sector:
Credit Risk
Market Risk
Operational Risk

12. Credit Risk
• Credit Risk involves Borrower risk, industry
risk, Portfolio Risk.
• It also known as default Risk which checks the
ability of an industry or a customer.
• Credit Risk is one of the most fundamental
type of the risk. After all it represent the
chance the investor loss his investment.

13. Market Risk
• Market Risk is the risk of losses in positions
arising from movements in markets place.
• Types of Market Risk:
• Interest rate Risk
• Currency Risk
• Commodity Risk.

14. Operational Risk
• Operational Risk is the risk of change in value
caused by the fact that actually losses or failed
internal process and system.
• It can also include other classes of risk such as
fraud, security, privacy, protection, legal risk,
physical or environmental risk.
• It is different from the expected losses.

15. Customer Relation Management
• Customer Relation management is a widely
implemented strategy for managing a
Bank/Company’s interaction within the
customer and clients.
• The Overall goal are to find, attract and win
new clients.
• Customer being asset to any industry, one
planning to work as a part of customer
service.

16. The Basic needs of a Customer
• We all have various needs which we do give importance.
• Since customers are our assets we need to take care of their every
need. Most basic needs are:
• Friendliness: Customer require Friendliness, they want us to treat
them equal just like a friend.
• Empathy: it follows up with understanding, on the latter, both work
relatively together. customer require attention from us because
they are here in our organization to get a product and no to waste
time. They need us to feel their need. Thus empathy play a vital role
in customer relation management.
• Information: Yes, customers are here in our organization with quite
much knowledge about the product that we offer. If we are not up
to their expectations regarding the information part of the service ,
we are in some trouble because there is very less chance for the
customer to stay and invest.

17. How to managed the angry Customers?

18. • One of the worst feelings which gets ignited
out is anger as it makes the person as well as
the surrounding uncomfortable.
Stay Calm
Listen
Ask Question
Take full control

19. Customer Acquisition and Retention
• Objective:
Increasing value of Customer and Customer
Retention.
• Traditional Applications:
Needs of Customer by Providing Product and
Service.
Help us to find loyal customer.
Need to accomplish relation between bank and
customer.

20. Building Blocks:
Acquisition
Conversion
Retention

21. Acquisition
• How do you attract your customers?
• How they are going to use it first time?
• There are three main channels through which
someone can find your site.
They find it themselves.
They find out through the media.
They find it from friends.

22. Customer Conversion
• Customer acquisition and conversion are
equally important, even thought each have
different focus.
• In this Converting means How effective are
you in converting users to customers?
• Conversion action plans concentrate on
turning “lookers” into paying customers.

23. Customer Retention
• An assessment of the product or service
quality provided by a business that measure
how loyal it’s customers are.
• Customer Retention is a cost-effective and
profitable business strategy.
• Successful customer retention starts with the
first contact and continue through the entire
lifetime of the relationship.

24. Conclusion
• Data Mining is a tool enable better decision
making throughout the banking.
• Data Mining Technique can be very helpful to
the bank for better targeting and acquiring
new Customers.
• Analysis of the Customer.