The Research On CRM And DM Of The Individual Banking Business

With our nation's entry to WTO and the opening of financial market the Chinese banking industry will be surely facing drastic competition with foreign banks. So it is the necessary that the Chinese commercial banks implying new management theory and the information technology that is Customer Relationship Management (CRM) and Data Mining (DM) technology. The core thinking of CRM is the companies should take the customers and potentials as their most important resources, and do their every effort to build and improve the relationships with them, so that increase the customer lifetime values. Data Mining (DM) technology can get valuable knowledge from gigantic data sets, and it's a great weapon to solve the problem "rich in data, but lack of information". It can help the Chinese commercial banks to analyze the customers' data automatically and get interesting information to support their business decisions.This paper focuses on research of analytical CRM application in the commercial bank by using Data Warehouse and Data Mining in the fields of individual banking business application. At first, it was brought forward the architecture of CRM in the commercial bank and explained main technology of Analytical CRM. And then, it explains the function of the individual banking business CRM and the management system and the analytical system of customer's business in details. Moreover, the author has analyzed emphatically the customer's risk from the aspect of the credit of the customer of the personal housing loan and credit card customers. Finally, the author has studied an integrated data mining analysis the behavior of the existing credit card customers in a bank and presents a behavioral scoring model. The author classified bank customers into three major profitable groups of customers and identified the most important customer and found the association rule, depending it the managers can develop the better marketing strategy and control the credit risk. It enhances their core competition by implementing the CRM and using the technology of DM to create the new financial product and optimize the management decision of the commercial bank.