Commercial Bank Personal Customer Segmentation Based On Data Mining, Systems Analysis And Design,

Over recent years, with the change of the management environment of Chinese commercial bank and foreign banks entering the Chinese market after the china's entry into WTO, the competition pressure the domestic banks faced are heavier. The focus of the competition is the customers, in particle, the high-quality customers who can make high profits for the bank. Based on the principle of "20%/80%", the high-quality customers of bank who are made up of the 20 percent of bank customers bring the bank 80 percent of profits. Then, the high-quality customers are the source of bank profit. When the center of market is switching from the bargainer to the purchaser, the bank need know its customers, classify its customers, search its target customers, and confirm its target markets. The bank need develop its product to satisfy different customers .It may provide more special product for its high-quality customers. Only in this way, the limited resource of bank can produce the greatest utility.It is the main trend to develop personal financial transaction for modern banks. In the western developed country, personal financial transaction becomes the leading products and important income source of a lot of large commercial banks. Over recent years, the Chinese capital market develops rapidly; the market development of a lot of traditional business slows down; the banking industry needs to open up the new development space in the field of personal financial transaction. With the development of the Chinese capital market, residents' propensity to save is weakened progressively, the propensity to investment and idea of managing money modernly is strengthening. They demand more diversified, individualized financial service. This has created the wide development space for personal financial transaction of commercial banks. The personal financial transaction market of our country willbecome the important field that the foreign banks fight for after we joining the WTO. The foreign banks have abundant personal financial products and marketing experience, strong adaptive capacity of market and financial innovation ability. It will bring the enormous challenge to the personal financial transaction development of domestic banks. The implementation of the personal financial transaction competition strategy of commercial bank must regard customer as the center. With the economic development and improvement of the financial market, personal customer demand is more complicated. This require us must subdivide personal customer, develop the new products to suit different customer. Especially, commercial bank should offer the more suitable management of personal money service to personal high-quality customers. Only in this way, the Chinese commercial bank could survive and develop in the fierce market competition.To Chinese commercial banks, the reasons for them to use the theory of customer segmentation in their management and administration lie in :(1) customer segmentation is inevitable request of implementing the customer service manager system. (2) customer segmentation is inevitable request of optimizing the resource distribution of the bank. (3) customer segmentation is inevitable request of promoting the internal reform of the bank .(4) customer segmentation is necessary request of knowing the competition rivals and hitting out voluntarily (5) customer segmentation is necessary request of increasing benefit of bank managing and realizing maximum of bank's value. (6) customer segmentation establishes the differentiation advantage of commercial bank.Chinese commercial banks use information technology for many years. They have a large number of customers' transaction de history data, service data and basic information in its database. The data are the valuable wealth of commercial bank. If we cannot profoundly mining and comprehensively utilize the data, the data would be wasted. At the same time, the commercial banks cannot know the behaviors and demands of customers, cannot judge objectively the value in customer, and...