Bank Card Customer Segmentation Systems Analysis And Design

With the gradual profit reducing of traditional businesses, commercial banks pay more and more attention to develop intermediary business. Nowadays, the banking card business is the most important business and the main profit source of commercial banks in western countries. Chinese commercial banks' banking card business has been started late. Being restricted by various factors, there is still large gap between domestic commercial banks and foreign ones. The competition of domestic banking card market is becoming fiercer and fiercer. On one hand, after China's entry into the WTO, the foreign commercial banks are expanding their business in Chinese by developing their banking card business at first. On the other hand, after the establishment of Chinaunionpay (CUP) Inc., the CUP banking cards can be used through various commercial banks in China. Capturing this opportunity, many small commercial banks in China are beginning to develop their banking card businesses.The main problem of local banking card industry is that these issuing banks' ideas are behind the time. They always regard banking card as an electronic from deposit book, which raise money for the credit business. Being guided by this thought, these local issuing banks just pursued the growth of the number of issued banking card, without segment their customers. As a result, the cardholders are not positive to use their banking cards, which don't meet their demands well. Additionally, lacking of customer segmentation, the credit card business of local issuing banks is running high risks.In developed countries, most of these issuing banks put great emphasis on the analysis of customer data. With the development of statistics, artificial intelligence technology and information technology, more and more issuing banks utilize the data mining technology to find valuable knowledge in their huge amount of data, and use the results to supply their decisions. By segmenting their customers, they design proper banking card and carry out customer relationship management. Besides, they can control the risk more effectively. Therefore, to enhance their competition, domestic issuing banks must change their ideas and segment their customers. So far some domestic issuing banks have taken some customer segmentation strategies, making use of experience of foreign issuers. However, domestic issuing banks still lack of a set of tools that segment customers objectively and scientifically.The science and technology bureau of the people's bank of China organized the research work of the "electronic bank simulation system". The purpose of this research is to develop scientifically, objectively computerized customer analysis and risk-valuing system by utilizing information technology, statistics and artificial intelligence technology. This research was undertaken by the experimental center of the People's Bank of China and has passed the final examination and acceptance in October 2003. The author of this thesis was fortunate to participate in the research work and was assigned to the work of analyzing and designing the banking customer segmentation subsystem. During the research, the research team went to the Agricultural Bank of China (ABC) Sichuan branch for survey. The author used the data mining tool of SAS—Enterprise Miner to mine the practical customer data from ABC Sichuan branch. Based on the data mining process, the author designed and developed the banking card customer system. All of these is the background of this thesis.This thesis is composed of four chapters. In the first chapter, the author analyzed the necessity of customer segmentation of issuing banks. Firstly, it introduced the basic concept and classifies of banking card, then reviewed the development history of Chinese banking card industry. After that, the theory of customer segmentation was introduced simply, together with the significance and standard of banking card customer segmentation analyzed. Finally the author summarized the customer segmentation of domestic and...