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Reseach Article

Customer Segmentation of Bank based on Data Mining ñ Security Value based Heuristic Approach as a Replacement to K-means Segmentation

by Shashidhar HV, Subramanian Varadarajan
International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
Volume 19 - Number 8
Year of Publication: 2011
Authors: Shashidhar HV, Subramanian Varadarajan
10.5120/2383-3145

Shashidhar HV, Subramanian Varadarajan . Customer Segmentation of Bank based on Data Mining ñ Security Value based Heuristic Approach as a Replacement to K-means Segmentation. International Journal of Computer Applications. 19, 8 ( April 2011), 13-18. DOI=10.5120/2383-3145

@article{ 10.5120/2383-3145,
author = { Shashidhar HV, Subramanian Varadarajan },
title = { Customer Segmentation of Bank based on Data Mining ñ Security Value based Heuristic Approach as a Replacement to K-means Segmentation },
journal = { International Journal of Computer Applications },
issue_date = { April 2011 },
volume = { 19 },
number = { 8 },
month = { April },
year = { 2011 },
issn = { 0975-8887 },
pages = { 13-18 },
numpages = {9},
url = { https://ijcaonline.org/archives/volume19/number8/2383-3145/ },
doi = { 10.5120/2383-3145 },
publisher = {Foundation of Computer Science (FCS), NY, USA},
address = {New York, USA}
}
%0 Journal Article
%1 2024-02-06T20:06:26.344162+05:30
%A Shashidhar HV
%A Subramanian Varadarajan
%T Customer Segmentation of Bank based on Data Mining ñ Security Value based Heuristic Approach as a Replacement to K-means Segmentation
%J International Journal of Computer Applications
%@ 0975-8887
%V 19
%N 8
%P 13-18
%D 2011
%I Foundation of Computer Science (FCS), NY, USA
Abstract

K-means segmentation algorithm can be applied to Customer Segmentation in Banks. If loan over-due amount of bank customers are normally distributed, then K-means can be used. In cases of significant outliers, K-means segmentation algorithm cannot be applied. In our proposed solution, bank loan customers are segmented based on security value and loan over-due amount. Proposed solution addresses segmentation issues on outliers and provides security value based heuristic approach as a replacement to K-means segmentation.

References
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Index Terms

Computer Science
Information Sciences

Keywords

Customer Segmentation K-means outliers Data Mining