The Mining Data Mart - Data Mining Techniques in CRM: Inside Customer Segmentation - page 137

THE MINING DATA MART FOR RETAIL BANKING
The main purpose of the retail banking mining data mart is to provide rapid access
to pre-summarized information that can cover specific mining as well as marketing
and reporting needs, including:
• Development of data mining models and procedures.
• Reporting and monitoring of KPIs.
• Extraction and evaluation of campaign lists.
A time period of two years is proposed as a time frame for the data mart
in order to support most data mining applications, including segmentation and
predictive modeling.
In terms of the customer attributes covered, the retail banking data mart
should cover, as a minimum, the following information:
• Registration and socio-demographic information of each customer.
• Product mix (ownership) and product utilization (product balances) over the
time period covered and information on the evolution of the customer's portfolio.
• Frequency (number) and volume (amount) of transactions by type (credit, debit,
withdrawal, deposit, etc.) and channel (ATM, branch, web banking, etc.).
• For the specific case of credit cards, frequency and volume of purchases by type
(one-off, installments, etc.) and category of merchant.
• Credit score and arrears history.
• Information on the profitability of each customer over the time period covered.
• History of applications for purchasing products, application sources, and results
(approvals, declines, etc.).
• Campaign contacts and responses.
• Recorded complaints and complaint outcomes.
• Current and past status of each customer (active, inactive, dormant, etc.) and
status transitions over the time period covered.
• Core segmentation information for each customer (business, affluent, mass,
etc.), where available, and information on segment migrations.
The proposed data mart for retail banking which is presented below has
been designed bearing in mind the minimum information requirements for the
most common analytical needs. It incorporates information at a customer and
product account level and covers most aspects of the customer's relationship with
the bank.