Value-Based Allocation Strategy for Banking Facilities: Leveraging Big Data and Machine Learning to Optimize the Customer-Bank Relationship

Vakili, Masoumeh; Shayannia, Seyed Ahmad; Rahmaty, Maryam; Radfar, Reza

Value-Based Allocation Strategy for Banking Facilities: Leveraging Big Data and Machine Learning to Optimize the Customer-Bank Relationship

Articles in Press

Document Type : The scientific research paper

Authors

Masoumeh Vakili ¹

Seyed Ahmad Shayannia ²

Maryam Rahmaty ³

Reza Radfar ⁴

¹ Department of Information Technology Management, SR.C., Islamic Azad University, Tehran, Iran.

² Department of Industrial Management, Fi.C., Islamic Azad University, Firoozkooh, Iran.

³ Department of Management, Cha.C., Islamic Azad University, Chalus, Iran.

⁴ Department of Industrial Management, SR.C., Islamic Azad University, Tehran, Iran.

Abstract

In the era of smart marketing and big data, the ability of banks to accurately identify customers and optimally allocate financial resources is a key factor for increasing organizational confidence and productivity. This research focuses on designing an intelligent big data-based banking facility allocation model that aims to go beyond simply reducing risk and move towards maximizing the value of eligible customers. Using existing financial and credit records, K-Means clustering was first used to separate customers into three distinct risk-taking groups (low, medium, high risk). Then, a Random Forest model with a prediction accuracy of 96% was used to accurately assess the risk profile of each cluster. The main innovation of the research lies in the allocation stage, where a hybrid optimization method including Analytic Hierarchy Process (AHP) and Particle Swarm Algorithm (PSO) was used to optimize the loan allocation parameters. The results show that this hybrid approach not only significantly reduces credit risk, but also improves the overall efficiency of the bank by intelligently directing resources towards profitable sectors. This model provides a powerful tool for making accurate credit decisions, based on customer value, and in line with the strategic marketing goals of banks.

Keywords

Intelligent model

bank lending

big data

machine learning

analytic hierarchy process

Subjects

Strategic

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