Deon Strydom
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Improved Banking Customer Retention Prediction Based on Advanced Machine Learning Models Linda Wahyu Widianti; Adhitio Satyo Bayangkari Karno; Hastomo, Widi; Aryo Nur Utomo; Dodi Arif; Indra Sari Kusuma Wardhana; Deon Strydom
Indonesian Journal of Information Systems Vol. 7 No. 2 (2025): February 2025
Publisher : Program Studi Sistem Informasi Universitas Atma Jaya Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24002/ijis.v7i2.10364

Abstract

The quick growth of the banking sector is reflected in the rise in the number of banks. In addition to the intense competition among banks for new customers, efforts to keep existing ones are essential to minimizing potential losses for the company. To ascertain whether customers will leave the bank or remain customers, this study will employ churn forecasts. A 1,750,036-customer demographic dataset, which includes data on bank customers who have left or are still customers, is used in the training process to compare five machine learning technology models in order to investigate the improvement of binary classification prediction accuracy. These models are Decision Tree, Random Forest, Gradient Boost, Cat Boost, and Light Gradient Boosting Machine (LGBM). According to the study's results, LGBM performs better than the other four models since it has the highest recall and accuracy and the fewest False Negatives. The LGBM model's corresponding accuracy, precision, recall, f1 score, and AUC are 0.8789, 0.8978, 0.8553, 0.8758, and 0.9694. This demonstrates that, in comparison to traditional methods, machine learning optimization can produce notable advantages in churn risk classification. This study offers compelling proof that sophisticated machine learning modeling can revolutionize banking industry client retention management.
Improved Banking Customer Retention Prediction Based on Advanced Machine Learning Models Linda Wahyu Widianti; Adhitio Satyo Bayangkari Karno; Hastomo, Widi; Aryo Nur Utomo; Dodi Arif; Indra Sari Kusuma Wardhana; Deon Strydom
Indonesian Journal of Information Systems Vol. 7 No. 2 (2025): February 2025
Publisher : Program Studi Sistem Informasi Universitas Atma Jaya Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24002/ijis.v7i2.10364

Abstract

The quick growth of the banking sector is reflected in the rise in the number of banks. In addition to the intense competition among banks for new customers, efforts to keep existing ones are essential to minimizing potential losses for the company. To ascertain whether customers will leave the bank or remain customers, this study will employ churn forecasts. A 1,750,036-customer demographic dataset, which includes data on bank customers who have left or are still customers, is used in the training process to compare five machine learning technology models in order to investigate the improvement of binary classification prediction accuracy. These models are Decision Tree, Random Forest, Gradient Boost, Cat Boost, and Light Gradient Boosting Machine (LGBM). According to the study's results, LGBM performs better than the other four models since it has the highest recall and accuracy and the fewest False Negatives. The LGBM model's corresponding accuracy, precision, recall, f1 score, and AUC are 0.8789, 0.8978, 0.8553, 0.8758, and 0.9694. This demonstrates that, in comparison to traditional methods, machine learning optimization can produce notable advantages in churn risk classification. This study offers compelling proof that sophisticated machine learning modeling can revolutionize banking industry client retention management.