To utilize machine learning algorithms to segment customers based on their financial behavior and characteristics.
To identify and understand customer segments that have distinct needs, preferences, and levels of profitability.
To investigate the effectiveness of using machine learning for customer segmentation in the finance industry.
Collect and clean financial data related to customers, including transaction history, credit scores, and demographic information.
Apply clustering algorithms such as k-means or hierarchical clustering to segment customers into distinct groups.
Evaluate the performance of the clustering algorithms using metrics such as silhouette score and inertia.
Analyze the characteristics of each customer segment to identify key differences and similarities.
Develop personalized marketing strategies and product recommendations for each customer segment based on their unique needs and preferences.
