IDEAS home Printed from https://ideas.repec.org/p/isc/iscwp2/bruwp1306.html
   My bibliography  Save this paper

A data mining approach for bank telemarketing using the rminer package and r tool

Author

Listed:
  • Sérgio Moro
  • Paulo Cortez
  • Raul M. S. Laureano

Abstract

Due to the global financial crisis, credit on international markets became more restricted for banks, turning attention to internal clients and their deposits to gather funds. This driver led to a demand for knowledge about client’s behavior towards deposits and especially their response to telemarketing campaigns. This work describes a data mining approach to extract valuable knowledge from recent Portuguese bank telemarketing campaign data. Such approach was guided by the CRISP-DM methodology and the data analysis was conducted using the rminer package and R tool. Three classification models were tested (i.e., Decision Trees, Naïve Bayes and Support Vector Machines) and compared using two relevant criteria: ROC and Lift curve analysis. Overall, the Support Vector Machine obtained the best results and a sensitive analysis was applied to extract useful knowledge from this model, such as the best months for contacts and the influence of the last campaign result and having or not a mortgage credit on a successful deposit subscription.

Suggested Citation

  • Sérgio Moro & Paulo Cortez & Raul M. S. Laureano, 2013. "A data mining approach for bank telemarketing using the rminer package and r tool," Working Papers Series 2 13-06, ISCTE-IUL, Business Research Unit (BRU-IUL).
    • Handle: RePEc:isc:iscwp2:bruwp1306
    as

    Download full text from publisher

    File URL: http://bru-unide.iscte.pt/RePEc/pdfs/13-06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Geoffrey M. Hodgson, 2019. "The great crash of 2008 and the reform of economics," Chapters, in: Jonathan Michie (ed.), The Handbook of Globalisation, Third Edition, chapter 28, pages 439-456, Edward Elgar Publishing.
    2. Andrea Gerali & Stefano Neri & Luca Sessa & Federico M. Signoretti, 2010. "Credit and Banking in a DSGE Model of the Euro Area," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(s1), pages 107-141, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:zbw:bofrdp:2016_016 is not listed on IDEAS
    2. Hollander, Hylton & Liu, Guangling, 2016. "Credit spread variability in the U.S. business cycle: The Great Moderation versus the Great Recession," Journal of Banking & Finance, Elsevier, vol. 67(C), pages 37-52.
    3. Mădălin Viziniuc, 2017. "Potential Gains from Cooperation Between Monetary and Macroprudential Policies: The Case of an Emerging Economy," Eastern European Economics, Taylor & Francis Journals, vol. 55(5), pages 420-452, September.
    4. Christian Schoder & Remzi Baris Tercioglu, 2024. "A climate-fiscal policy mix to achieve Türkiye’s net-zero ambition under feasibility constraints," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 21(2), pages 331-359, April.
    5. Darracq Pariès, Matthieu & Kühl, Michael, 2016. "The optimal conduct of central bank asset purchases," Working Paper Series 1973, European Central Bank.
    6. Roland Meeks & Benjamin Nelson & Piergiorgio Alessandri, 2017. "Shadow Banks and Macroeconomic Instability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 49(7), pages 1483-1516, October.
    7. Albonico, Alice & Paccagnini, Alessia & Tirelli, Patrizio, 2017. "Great recession, slow recovery and muted fiscal policies in the US," Journal of Economic Dynamics and Control, Elsevier, vol. 81(C), pages 140-161.
    8. Kollmann, Robert & Enders, Zeno & Müller, Gernot J., 2011. "Global banking and international business cycles," European Economic Review, Elsevier, vol. 55(3), pages 407-426, April.
    9. Yépez, Carlos A., 2018. "Financial intermediation and real estate prices impact on business cycles: A Bayesian analysis," The North American Journal of Economics and Finance, Elsevier, vol. 45(C), pages 138-160.
    10. Alexandra Born & Zeno Enders, 2019. "Global Banking, Trade, and the International Transmission of the Great Recession," The Economic Journal, Royal Economic Society, vol. 129(623), pages 2691-2721.
    11. Romain Houssa & Jolan Mohimont & Chris Otrok, 2019. "A model for international spillovers to emerging markets," Working Paper Research 370, National Bank of Belgium.
    12. Carlos A. Arango & Oscar M. Valencia, 2015. "Macro-Prudential Policy under Moral Hazard and Financial Fragility," Borradores de Economia 878, Banco de la Republica de Colombia.
    13. Paolo Angelini & Laurent Clerc & Vasco Cúrdia & Leonardo Gambacorta & Andrea Gerali & Alberto Locarno & Roberto Motto & Werner Roeger & Skander Van den Heuvel & Jan Vlček, 2015. "Basel III: Long-term Impact on Economic Performance and Fluctuations," Manchester School, University of Manchester, vol. 83(2), pages 217-251, March.
    14. Arruda Gustavo & Lima Daniela & Teles Vladimir Kühl, 2020. "Household borrowing constraints and monetary policy in emerging economies," The B.E. Journal of Macroeconomics, De Gruyter, vol. 20(1), pages 1-21, January.
    15. Vo Le & Kent Matthews & David Meenagh & Patrick Minford & Zhiguo Xiao, 2014. "Banking and the Macroeconomy in China: A Banking Crisis Deferred?," Open Economies Review, Springer, vol. 25(1), pages 123-161, February.
    16. Boscá, J.E. & Doménech, R. & Ferri, J. & Méndez, R. & Rubio-Ramírez, J.F., 2020. "Financial and fiscal shocks in the great recession and recovery of the Spanish economy," European Economic Review, Elsevier, vol. 127(C).
    17. Brzoza-Brzezina, Michał & Kolasa, Marcin & Makarski, Krzysztof, 2017. "Monetary and macroprudential policy with foreign currency loans," Journal of Macroeconomics, Elsevier, vol. 54(PB), pages 352-372.
    18. Jean-Christophe Poutineau & Gauthier Vermandel, 2015. "Quelle prise en compte des caractéristiques nationales dans les mesures macroprudentielles en zone euro ?," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 95-141.
    19. Bratsiotis, George J. & Theodoridis, Konstantinos, 2022. "Precautionary liquidity shocks, excess reserves and business cycles," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 77(C).
    20. Emma Tredgett & Alex Coad, 2015. "The shaky start of the UK Small Business Research Initiative (SBRI) in Comparison to the US Small Business Innovation Research Programme (SBIR)," Management Working Papers 10, Birkbeck Department of Management, revised Jun 2015.
    21. Albonico, Alice & Tirelli, Patrizio, 2020. "Financial crises and sudden stops: Was the European monetary union crisis different?," Economic Modelling, Elsevier, vol. 93(C), pages 13-26.

    More about this item

    Keywords

    Telemarketing; Direct Marketing; Long-Term Deposits; Data Mining; CRISP-DM; Classification Problem; Banking; R.;
    All these keywords.

    JEL classification:

    • C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isc:iscwp2:bruwp1306. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henrique Monteiro (email available below). General contact details of provider: https://edirc.repec.org/data/uisctpt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.