<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper explores the pros and cons of different algorithm models on the same selection problem, and then uses the combined prediction theory to obtain a new combined prediction model to explore its prediction accuracy. The actual problem to be solved is to help financial institutions to scientifically classify customers who choose financial products. We select the bank data set in the UCI database, which is derived from the survey data of a customer conducted by a financial institution in Portugal for a wealth management product. Decision tree C5.0 algorithm, naive Bayes classification algorithm and binary logit model are individually used to carry out a single model of empirical research on financial product customer classification. Through the empirical analysis of the five combination models, it is concluded that in the model that uses the least squares weighting method to determine the weight, the weight appears negative, which does not conform to the actual situation. The model that is based on the least squares weighting method and the model that is based on the simple weighting method are excluded. In contrast, the arithmetic mean weighted model is better than the reciprocal variance weighted model and the reciprocal mean square model. The accuracy reaches 89.91%, which is 0.43% higher than the accuracy of a single model. It can be concluded that the model that is based on the arithmetic average weighting is a better combination forecasting model.</p>
</abstract>

This paper explores the pros and cons of different algorithm models on the same selection problem, and then uses the combined prediction theory to obtain a new combined prediction model to explore its prediction accuracy. The actual problem to be solved is to help financial institutions to scientifically classify customers who choose financial products. We select the bank data set in the UCI database, which is derived from the survey data of a customer conducted by a financial institution in Portugal for a wealth management product. Decision tree C5.0 algorithm, naive Bayes classification algorithm and binary logit model are individually used to carry out a single model of empirical research on financial product customer classification. Through the empirical analysis of the five combination models, it is concluded that in the model that uses the least squares weighting method to determine the weight, the weight appears negative, which does not conform to the actual situation. The model that is based on the least squares weighting method and the model that is based on the simple weighting method are excluded. In contrast, the arithmetic mean weighted model is better than the reciprocal variance weighted model and the reciprocal mean square model. The accuracy reaches 89.91%, which is 0.43% higher than the accuracy of a single model. It can be concluded that the model that is based on the arithmetic average weighting is a better combination forecasting model.

Financial customer classification by combined model

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Financial customer classification by combined model"}

This paper explores the pros and cons of different algorithm models on the same selection problem, and then uses the combined prediction theory to obtain a new...

Financial customer classification by combined model

Publié en ligne: 31 mai 2022

Pages: 431 - 446

Reçu: 14 janv. 2022

Accepté: 24 mars 2022

DOI: https://doi.org/10.2478/amns.2021.2.00198

Mots clés
combined forecasting, classification algorithm, financial products

© 2023 Cong Lin et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Fig. 1

Financial customer classification by combined model

Publié en ligne: 31 mai 2022

Pages: 431 - 446

Reçu: 14 janv. 2022

Accepté: 24 mars 2022

DOI: https://doi.org/10.2478/amns.2021.2.00198

Mots cléscombined forecasting, classification algorithm, financial products

© 2023 Cong Lin et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Fig. 1

Mots clés
combined forecasting, classification algorithm, financial products