Background and Context AllLife Bank has a growing customer base. Majority of these customers are liability customers (depositors) with varying size


Background and Context
AllLife Bank has a growing customer base. Majority of these customers are liability customers (depositors) with varying size of deposits. The number of customers who are also borrowers (asset customers) is quite small, and the bank is interested in expanding this base rapidly to bring in more loan business and in the process, earn more through the interest on loans. In particular, the management wants to explore ways of converting its liability customers to personal loan customers (while retaining them as depositors).
A campaign that the bank ran last year for liability customers showed a healthy conversion rate of over 9% success. This has encouraged the retail marketing department to devise campaigns with better target marketing to increase the success ratio with a minimal budget.
You as a Data scientist at AllLife bank has to build a model that willmarketing department to identify the potential customers who have higher probability of purchasing the loan. This will increase the success ratio while at the same time reduce the cost of the campaign.
Objective
To predict whether a liability customer will buy a personal loan or not.
Which variables are most significant.
Which segment of customers should be targeted more.
Data Dictionary
* ID: Customer ID
* Age: Customerâs age in completed years
* Experience: #years of professional experience
* Income: Annual income of the customer (in thousand dollars)
* ZIP Code: Home Address ZIP code.
* Family: the Family size of the customer
* CCAvg: Avg. spending on credit cards per month (in thousand dollars)
* Education: Education Level. 1: Undergrad; 2: Graduate;3: Advancedbusiness leaders [format – .ppt ****************/


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