Banking customer churn prediction using random forest based on Smote and Adasyn approach

Customer Churn is now becoming a significant problem in the banking sector. It is necessary to seek solutions to predict the rate of customer churn in banks; however, the dataset for customer churn prediction in banks is imbalanced. In this paper, Random Forest (RF) based on two popular resampling techniques, named SMOTE and ADASYN, are used to obtain a banking customer churn prediction model. A wide range of metrics, including Accuracy, Recall, Precision, Specificity, F1 score, Mathews correlation coefficient, and ROC-AUC, are used to comprehensively evaluate the prediction model. Through the experimental results, the values of Accuracy and ROC-AUC of the RF model based on SMOTE and ADASYN indicate positive results. Moreover, this paper also shows feature importance in the dataset based on the RF algorithm.

Authors

Publication Details

Journal
Journal of Development and Integration
Published
2024-10-31
DOI
https://doi.org/10.61602/jdi.2024.78.11
Citations
1
Primary Topic
Customer churn and segmentation
Type
article
Field-Weighted Citation Impact
0.44
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article

Banking customer churn prediction using random forest based on Smote and Adasyn approach

Cong Thanh Tran
1 citations
Journal of Development and Integration
Customer churn and segmentation
0.44
article

Banking customer churn prediction using random forest based on Smote and Adasyn approach

Cong Thanh Tran
article en
1 citations

Abstract

Customer Churn is now becoming a significant problem in the banking sector. It is necessary to seek solutions to predict the rate of customer churn in banks; however, the dataset for customer churn prediction in banks is imbalanced. In this paper, Random Forest (RF) based on two popular resampling techniques, named SMOTE and ADASYN, are used to obtain a banking customer churn prediction model. A wide range of metrics, including Accuracy, Recall, Precision, Specificity, F1 score, Mathews correlation coefficient, and ROC-AUC, are used to comprehensively evaluate the prediction model. Through the experimental results, the values of Accuracy and ROC-AUC of the RF model based on SMOTE and ADASYN indicate positive results. Moreover, this paper also shows feature importance in the dataset based on the RF algorithm.

Journal of Development and Integration(78)
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Openalex Percentile: Top 26%
Customer churn and segmentation
0.44
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