Performance Comparison of the Invasive Weed Optimization K-Means Algorithm with Particle Swarm Optimization K-Means for Banking Data

Banking produces extensive and diverse data, so a clustering process is needed to understand customer behavior patterns and transactions more effectively. This clustering has been widely utilized with the K-Means algorithm due to its simplicity and efficiency. However, this algorithm is limited in determining the optimal cluster center, affecting the accuracy of the clustering results. This study proposes applying two metaheuristic algorithms, Invasive Weed Optimization (IWO) and Particle Swarm Optimization (PSO), as additional solutions combined with K-Means. These two algorithms were chosen because of their ability to find global solutions and convergence speed to handle large and complex banking data. The results show the superiority of IWOKM compared to PSOKM in terms of SSE and DBI. From the SSE value, IWOKM produces a lower value (3029.77), which indicates that this method is better at minimizing clustering errors and producing more accurate clustering than PSOKM (80007.09). From the DBI value, IWOKM also produces a better value (1.6684) than PSOKM (1.6782), which shows that the clusters produced by IWOKM are more compact and more separated. However, in terms of computation time, PSOKM is more efficient, with a faster average computation time. Although IWOKM produces better clustering quality, PSOKM offers advantages in terms of processing speed. This finding confirms that the selection of the IWO algorithm is more appropriate for use on datasets with characteristics such as the German Credit Dataset.