Enhancing Customer Retention: A Federated Machine Learning Framework for Banking Churn Prediction

Customer attrition has become the significant challenge for the bank, making large volume of customers to migrate to other banks, as the banks keeps providing multiple benefits to the incoming customers. The loss due to migration of the existing customer to the competitive bankers creates the banking churn, means of loss of customer relationship with the bank, and affects the development, business and the profitability of the corresponding bank. It is essential to predict the banking churn with a primary objective of retaining the customers, considered as a critical task. To achieve this objective, banking sectors employ the customer behavioral analysis to determine the rate of customer churn, resulting in incorrect diagnosis of the churn rate. To over this concern, this research manuscript proposes a novel federated Machine Learning (ML) framework for the prediction of the customer churn, directly contributes for the enhancement of the customer retention. This proposed novel framework offers significant advancements for the banking prediction on customer retention, thus provides an accurate tool for the analysis of customer relationships. The proposed prediction framework is analyzed in terms of accuracy, precision, recall, F1 score and the performance is compared with the state of the art prediction methodologies.