Novel Distributed Approach for Next Best Offer using XGboost

Product recommendations have become integral to business development and customer engagement strategies. While traditional techniques like market basket analysis are effective in retail, they are insufficient for the financial sector due to the diversity of banking products and the lack of direct dependency among them. This research paper proposes a novel distributed framework for developing an automated recommendation system leveraging XGBoost to predict banking product purchases based on categorized customer profiles. The framework integrates distributed computing technologies such as Hadoop for data storage and PySpark for scalable data processing. The system classifies customers into distinct categories based on their transaction history, demographic attributes, and banking behaviors to deliver personalized product suggestions. Model performance is evaluated using metrics such as the ROC curve, precision, recall, and F1-score. Empirical results demonstrate the system’s effectiveness in enhancing lead generation, targeting high-potential customers, and improving customer satisfaction in real-world financial markets.