Data Mining: A Tool for the Enhancement of Banking Sector

Data mining is emerging as a very useful tool for providing valuable information from large databases and enabling managers and business executives to make hard core decisions in a much easier and effective manner. It is a process of analyzing the data from various perspectives and summarizing it into valuable information. This paper defines what data mining is and how does it works. It then focuses on the use of data mining in banking industry on various areas like market segmentation, direct mail marketing, customer churn, fraud detection and risk management.