A fuzzy mathematical programming approach for cross-sell optimization in retail banking

Authors:
Tarun Bhaskar;Ramasubramanian Sundararajan;Puthu G. Krishnan
Affiliations:
Computing & Decision Sciences, GE Global Research, Bangalore, India;Computing & Decision Sciences, GE Global Research, Bangalore, India;Computing & Decision Sciences, GE Global Research, Bangalore, India
Venue:
AIAP'07 Proceedings of the 25th conference on Proceedings of the 25th IASTED International Multi-Conference: artificial intelligence and applications
Year:
2007

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Abstract

In this paper we discuss the mailer selection problem in retail banking. Mailer selection takes estimates of several parameters (like response probability of a customer, expected volume, expected profit from a customer etc.) and decides on the list of customers to whom the offer should be sent such that a certain set of business objectives are met/optimized. We discuss some of the issues (unreliable estimates and computational complexity) related to the mailer selection process and propose solution to the problems. We propose a fuzzy mathematical programming technique to take care of the imprecise estimates of the parameters. The imprecise parameters and constraints are represented as triangular fuzzy numbers. We use a simple example to demonstrate the method.