Bank marketing - Practise

Problem Statement

You work as a Business Analytics Consultant at the Bank of Corporate. The bank provides financial services/products such as savings accounts, current accounts, debit cards, etc. to its customers. In order to increase its overall revenue, the bank conducts various marketing campaigns for its financial products such as credit cards, term deposits, loans, etc. These campaigns are intended for the bank’s existing customers. However, the marketing campaigns need to be cost-efficient so that the bank not only increases their overall revenues but also the total profit.

In 2019, the bank conducted a telemarketing campaign for one of its financial products ‘Term Deposits’ to help foster long-term relationships with the existing customers. The dataset (provided below) contains the information about all the customers who were contacted during this year to open term deposit accounts.

What are term deposits?

Term deposits, also called fixed deposits, are the cash investments made for a specific time period ranging from 1 month to 5 years for predetermined fixed interest rates. The fixed interest rates offered for term deposits are higher than the regular interest rates for savings accounts. The customers receive the total amount (investment plus the interest) at the end of the maturity period. Also, the money can only be withdrawn at the end of the maturity period. Withdrawing money before that will result in an added penalty associated, and the customer will not receive any interest returns. This kind of investment deposits provides the required funds to the bank for lending money to the corporates or individuals at a higher interest rate than what is paid to the customer.

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