1. Towards data and analytics driven B2B-banking for green finance: A cross-selling use case study.
- Author
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Chang, Victor, Hahm, Nattareya, Xu, Qianwen Ariel, Vijayakumar, P., and Liu, Ling
- Subjects
DATA analytics ,BUSINESS-to-business electronic markets ,BANKING industry ,CLEAN energy ,ECONOMIC development - Abstract
This paper examines the role of technological innovation in banking and its potential effects on economic cycles. Specifically, it utilizes a case study of a German bank (Bank A) in the business-to-business (B2B) banking, including green finance, to demonstrate how leveraging advancements in data analytics and machine learning can enhance efficiency, risk management, and profitability. However, scaling these innovations poses risks if not managed carefully. The paper concludes with policy recommendations for utilizing technology responsibly while promoting sustainable economic growth. The methodology involves collecting and analyzing the bank's CRM and transactional data. Machine learning algorithms including neural networks, random forests, and support vector machines are applied to predict cross-selling opportunities. The models are evaluated. Key findings show that business area, transaction volumes, and product diversity are significant factors influencing cross-selling success. Random forest was confirmed the most effective algorithm, achieving 96.6 % accuracy. The data quality assessment revealed strengths in accuracy, completeness, and consistency. Areas needing improvement included enhancing interpretability and understanding of business terminologies. This research contributes to updated literature on data analytics adoption in B2B banking for green finance. It provides a practical framework to assess readiness and demonstrates the feasibility of predictive analytics. For practitioners, it delivers actionable insights into optimizing cross-selling and provides a prototype for leveraging data analytics in B2B banking. Limitations of the study and areas for further research are discussed. • We leverage German B2B bank case study using data analytics and ML for green finance cross-selling optimization. • Random forest, neural networks outperform other models in predicting customer purchase propensities from CRM data. • Product diversity, transaction history, business areas emerge as key drivers of green finance cross-selling success. • Continuous monitoring of granular bank data offers real-time signals on innovation diffusion and economic cycles. • We recommend policy actions balancing tech innovation with privacy, stability, and equitable access in green finance. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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