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In this study, the performance of various predictive models, including probabilistic baseline, CNN, LSTM, and finetuned LLMs, in forecasting merchant categories from financial transaction data have been evaluated. Utilizing datasets from Bank A for training and Bank B for testing, the superior predictive capabilities of the fine-tuned Mistral Instruct model, which was trained using customer data converted into natural language format have been demonstrated. The methodology of this study involves instruction fine-tuning Mistral via LoRA (LowRank Adaptation of Large Language Models) to adapt its vast pre-trained knowledge to the specific domain of financial transactions. The Mistral model significantly outperforms traditional sequential models, achieving higher F1 scores in the three key merchant categories of bank transaction data (grocery, clothing, and gas stations) that is crucial for targeted marketing campaigns. This performance is attributed to the model's enhanced semantic understanding and adaptability which enables it to better manage minority classes and predict transaction categories with greater accuracy. These findings highlight the potential of LLMs in predicting human behavior.

What predicts a neighborhood's resilience and adaptability to essential public health policies and shelter-in-place regulations that prevent the harmful spread of COVID-19? To answer this question, in this paper we present a novel application of human mobility patterns and human behavior in a network setting. We analyze mobility data in New York City over two years, from January 2019 to December 2020, and create weekly mobility networks between Census Block Groups by aggregating Point of Interest level visit patterns. Our results suggest that both the socioeconomic and geographic attributes of neighborhoods significantly predict neighborhood adaptability to the shelter-in-place policies active at that time. That is, our findings and simulation results reveal that in addition to factors such as race, education, and income, geographical attributes such as access to amenities in a neighborhood that satisfy community needs were equally important factors for predicting neighborhood adaptability and the spread of COVID-19. The results of our study provide insights that can enhance urban planning strategies that contribute to pandemic alleviation efforts, which in turn may help urban areas become more resilient to exogenous shocks such as the COVID-19 pandemic.