Role of Data Mining in Managerial Decisions
Keywords:
Data Mining, Financial Markets, Financial Institutions, Risk Management, Portfolio Management, Technology, Decision MakingAbstract
In the age of technology, huge electronic data repositories are being maintained by business houses and financial institutions. Information for longer periods is being kept in these data repositories. The huge size of these data sources make it possible for financial analysts to come up with interesting information that helps in the decision making for future operations. In this paper an attempt has been made to analyse the role of data mining and its contribution to solving business problems in banking and finance by finding patterns, causalities, and correlations in business information and market prices that are not immediately apparent to managers because of the global market competition and market volatility. In this paper, the researcher has tried to highlight the application of data mining that has definitely positive impact on risk management, portfolio management, trading, customer profiling and customer care, where data mining techniques can be used in banks and other financial institutions to enhance performance through efficient decision-making.
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