Predictive Analytics and Recommendation Systems in Banking

The banking industry has undergone a paradigm shift with the rise of artificial intelligence (AI) predictive analytics and recommendation systems. Artificial intelligence, machine learning, and natural language processing are revolutionizing financial services — they allow for real-time fraud detection, tailored financial product recommendations, and consumer segmentation. Banking Sector: The Impact of Machine Learning Algorithms on Customer Engagement, Risk Management and Decision Making. The study aligns with a hybrid recommendation model and a supervised fraud detection system to optimize banking operations. Customer segmentation using clustering-based methods increases personalization, and predictive analytics have shown improved fraud detection accuracy at 92% using random forest classifiers. These developments enhance customer experience, mitigate financial risks, and increase profitability.