PRE – SUBMISSION REPORT OF PROJECT

INT404: AI PROJECT

TOPIC: AI in finance(Personalized Banking)

MEMBERS:

NAME REGN NO. ROLL NO. SIGNATURE

SAGNIK PANDA 12100867 RK21PDA05

ADITYA KUMAR 12100964 RK21PDB53

KOKKULA MOKSHAGNA 12100437 RK21PDA29

UNDER THE GUIDANCE OF OUR TEACHER

“JASPREET KAUR”

SUBMITTED TO: -

“SCHOOL OF COMPUTER SCIENCE AND ENGENEERING”

PHAGWARA, PUNJAB
MARCH 27,2023

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 INTRODUCTION

Artificial Intelligence (AI) has revolutionized the way we do things in the financial industry, and
personalized banking is one of the most significant ways. Personalized banking refers to a
situation where a bank tailors its services to suit the unique needs of each customer.

AI algorithms have the ability to analyze vast amounts of data and extract insights that can help
banks offer personalized services to their customers. By analyzing customer data such as
spending patterns, income, and financial goals, banks can provide tailored financial advice,
customized products and services, and investment recommendations.

AI-powered chatbots are also becoming increasingly popular in personalized banking. Chatbots
are computer programs that simulate conversation with human users. They can answer customer
inquiries, provide account balances, and even offer investment advice.

AI in finance is also helping banks detect fraudulent transactions, making financial transactions
more secure. AI algorithms can learn from patterns in transaction data and identify suspicious
transactions in real-time, allowing banks to prevent fraud before it happens.

In conclusion, AI is transforming the financial industry, and personalized banking is just one
example of its impact. With AI-powered technologies, banks can offer customized services to
customers, make transactions more secure, and even prevent fraud. As AI continues to evolve, we
can expect to see even more advancements in personalized banking and finance.

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 APPLICATIONS OF AI IN BANKING SYSTEM & FINANCE:

Personalized banking is an emerging trend in the finance industry, aimed at tailoring financial
products and services to meet the individual needs of each customer. AI has played a crucial role
in enabling personalized banking, allowing financial institutions to leverage data to provide more
personalized products and services to their customers. Here are some of the applications of AI in
personalized banking:

Credit scoring and risk assessment: AI algorithms can be used to assess a customer's
creditworthiness and risk profile by analyzing their credit history, income, and spending habits.
This can help financial institutions make better lending decisions and offer more personalized
loan terms to customers.

Financial planning and investment advice: AI can analyze a customer's financial data,
including income, expenses, and investment portfolio, to provide personalized investment advice
and financial planning services. This can help customers make more informed investment
decisions and achieve their financial goals.

Fraud detection and prevention: AI algorithms can be used to detect and prevent fraudulent
activities in real-time by analyzing transaction data and identifying suspicious behavior patterns.
This can help financial institutions reduce fraud losses and improve the security of their
customers' financial information.

Customer service and chatbots: AI-powered chatbots can provide personalized customer service
by answering customer queries, providing product recommendations, and offering financial
advice. This can improve customer satisfaction and reduce the workload of customer service
representatives.

Personalized marketing and product recommendations: AI algorithms can analyze customer

data to provide personalized marketing messages and product recommendations. This can help
financial institutions promote relevant products and services to customers and increase their sales
and revenue.

Overall, AI has the potential to transform the finance industry by enabling personalized banking
and providing customers with more tailored products and services.

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 ABOUT THIS PROJECT

This section gives a scope description and overview of everything included in this Project
Report. Also, the purpose for this document is described and system overview along with
goal and vision are listed.

1.1. Purpose

The purpose of this project is to implement an AI-powered personalized banking system that
leverages data analytics and machine learning techniques to provide personalized financial
services to customers. The project aims to improve customer experience and satisfaction by
tailoring financial products and services to meet the individual needs of each customer.
Additionally, the project aims to increase the efficiency and effectiveness of financial institutions
by automating various processes and reducing the workload of employees.

1.2. System Overview

The AI-powered personalized banking system is a comprehensive platform that uses machine
learning and data analytics to provide personalized financial services to customers. The system
comprises several modules, including data collection, data analytics, credit scoring and risk
assessment, financial planning and investment advice, fraud detection and prevention, customer
service and chatbots, personalized marketing and product recommendations, and system
administration and integration. The system aims to improve customer experience, increase
efficiency and effectiveness, and provide financial institutions with a competitive edge.

1.3. Problem Statement

The traditional banking system fails to provide personalized financial services that meet the
individual needs of each customer. There is a need for an AI-powered personalized banking
system that uses data analytics and machine learning to offer tailored financial products and
services to customers.

1.4. Goal & Vision

The goal of this project is to implement an AI-powered personalized banking system that
improves customer experience, increases efficiency and effectiveness, and provides financial
institutions with a competitive edge. The vision is to revolutionize the finance industry by
offering tailored financial products and services that meet the individual needs of each customer.

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Tools used:
1. Python :

Python is a general purpose programming language. Hence, you can use the
programming language for developing both desktop and web applications. Also, you can
use Python for developing complex scientific and numeric applications. Python is
designed with features to facilitate data analysis and visualization

2. Modules & Packages:

import pandas as pd
import numpy as np
import seaborn as sns
import matplotlib.pyplot as plt
from sklearn.model_selection import train_test_split
from sklearn.preprocessing import StandardScaler
from sklearn.linear_model import LogisticRegression
from sklearn.metrics import classification_report, confusion_matrix

3.EXCEL

Excel is used to keep track of data. We use excel to make data plot using graphical features
in it.

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 TASK OF EACH MEMBER:

TEAM MEMBER 1: SAGNIK PANDA

• Make pre-submission report

• Assigned to complete Module 1&2

• Gathering data and analyzing

• Plotting the data using python

TEAM MEMBER 2: ADITYA KUMAR

• Assigned to complete Module 3&4

• Making presentation report of the project

• Coding modules using python

• Excel

TEAM MEMBER 3:

• Assigned to complete Module 5&6

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 MODULES AND THEIR DESCRIPTION:

1.Data Collection and Pre-processing Module:

This module will be responsible for collecting data from various sources such as transaction data,
customer demographics, and external data sources. This module will also be responsible for pre-
processing the data by cleaning, filtering, and transforming the data to make it suitable for further
analysis.

2.Data Analytics Module:

This module will apply various data analytics techniques such as machine learning, natural
language processing, and predictive analytics to analyze the pre-processed data. The data
analytics module will be responsible for extracting patterns, trends, and insights from the data to
improve customer experience and provide personalized financial services.

3.Credit Scoring and Risk Assessment Module:

This module will use machine learning algorithms to analyze a customer's creditworthiness and
risk profile by analyzing their credit history, income, and spending habits.

4.Financial Planning and Investment Advice Module:

This module will use predictive analytics and machine learning algorithms to provide
personalized investment advice and financial planning services to customers.

5.Fraud Detection and Prevention Module:

This module will use machine learning algorithms to detect and prevent fraudulent activities by
analyzing transaction data and identifying suspicious behavior patterns.

6.Customer Service and Chatbot Module:

This module will use natural language processing techniques to provide personalized customer
service by answering customer queries, providing product recommendations, and offering
financial advice.

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 GANTT CHART IN GRAPH FORM

Week 1 Requirement Analysis

Week 2 Design

Week 3 Coding

Week 4 Testing

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