Factor Analysis attempts to identify underlying variables (factors) that explain the pattern of correlations within a set of observed variables. Factor analysis is often used in data reduction. It can also be used to group variables (e.g. Bank Transaction Preferences) into discernable patterns.In this research paper two Factor Analyses were performed. The first on Question XX to attempt to group preferable methods of bank transactions together. The second factor analysis was performed on Question of financial reasons into XX, which groups the important clusters that the bank may want to use to identify customer needs and create new services to address them.The output is sorted in descending order of factor loading. Variables are reported with the loading of its factor rounded to two decimal places. All loadings below 0 .4 are omitted.
Banking Transaction Preferences Group into Three Distinct Methodologies:
Customer’s Primary Banking Concerns Can Be Broken Down into Five Main Categories:
Refer Table below.
Refer Table below.
Hence to sum it up Customer Preference for Banking Transactions Can Be Broken Down Into Three Methodologies; Computer/Phone, Remote, and Face-to-Face. This is useful information for the bank because they may now be able to group customers according to their preferred transaction method and offer services accordingly.Customer’s Primary Banking Concerns Can Be Broken Down into Five Main Categories. Again, Some Banks have an opportunity to understand that various banks can be grouped together. For example, if a customer indicates that he is using the bank to that he may be interested in paying off his mortgage more quickly. This is known because these reasons fall in the same factor and have a high correlation. Customers can also be clustered in this manner.
Submitted by;
Dibyangana Saha
Roll - 12132
Finance Batch
SIBM Bangalore
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