The IT revolution is one of the biggest achievements of mankind. The use of information technology is very much prominent in all organizations irrespective of their size. Banking sector is one of those sectors which has incorporated the use of IT in all kinds of operations being done by them. The size of data bases in banks is increasing at such an alarming rate that banks are not able to manage the data bases and hence are unable to use the data for proper decision making. Some of the leading banks around the globe have started using the latest techniques of data mining for customer segmentation, while some banks are still at the planning stage for the implementation of the same. The primary objective of this paper is to investigate the problems faced by the banks while handling the data and to check whether the banks which are using data mining technology are better in this regard as compared to the banks which are not using data mining techniques.

Data Mining, Decision Making, Fraud Detection, Customer Relationship Management

[1]. Danziger, J. N., & Andersen, K. V. (2002). �The Impacts of Information Technology on Public Administration: An Analysis of Empirical Research From The �Golden Age� of Transformation�. International Journal of Public Administration, 25(5), 591-627.
[2]. Engler, H., & Essinger, J. (2000). The future of banking. UK: Reuters, Pearson Education.
[3]. H. R. Nemati and C. D. Barko(2003)�Key Factors for Achieving Organizational Data Mining Success�. Industrial Management and Data Systems, vol. 103, no. 4, pp. 282�292.
[4]. Hedelin, L., & Allwood, C. M. (2002). �IT and strategic decision making�. Industrial Management + Data Systems, 102(3/4), 125.
[5]. A. Vasudevan(1999) Report of the committee on technology up-gradation in banking sector� Reserve Bank of India, May 1999, chapter 6.
[6]. Mudit Saxena(2000), Vice-President (Retail Marketing), HDFC Bank, Press Statement, Indian Express Newspaper on 9th Nov, 2000.
[7]. Foster, D. P. and Stine, R. A(2004) �Variable Selection in Data Mining: Building a Predictive Model for Bankruptcy�. Journal of the American Statistical Association, Alexandria,Vol. 99, pp. 303-313.
[8]. Rajanish Dass (2006), Data Mining In Banking And Finance: A Note For Bankers- Technical note, Note No.: CISG88., April 2006
[9]. M. Purna Chandar, Arijit Laha and P. Radha Krishna
[10]. Modeling Churn behavior of bank Customers using Predictive Data Mining Techniques", National Conference on Soft Computing Techniques for Engineering Applications, (SCT−2006), Published by Institute for Development & Research in Banking Technology [IDRBT]
[11]. Chowdari Prasad(2007), Commercial Banking to Convenience Banking. Faculty Coloumn, IndianMBA.com.
[12]. Madan Lal Bhasin (2006), "Data Mining: A Competitive Tool in the Banking and Retail Industries�, The Chartered Accountant October, 2006.