Ranking Algorithm - Banking Use Case

Question

Hello all friends.

I currently work at the banking segment. Today, I'm trying to create an algorithm that points out a rank system of majorly 500 clients based of a few premises:

1. Financial Volume Transactioned (payments) through 5 years. The more cashflow it has, the better the rank.

2. Quantity of single payments through 5 years. The more payments the client does, the better the rank.

3. Total financial funds. Check whether the client is AAA or BBB for example. The more money the client stores with us, the better.

Which tool would you guys recommend? How can I create such a thing with Alteryx?

Thanks in advance!

IraWatt · Answer

@Joker_Hazard no definitely don't select the ID field as it doesn't make sense to say two clients are similar just because their ID's are close numerically. Just leave the box unticked in the configurations :

Joker_Hazard · Answer

Ira, thanks!!! Will take a look to create something alike.

One last question, should I use the customer ID as a variable as well?

There is Customer ID which is my key field and three predictor fiields. With that in mind, when using KNN the key field should be accounted and flaged on those tools as well?

Thanks

IraWatt · Answer

@Joker_Hazard Cool use case for KNN! I believe the rule of thumb is yes standardise the data Why should we Standardize Data in a KNN model? – Vipanchi (wordpress.com). The tool by default comes with an option to do this automatically:

Looks like there's a good Alteryx blog on the topic here: Tool Mastery | K-Centroids Diagnostics - Alteryx Community