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Profitability and money propagation in communities of bank clients: A visual analytics approach

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  • Berggrun, Luis
  • Salamanca, Juan
  • Díaz, Javier
  • Ospina, Juan David

Abstract

We analyze financial transactions of corporate bank clients not only at the level of particular customers, but also at the level of communities of customers and a system as a whole. We first build a structure of communities using the Louvain method, which in turn allows us to estimate the profitability of each community. Then, we visualize the community structure and transaction propagation in a custom-made visual analytic platform. The detection and visualization of communities proved to be extremely valuable in the study of money propagation because it revealed a critical structure and the behavior of the clients.

Suggested Citation

  • Berggrun, Luis & Salamanca, Juan & Díaz, Javier & Ospina, Juan David, 2020. "Profitability and money propagation in communities of bank clients: A visual analytics approach," Finance Research Letters, Elsevier, vol. 37(C).
    • Handle: RePEc:eee:finlet:v:37:y:2020:i:c:s1544612319308293
    DOI: 10.1016/j.frl.2019.101387
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    References listed on IDEAS

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    1. Freixas, Xavier & Parigi, Bruno M & Rochet, Jean-Charles, 2000. "Systemic Risk, Interbank Relations, and Liquidity Provision by the Central Bank," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 32(3), pages 611-638, August.
    2. Kleinow, Jacob & Moreira, Fernando & Strobl, Sascha & Vähämaa, Sami, 2017. "Measuring systemic risk: A comparison of alternative market-based approaches," Finance Research Letters, Elsevier, vol. 21(C), pages 40-46.
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    Cited by:

    1. Abedin, Mohammad Zoynul & Hajek, Petr & Sharif, Taimur & Satu, Md. Shahriare & Khan, Md. Imran, 2023. "Modelling bank customer behaviour using feature engineering and classification techniques," Research in International Business and Finance, Elsevier, vol. 65(C).

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