How to Improve Customer Retention in FinTech

A system for improving customer retention in fintech can be built using a two-step machine learning approach. First, a pre-churn model is trained on user profile and transactional data to identify customers with a high probability of churning. While an experiment showed that targeting this segment with an offer improved retention, it was too costly as it included users who would have stayed anyway. To solve this, an uplift model is introduced to identify which specific users within the at-risk segment are most likely to be positively influenced by the retention offer, thereby optimizing the intervention and reducing costs.