Data mining strategies and methods to develop microfinance market – Use case currency exchange
- H. U. Khan, Z. Ullah and M. Mahmud (2009). WSEAS Transactions on Business and Economics, 147-156
- Abstract: The intrinsic characteristics of data mining are being inculcated in the market of microfinance. The use case that is brought under our consideration is of Currency Exchange. The idea was conceived and perceived by the current financial crises in the world market in the year 2008-09. The financial recession in world wide compelled individuals to think and start micro businesses rather than macro businesses. In our paper we conceived and designed some algorithms by using data mining techniques to have general micro currency exchange businesses for a developing country. Our algorithm processes two years historical data of currency rates and applies data mining strategies. The "Median Method" and "Rise & Fall Method" with probabilistic approach are being presented. It can be applied to N year's data with unless desired results are achieved. This is to give best choice to micro currency business men to take decision either to buy or to sell currency. Some previous currency rates (i.e. Ups & Down) are also recorded from a popular bank of Canada & currency open markets as a proof of concept using our algorithm. The statistical and graphical analysis are being made on the data. Our algorithm can be efficiently used by all those who wish to initialize a small business (Cottage Industries) with a profitable income with less investment. Our research will lead to a new dimension in the fields of Micro finance and Data mining.
- Theme: Finance
- Keywords: Currency exchange, Data mining strategies, Microfinance, Rise and falls method
- Reference type: Journal Article
- Geographic location: International