2025/01/28 by Halil Ibrahim Ergul, Ergul, Halil Ibrahim, Selim Balcısoy +3
Business, Management and Accounting · Computer Science · #Artificial Intelligence (cs.AI) #Customer churn and segmentation #Data Mining Algorithms and Applications #Data Stream Mining Techniques #FOS: Computer and information sciences #Information Retrieval (cs.IR)
paper · pdf · doi:10.48550/arxiv.2502.15724
openalex publication_date 2025/01/28 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
In this study, the performance of various predictive models, including probabilistic baseline, CNN, LSTM, and finetuned LLMs, in forecasting merchant categories from financial transaction data have been evaluated. Utilizing datasets from Bank A for training and Bank B for testing, the superior predictive capabilities of the fine-tuned Mistral Instruct model, which was trained using customer data converted into natural language format have been demonstrated. The methodology of this study involves instruction fine-tuning Mistral via LoRA (LowRank Adaptation of Large Language Models) to adapt its vast pre-trained knowledge to the specific domain of financial transactions. The Mistral model significantly outperforms traditional sequential models, achieving higher F1 scores in the three key merchant categories of bank transaction data (grocery, clothing, and gas stations) that is crucial for targeted marketing campaigns. This performance is attributed to the model's enhanced semantic understanding and adaptability which enables it to better manage minority classes and predict transaction categories with greater accuracy. These findings highlight the potential of LLMs in predicting human behavior.