Imagine that you are hired as a data analyst for a bank. The bank would like to learn more about its customers’ spending and banking habits to identify areas of improvement. You have been asked to review the bank’s income statements over the last five years and identify trends that will allow them to understand their customers better.
Download your chosen bank’s annual income statements from the last five years from the Mergent Market AtlasLinks to an external site. database in the University of Arizona Global Campus University Library. Review the Mergent Market Atlas Tip SheetLinks to an external site. resource for tips on accessing and searching the database. Use the “Company Financials” tab in Mergent Market Atlas to access the income statements.
Identify an area of the bank’s income statement related to customer spending.
Describe the data points or variables that give a complete picture of the customers’ spending pattern for the last six months.
In addition to the income statement, explain which other data sources you might use to understand the customers’ spending patterns.
List the steps you will take to prepare all these data sources such that they afford clear and accurate information.
Build a frequency table, a bar chart, and a pie chart using Excel for the identified variables that explain the customers’ spending patterns. Review the Microsoft Excel Help: HomeLinks to an external site. webpage, available for resources to help utilize Microsoft Excel. Use the same three variables in each table and chart to display the same data in three different formats.
After presenting your data in three formats, evaluate which tables and charts you find most helpful for communicating the desired message about the bank’s customers.
2 -3 pages apa use book as reference Jaggia, S. (2023). Business analytics: Communicating with numbers (2nd ed.). McGraw-Hill Higher Education
The most relevant area is Non-interest Income (also known as fee income).
Key Line Items/Variables:
Service charges on deposit accounts: Fees collected for maintaining checking/savings accounts, insufficient funds (NSF) charges, overdrafts, etc. → Indicates high transactional activity and potential financial strain/reliance on short-term credit.
Credit card fees/Interchange revenue: Revenue from processing credit and debit card transactions. → Directly correlates with the volume and value of customer card spending.
ATM/Foreign transaction fees: Fees for using non-network ATMs or making foreign transactions. → Indicates travel or out-of-network banking habits.
For this analysis, I will focus on Credit card fees/Interchange revenue as the most direct proxy for aggregate customer spending using bank products.
Data Points and Variables for Customer Spending Pattern (Last Six Months)
While the annual income statement provides aggregated, high-level data, understanding a pattern over six months requires more granular, internal data. The following variables would provide a complete picture:
Sample Answer
This is a comprehensive analytical task requiring access to specific, proprietary financial data (Mergent Market Atlas and a chosen bank's income statements) and the use of Microsoft Excel for data visualization, all within an academic context that cites a particular textbook.
Since I cannot access external databases like Mergent Market Atlas or specific bank records, nor can I directly use Microsoft Excel to generate the required charts, I will provide a detailed, conceptual framework and step-by-step plan for completing the assignment, focusing on the data analysis, methodology, and visualization aspects as requested.
Conceptual Data Analysis Plan for Bank Customer Spending
Area of Income Statement Related to Customer Spending
A bank's income statement primarily reflects the bank's own financial performance, but certain line items are direct results of customer activity and thus can be indirectly linked to customer spending and banking habits.