ENHANCING BANKING SERVICES THROUGH DATA MINING: A CASE STUDY OF WUKRO CITY , TIGRAY REGION.

Banking services play a crucial role in supporting economic development and financial inclusion by providing essential products such as savings, loans, fund transfers, mobile banking, and customer support. However, in developing regions like Wukro City, Tigray, banks face persistent challenges in delivering efficient, reliable, and customer-oriented services. These challenges include long service times, limited personalization, weak customer relationship management, and gaps in decision-making processes. To address these issues, this study explores how data mining models can be applied to enhance banking services, thereby improving service quality, customer satisfaction, and operational efficiency. The research employed a mixed-methods approach, integrating both quantitative and qualitative techniques. Survey data were collected from banking customers and employees to identify service gaps and customer expectations. Quantitative data were analyzed using WEKA software to develop predictive. The qualitative data, gathered through interviews and focus group discussions, provided contextual insights into customer experiences and perceptions of banking services in Wukro City. The findings revealed that data mining models can significantly enhance banking services by enabling banks to segment customers effectively, predict loan repayment behaviors, identify cross-selling opportunities, and detect service inefficiencies. The study also highlighted that customer satisfaction is closely linked with digital service adoption, personalized banking products, and reduced waiting times. Furthermore, the results suggest that integrating data-driven decision-making into banking operations can strengthen competitiveness and trust in the local financial sector. This research contributes to the growing field of technology-driven financial services by demonstrating the applicability of data mining in a developing regional context. For Wukro City banks, the study provides a practical framework to adopt data mining techniques in order to deliver more customer-focused, efficient, and innovative services. Ultimately, the study concludes that leveraging data mining not only enhances banking performance but also supports broader financial inclusion and sustainable economic development in the Tigray region.