Find the best algorithm to analyze and predict the demand for cash withdrawals
It is quite obvious that daily cash withdrawal amounts are time series. Therefore, in this typical cash demand forecast models we will present time series and regression machine learning models to troubleshoot the above use case. We will work on the demand for a single ATM (a group of ATMs can also be worked that is treated as a single ATM) to develop a model for the given data set. We have to remember that, cash withdrawals from an ATM are not only time dependent. There could be seasonality, e.g.
- people will have a tendency to withdraw money on Friday for the weekend or
- end of the month when people get their salaries or
- between 7–10th day of each month some people get their pension. Therefore, developing cash demand forecasting model for ATM network is a challenging task. Also, the chronological cash demand for every ATM fluctuates with time and often superimposed with non-stationary behaviour of users.