Federated Learning for Churn Prediction
Privacy-preserving machine learning system for customer churn prediction in telecommunications using horizontal and vertical federated learning.
Project Overview
Cognisoft Labs collaborated with a confidential Chinese telecom client to implement a federated learning system for predicting customer churn across distributed data silos.
The system integrated both horizontal and vertical federated learning techniques, enabling secure collaboration across different data sources without exposing sensitive information.
Modern encryption algorithms, including homomorphic encryption and secure multiparty computation (SMPC), were used to protect data during training and model updates.
The project ensured compliance with strict data privacy regulations and delivered highly accurate predictive models to support proactive customer retention strategies.
Technologies Used
- TensorFlow Federated
- PySyft
- PyTorch
- SMPC
- Homomorphic Encryption
- Python
- Docker
- PostgreSQL
Key Features
Horizontal & Vertical FL Models
Trained predictive models across different datasets with shared and non-shared features using both FL paradigms.
Encrypted Data Pipelines
Implemented homomorphic encryption and SMPC to ensure that sensitive telecom data remained confidential throughout training.
Churn Prediction Models
Built and validated ML models for predicting high-risk customers likely to churn, using behavioral and transactional data.
Cross-Entity Collaboration
Enabled secure model training across departments and companies without centralizing data.
Results
- Achieved 92% AUC for churn prediction with fully decentralized training
- Ensured compliance with strict Chinese data privacy and telecom regulations
- Reduced data exposure risk to virtually zero during ML model lifecycle
- Enabled multiple telecom vendors to collaborate securely
Client Testimonial
"The federated learning solution developed by Cognisoft Labs allowed us to collaborate securely without compromising data privacy. It’s a critical innovation for the future of telecom AI."
Confidential Client
Head of Data Security, Telecom Sector (China)
Other
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