Abstract: A system for facilitating prediction of a loan recovery decision pertaining to a customer of a financial institution is provided. The system comprises one or more databases comprising customer interaction data, customer profile data, and economic data. The system further comprises a Behavioral History Sequence (BHS) module configured to generate behavioral history sequence data associated with the customer. The BHS module generates the BHS data by sanitizing the customer interaction data and classifying the sanitized customer interaction data into predefined categories. The system further comprises a prediction module that is configured to predict payment behavior of the customer based on the BHS data, the customer profile data, and the economic data. The prediction module is further configured to predict the loan recovery decision pertaining to the customer, wherein the predicted loan recovery decision is based on the predicted payment behavior of the customer.