Related papers: Dynamic Ensemble Learning for Credit Scoring: A Co…

Class-imbalance refers to classification problems in which many more instances are available for certain classes than for others. Such imbalanced datasets require special attention because traditional classifiers generally favor the…

Dynamic classifier selection systems aim to select a group of classifiers that is most adequate for a specific query pattern. This is done by defining a region around the query pattern and analyzing the competence of the classifiers in this…

The need for controlling and effectively managing credit risk has led financial institutions to excel in improving techniques designed for this purpose, resulting in the development of various quantitative models by financial institutions…

A discriminative ensemble tracker employs multiple classifiers, each of which casts a vote on all of the obtained samples. The votes are then aggregated in an attempt to localize the target object. Such method relies on collective…

Ensemble learning is characterized by flexibility, high precision, and refined structure. As a critical component within computational finance, option pricing with machine learning requires both high predictive accuracy and reduced…

In this work we build a stack of machine learning models aimed at composing a state-of-the-art credit rating and default prediction system, obtaining excellent out-of-sample performances. Our approach is an excursion through the most recent…

Combining multiple machine learning models into an ensemble is known to provide superior performance levels compared to the individual components forming the ensemble. This is because models can complement each other in taking better…

Banks are important for the development of economies in any financial ecosystem through consumer and business loans. Lending, however, presents risks; thus, banks have to determine the applicant's financial position to reduce the…

The digitalization of credit scoring has become essential for financial institutions and commercial banks, especially in the era of digital transformation. Machine learning techniques are commonly used to evaluate customers'…

Deep ensembles perform better than a single network thanks to the diversity among their members. Recent approaches regularize predictions to increase diversity; however, they also drastically decrease individual members' performances. In…

Ensemble learning serves as a straightforward way to improve the performance of almost any machine learning algorithm. Existing deep ensemble methods usually naively train many different models and then aggregate their predictions. This is…

Scoring models support decision-making in financial institutions. Their estimation and evaluation are based on the data of previously accepted applicants with known repayment behavior. This creates sampling bias: the available labeled data…

In this paper, we propose a novel dynamic ensemble selection framework using meta-learning. The framework is divided into three steps. In the first step, the pool of classifiers is generated from the training data. The second phase is…

Recommending appropriate algorithms to a classification problem is one of the most challenging issues in the field of data mining. The existing algorithm recommendation models are generally constructed on only one kind of meta-features by…

We develop a model to predict consumer default based on deep learning. We show that the model consistently outperforms standard credit scoring models, even though it uses the same data. Our model is interpretable and is able to provide a…

Active learning aims to reduce annotation cost by predicting which samples are useful for a human teacher to label. However it has become clear there is no best active learning algorithm. Inspired by various philosophies about what…

This paper proposes a two-stage scoring approach to help lenders decide their fund allocations in the peer-to-peer (P2P) lending market. The existing scoring approaches focus on only either probability of default (PD) prediction, known as…

The existence of asymmetric information has always been a major concern for financial institutions. Financial intermediaries such as commercial banks need to study the quality of potential borrowers in order to make their decision on…

Model selection is a strategy aimed at creating accurate and robust models. A key challenge in designing these algorithms is identifying the optimal model for classifying any particular input sample. This paper addresses this challenge and…

Since the 1990s, there have been significant advances in the technology space and the e-Commerce area, leading to an exponential increase in demand for cashless payment solutions. This has led to increased demand for credit cards, bringing…