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This paper presents PDx, an adaptive, machine learning operations (MLOps) driven decision system for forecasting credit risk using probability of default (PD) modeling in digital lending. While conventional PD models prioritize predictive…

Inherent risk scoring is an important function in anti-money laundering, used for determining the riskiness of an individual during onboarding $\textit{before}$ fraudulent transactions occur. It is, however, often fraught with two…

Deploying machine learning in regulated financial environments -- credit risk, fraud detection, and anti-money laundering -- exposes critical vulnerabilities in algorithmic reproducibility. While early financial ML addressed statistical…

Creating impact in real-world settings requires artificial intelligence techniques to span the full pipeline from data, to predictive models, to decisions. These components are typically approached separately: a machine learning model is…

A biologically plausible method for training an Artificial Neural Network (ANN) involves treating each unit as a stochastic Reinforcement Learning (RL) agent, thereby considering the network as a team of agents. Consequently, all units can…

Machine learning algorithms are used to construct a mathematical model for a system based on training data. Such a model is capable of making highly accurate predictions without being explicitly programmed to do so. These techniques have a…

It is not, in general, possible to have access to all variables that determine the behavior of a system. Having identified a number of variables whose values can be accessed, there may still be hidden variables which influence the dynamics…

In this paper, we present a robust adaptive model predictive control (MPC) scheme for linear systems subject to parametric uncertainty and additive disturbances. The proposed approach provides a computationally efficient formulation with…

In the financial risk domain, particularly in credit default prediction and fraud detection, accurate identification of high-risk class instances is paramount, as their occurrence can have significant economic implications. Although machine…

Dropout Regularization, serving to reduce variance, is nearly ubiquitous in Deep Learning models. We explore the relationship between the dropout rate and model complexity by training 2,000 neural networks configured with random…

Credit is an essential component of financial wellbeing in America, and unequal access to it is a large factor in the economic disparities between demographic groups that exist today. Today, machine learning algorithms, sometimes trained on…

Machine learning classification tasks often benefit from predicting a set of possible labels with confidence scores to capture uncertainty. However, existing methods struggle with the high-dimensional nature of the data and the lack of…

Complementary-label learning is a weakly supervised learning problem in which each training example is associated with one or multiple complementary labels indicating the classes to which it does not belong. Existing consistent approaches…

Credit risk modelling is an integral part of the global financial system. While there has been great attention paid to neural network models for credit default prediction, such models often lack the required interpretation mechanisms and…

We study the robustness of conformal prediction, a powerful tool for uncertainty quantification, to label noise. Our analysis tackles both regression and classification problems, characterizing when and how it is possible to construct…

Monotonicity is a key qualitative prediction of a wide array of economic models derived via robust comparative statics. It is therefore important to design effective and practical econometric methods for testing this prediction in empirical…

This study conducts a benchmarking study, comparing 23 different statistical and machine learning methods in a credit scoring application. In order to do so, the models' performance is evaluated over four different data sets in combination…

The existence of adversarial data examples has drawn significant attention in the deep-learning community; such data are seemingly minimally perturbed relative to the original data, but lead to very different outputs from a deep-learning…

The cost of error in many high-stakes settings is asymmetric: misdiagnosing pneumonia when absent is an inconvenience, but failing to detect it when present can be life-threatening. Because of this, artificial intelligence (AI) models used…

Due to the outstanding capability of capturing underlying data distributions, deep learning techniques have been recently utilized for a series of traditional database problems. In this paper, we investigate the possibilities of utilizing…