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Loan default prediction is one of the most important and critical problems faced by banks and other financial institutions as it has a huge effect on profit. Although many traditional methods exist for mining information about a loan…

Statistical Finance · Quantitative Finance 2020-02-07 Rising Odegua

Online leading has disrupted the traditional consumer banking sector with more effective loan processing. Risk prediction and monitoring is critical for the success of the business model. Traditional credit score models fall short in…

Risk Management · Quantitative Finance 2017-07-18 Xiaojiao Yu

The use of credit cards has recently increased, creating an essential need for credit card assessment methods to minimize potential risks. This study investigates the utilization of machine learning (ML) models for credit card default…

Machine Learning · Computer Science 2023-10-17 Anas Arram , Masri Ayob , Musatafa Abbas Abbood Albadr , Alaa Sulaiman , Dheeb Albashish

Credit card fraud detection remains a critical challenge in financial security, with machine learning models like XGBoost(eXtreme gradient boosting) emerging as powerful tools for identifying fraudulent transactions. However, the inherent…

Machine Learning · Computer Science 2024-12-11 Siyaxolisa Kabane

Predicting the probability of default (PD) of prospective loans is a critical objective for financial institutions. In recent years, machine learning (ML) algorithms have achieved remarkable success across a wide variety of prediction…

Risk Management · Quantitative Finance 2025-06-25 Adrian Iulian Cristescu , Matteo Giordano

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…

Statistical Finance · Quantitative Finance 2017-07-05 Jinglun Yao , Maxime Levy-Chapira , Mamikon Margaryan

One of the important factors of profitability is the volume of transactions. An accurate prediction of the future transaction volume becomes a pivotal factor in shaping corporate operations and decision-making processes. E-commerce has…

Machine Learning · Computer Science 2024-11-04 Meng Wang , Yuchen Liu , Gangmin Li , Terry R. Payne , Yong Yue , Ka Lok Man

Credit risk assessment is a crucial aspect of financial decision-making, enabling institutions to predict the likelihood of default and make informed lending decisions. Two prominent methodologies in credit risk modeling are logistic…

Applications · Statistics 2026-04-30 Cheng Lee , Hsi Lee

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…

Risk Management · Quantitative Finance 2021-10-06 K. S. Naik

Logistic Regression and Support Vector Machine algorithms, together with Linear and Non-Linear Deep Neural Networks, are applied to lending data in order to replicate lender acceptance of loans and predict the likelihood of default of…

Risk Management · Quantitative Finance 2019-07-04 Jeremy D. Turiel , Tomaso Aste

This paper evaluates XGboost's performance given different dataset sizes and class distributions, from perfectly balanced to highly imbalanced. XGBoost has been selected for evaluation, as it stands out in several benchmarks due to its…

Machine Learning · Computer Science 2023-03-28 Gissel Velarde , Anindya Sudhir , Sanjay Deshmane , Anuj Deshmunkh , Khushboo Sharma , Vaibhav Joshi

The forecasting of the credit default risk has been an important research field for several decades. Traditionally, logistic regression has been widely recognized as a solution due to its accuracy and interpretability. As a recent trend,…

Computational Finance · Quantitative Finance 2022-09-22 Dangxing Chen , Weicheng Ye , Jiahui Ye

The credit scoring risk management is a fast growing field due to consumer's credit requests. Credit requests, of new and existing customers, are often evaluated by classical discrimination rules based on customers information. However,…

Machine Learning · Computer Science 2012-12-27 Farid Beninel , Waad Bouaguel , Ghazi Belmufti

In the realm of consumer lending, accurate credit default prediction stands as a critical element in risk mitigation and lending decision optimization. Extensive research has sought continuous improvement in existing models to enhance…

Computational Engineering, Finance, and Science · Computer Science 2024-02-29 Mengran Zhu , Ye Zhang , Yulu Gong , Kaijuan Xing , Xu Yan , Jintong Song

In the highly competitive environment of the banking industry, it is essential to precisely forecast the behavior of customers in order to maximize the effectiveness of marketing initiatives and improve financial consequences. The purpose…

Machine Learning · Computer Science 2024-10-30 Muhammad Farhan Tanvir , Md Maruf Hossain , Md Asifuzzaman Jishan

Techniques for making future predictions based upon the present and past data, has always been an area with direct application to various real life problems. We are discussing a similar problem in this paper. The problem statement is…

Machine Learning · Computer Science 2020-08-19 Devendra Swami , Alay Dilipbhai Shah , Subhrajeet K B Ray

Predicting potential credit default accounts in advance is challenging. Traditional statistical techniques typically cannot handle large amounts of data and the dynamic nature of fraud and humans. To tackle this problem, recent research has…

Machine Learning · Computer Science 2018-07-04 Sheikh Rabiul Islam , William Eberle , Sheikh Khaled Ghafoor

Accurate prediction of crop yield before harvest is of great importance for crop logistics, market planning, and food distribution around the world. Yield prediction requires monitoring of phenological and climatic characteristics over…

Machine Learning · Computer Science 2023-02-08 Florian Huber , Artem Yushchenko , Benedikt Stratmann , Volker Steinhage

In this work, we study the use of logistic regression in manufacturing failures detection. As a data set for the analysis, we used the data from Kaggle competition Bosch Production Line Performance. We considered the use of machine…

Machine Learning · Computer Science 2016-12-31 B. Pavlyshenko

Highly regulated domains such as finance have long favoured the use of machine learning algorithms that are scalable, transparent, robust and yield better performance. One of the most prominent examples of such an algorithm is XGBoost.…

Artificial Intelligence · Computer Science 2020-10-08 Srinivasan Ravichandran , Drona Khurana , Bharath Venkatesh , Narayanan Unny Edakunni
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