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Artificial Intelligence (AI) models have reached a very significant level of accuracy. While their superior performance offers considerable benefits, their inherent complexity often decreases human trust, which slows their application in…

Machine Learning · Computer Science 2025-04-25 Pierre-Daniel Arsenault , Shengrui Wang , Jean-Marc Patenande

The applications of Artificial Intelligence (AI) methods especially machine learning techniques have increased in recent years. Classification algorithms have been successfully applied to different problems such as requirement…

Software Engineering · Computer Science 2023-02-13 Behnaz Jamasb , Reza Akbari , Seyed Raouf Khayami

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

Wildfires present intricate challenges for prediction, necessitating the use of sophisticated machine learning techniques for effective modeling\cite{jain2020review}. In our research, we conducted a thorough assessment of various machine…

Machine Learning · Computer Science 2024-04-03 Di Fan , Ayan Biswas , James Paul Ahrens

Significant digitalization of financial services in a short period of time has led to an urgent demand to have autonomous, transparent and real-time credit risk decision making systems. The traditional machine learning models are effective…

Artificial Intelligence · Computer Science 2026-01-06 Chandra Sekhar Kubam

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…

Statistical Finance · Quantitative Finance 2020-08-05 A. R. Provenzano , D. Trifirò , A. Datteo , L. Giada , N. Jean , A. Riciputi , G. Le Pera , M. Spadaccino , L. Massaron , C. Nordio

A major requirement for credit scoring models is to provide a maximally accurate risk prediction. Additionally, regulators demand these models to be transparent and auditable. Thus, in credit scoring, very simple predictive models such as…

Machine Learning · Statistics 2020-09-30 Michael Bücker , Gero Szepannek , Alicja Gosiewska , Przemyslaw Biecek

Big Data has become central to modern applications in finance, insurance, and cybersecurity, enabling machine learning systems to perform large-scale risk assessments and fraud detection. However, the increasing dependence on automated…

Machine Learning · Computer Science 2025-12-19 Ayush Jain , Rahul Kulkarni , Siyi Lin

Artificial intelligence models encounter significant challenges due to their black-box nature, particularly in safety-critical domains such as healthcare, finance, and autonomous vehicles. Explainable Artificial Intelligence (XAI) addresses…

Artificial Intelligence · Computer Science 2025-03-14 Melkamu Mersha , Khang Lam , Joseph Wood , Ali AlShami , Jugal Kalita

Not only automation of manufacturing processes but also automation of automation procedures itself become increasingly relevant to automation research. In this context, automated capability assessment, mainly leveraged by deep learning…

Artificial Intelligence · Computer Science 2022-01-31 Raoul Schönhof , Artem Werner , Jannes Elstner , Boldizsar Zopcsak , Ramez Awad , Marco Huber

eXplainable Artificial Intelligence (XAI) aims at providing understandable explanations of black box models. In this paper, we evaluate current XAI methods by scoring them based on ground truth simulations and sensitivity analysis. To this…

The black-box nature of artificial intelligence (AI) models has been the source of many concerns in their use for critical applications. Explainable Artificial Intelligence (XAI) is a rapidly growing research field that aims to create…

Cryptography and Security · Computer Science 2023-06-13 Gaith Rjoub , Jamal Bentahar , Omar Abdel Wahab , Rabeb Mizouni , Alyssa Song , Robin Cohen , Hadi Otrok , Azzam Mourad

The rapid development of artificial intelligence methods contributes to their wide applications for forecasting various financial risks in recent years. This study introduces a novel explainable case-based reasoning (CBR) approach without a…

Computational Finance · Quantitative Finance 2021-07-20 Wei Li , Florentina Paraschiv , Georgios Sermpinis

Personalized services bridge the gap between a financial institution and its customers and are built on trust. The more we trust the product, the keener we are to disclose our personal information in order to receive a highly personalized…

Computational Engineering, Finance, and Science · Computer Science 2024-01-30 Vijaya Kanaparthi

The critical need for transparent and trustworthy machine learning in cybersecurity operations drives the development of this integrated Explainable AI (XAI) framework. Our methodology addresses three fundamental challenges in deploying AI…

Cryptography and Security · Computer Science 2026-02-24 Norrakith Srisumrith , Sunantha Sodsee

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

Artificial Intelligence (AI) has continued to achieve tremendous success in recent times. However, the decision logic of these frameworks is often not transparent, making it difficult for stakeholders to understand, interpret or explain…

Machine Learning · Computer Science 2025-01-20 Fuseini Mumuni , Alhassan Mumuni

The unprecedented performance of machine learning models in recent years, particularly Deep Learning and transformer models, has resulted in their application in various domains such as finance, healthcare, and education. However, the…

Human-Computer Interaction · Computer Science 2023-12-20 Milad Rogha

Practitioners and researchers trying to strike a balance between accuracy and transparency center Explainable Artificial Intelligence (XAI) at the junction of finance. This paper offers a thorough overview of the changing scene of XAI…

General Finance · Quantitative Finance 2025-11-12 Md Talha Mohsin , Nabid Bin Nasim