Related papers: Enhancing Credit Default Prediction Using Boruta F…
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…
Credit scoring is vital in the financial industry, assessing the risk of lending to credit card applicants. Traditional credit scoring methods face challenges with large datasets and data imbalance between creditworthy and non-creditworthy…
Credit scoring models face a critical challenge: severe class imbalance, with default rates typically below 10%, which hampers model learning and predictive performance. While synthetic data augmentation techniques such as SMOTE and ADASYN…
In the era of big data, the utilization of credit-scoring models to determine the credit risk of applicants accurately becomes a trend in the future. The conventional machine learning on credit scoring data sets tends to have poor…
Banks utilize credit scoring as an important indicator of financial strength and eligibility for credit. Scoring models aim to assign statistical odds or probabilities for predicting if there is a risk of nonpayment in relation to many…
Effective credit risk management is fundamental to financial decision-making, requiring robust models to predict default probabilities and classify financial entities. Traditional machine learning approaches face significant challenges when…
Machine learning classifiers often stumble over imbalanced datasets where classes are not equally represented. This inherent bias towards the majority class may result in low accuracy in labeling minority class. Imbalanced learning is…
Credit scoring is an essential tool used by global financial institutions and credit lenders for financial decision making. In this paper, we introduce a new method based on Gaussian Mixture Model (GMM) to forecast the probability of…
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…
Imbalanced datasets, where one class significantly outnumbers others, remain a persistent challenge in machine learning, often biasing predictions toward the majority class and degrading classifier performance. This paper provides a…
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…
Accurate prediction of loan defaults is a central challenge in credit risk management, particularly in modern financial datasets characterised by nonlinear relationships, class imbalance, and evolving borrower behaviour. Traditional…
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…
We aim at developing and improving the imbalanced business risk modeling via jointly using proper evaluation criteria, resampling, cross-validation, classifier regularization, and ensembling techniques. Area Under the Receiver Operating…
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…
Mortgage default prediction is a core task in financial risk management, and machine learning models are increasingly used to estimate default probabilities and provide interpretable signals for downstream decisions. In real-world mortgage…
Credit risk prediction is an effective way of evaluating whether a potential borrower will repay a loan, particularly in peer-to-peer lending where class imbalance problems are prevalent. However, few credit risk prediction models for…
Prediction of post-loan default is an important task in credit risk management, and can be addressed by detection of financial anomalies using machine learning. This study introduces a ResE-BiLSTM model, using a sliding window technique,…
Accurate prediction of future loan defaults is a critical capability for financial institutions that provide lines of credit. For institutions that issue and manage extensive loan volumes, even a slight improvement in default prediction…
Class imbalance classification is a challenging research problem in data mining and machine learning, as most of the real-life datasets are often imbalanced in nature. Existing learning algorithms maximise the classification accuracy by…