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Accurately credit default prediction faces challenges due to imbalanced data and low correlation between features and labels. Existing default prediction studies on the basis of gradient boosting decision trees (GBDT), deep learning…

Computational Engineering, Finance, and Science · Computer Science 2023-12-06 Yandan Tan , Hongbin Zhu , JieWu , Hongfeng Chai

Artificial intelligence (AI) and machine learning (ML) have become vital to remain competitive for financial services companies around the globe. The two models currently competing for the pole position in credit risk management are deep…

Machine Learning · Computer Science 2022-05-24 Marc Schmitt

A high imbalance exists between technical debt and non-technical debt source code comments. Such imbalance affects Self-Admitted Technical Debt (SATD) detection performance, and existing literature lacks empirical evidence on the choice of…

Software Engineering · Computer Science 2021-03-25 Murali Sridharan , Mika Mantyla , Leevi Rantala , Maelick Claes

Class imbalance problems manifest in domains such as financial fraud detection or network intrusion analysis, where the prevalence of one class is much higher than another. Typically, practitioners are more interested in predicting the…

Machine Learning · Statistics 2017-11-16 Peter Xenopoulos

Addressing class imbalance is a central challenge in credit card fraud detection, as it directly impacts predictive reliability in real-world financial systems. To overcome this, the study proposes an enhanced workflow based on the…

Machine Learning · Computer Science 2026-02-09 Reza E. Fazel , Arash Bakhtiary , Siavash A. Bigdeli

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

Class imbalance poses a major challenge for machine learning as most supervised learning models might exhibit bias towards the majority class and under-perform in the minority class. Cost-sensitive learning tackles this problem by treating…

Machine Learning · Computer Science 2022-09-20 Vasileios Iosifidis , Symeon Papadopoulos , Bodo Rosenhahn , Eirini Ntoutsi

In the area of credit risk analytics, current Bankruptcy Prediction Models (BPMs) struggle with (a) the availability of comprehensive and real-world data sets and (b) the presence of extreme class imbalance in the data (i.e., very few…

Machine Learning · Computer Science 2019-11-25 Sheikh Rabiul Islam , William Eberle , Sheikh K. Ghafoor , Sid C. Bundy , Douglas A. Talbert , Ambareen Siraj

Credit default prediction is a tabular learning problem with severe class imbalance, heterogeneous features, and tight latency budgets. Tabular Foundation Models (TFMs) approach this problem through in-context learning, which makes their…

Machine Learning · Computer Science 2026-05-19 Aditya Tanna , Mitul Solanki , Mohamed Bouadi , Nassim Bouarour , Pratinav Seth , Vinay Kumar Sankarapu

This research introduces an innovative method for identifying credit card fraud by combining the SMOTE-KMEANS technique with an ensemble machine learning model. The proposed model was benchmarked against traditional models such as logistic…

Machine Learning · Computer Science 2025-03-28 Yuhan Wang

This study focuses on the problem of credit default prediction, builds a modeling framework based on machine learning, and conducts comparative experiments on a variety of mainstream classification algorithms. Through preprocessing, feature…

Machine Learning · Computer Science 2026-02-24 Shiqi Yang , Ziyi Huang , Wengran Xiao , Xinyu Shen

This paper presents a meta-learning framework for credit risk assessment of Italian Small and Medium Enterprises (SMEs) that explicitly addresses the temporal misalignment of credit scoring models. The approach aligns financial statement…

Risk Management · Quantitative Finance 2026-01-13 O. Didkovskyi , A. Vidali , N. Jean , G. Le Pera

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

A frequent problem in binary classification is class imbalance between a minority and a majority class such as defaults and non-defaults in default prediction. In this article, we introduce a novel binary classification model, the Grabit…

Methodology · Statistics 2019-03-04 Fabio Sigrist , Christoph Hirnschall

Financial distress prediction remains a significant challenge in enterprise risk analysis due to the highly imbalanced nature of real-world financial datasets, where bankrupt or distressed firms typically constitute only a small minority of…

Machine Learning · Computer Science 2026-05-15 Karan Sehgal , Khawar Naveed Bhatti

Class imbalance problem is commonly faced while developing machine learning models for real-life issues. Due to this problem, the fitted model tends to be biased towards the majority class data, which leads to lower precision, recall, AUC,…

Machine Learning · Computer Science 2019-08-20 Md. Adnan Arefeen , Sumaiya Tabassum Nimi , M Sohel Rahman

Severe class imbalance is one of the main conditions that make machine learning in cybersecurity difficult. A variety of dataset preprocessing methods have been introduced over the years. These methods modify the training dataset by…

Machine Learning · Computer Science 2023-03-07 Radovan Haluška , Jan Brabec , Tomáš Komárek

Class imbalance in a dataset is one of the major challenges that can significantly impact the performance of machine learning models resulting in biased predictions. Numerous techniques have been proposed to address class imbalanced…

Machine Learning · Computer Science 2022-10-25 Md Manjurul Ahsan , Md Shahin Ali , Zahed Siddique

Class imbalance in binary classification tasks remains a significant challenge in machine learning, often resulting in poor performance on minority classes. This study comprehensively evaluates three widely-used strategies for handling…

Machine Learning · Computer Science 2024-10-01 Mohamed Abdelhamid , Abhyuday Desai

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…

Machine Learning · Computer Science 2024-10-14 F M Ahosanul Haque , Md. Mahedi Hassan