相关论文: Improving a Credit Scoring Model by Incorporating …

To enhance the performance of the recommender system, side information is extensively explored with various features (e.g., visual features and textual features). However, there are some demerits of side information: (1) the extra data is…

Credit scoring models are the primary instrument used by financial institutions to manage credit risk. The scarcity of research on behavioral scoring is due to the difficult data access. Financial institutions have to maintain the privacy…

We consider estimation under model misspecification where there is a model mismatch between the underlying system, which generates the data, and the model used during estimation. We propose a model misspecification framework which enables a…

The digitalization of credit scoring has become essential for financial institutions and commercial banks, especially in the era of digital transformation. Machine learning techniques are commonly used to evaluate customers'…

Very often features come with their own vectorial descriptions which provide detailed information about their properties. We refer to these vectorial descriptions as feature side-information. In the standard learning scenario, input is…

In strategic classification, an institution (e.g., a bank) anticipates adaptation from users who change their features to increase utility in a classification task (e.g., loan repayment). Since a key challenge is the distribution shift…

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,…

This paper presents two cases of random banking data generators based on migration matrices and scoring rules. The banking data generator is a new hope in researches of finding the proving method of comparisons of various credit scoring…

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…

We develop a model to predict consumer default based on deep learning. We show that the model consistently outperforms standard credit scoring models, even though it uses the same data. Our model is interpretable and is able to provide a…

Regulatory stress tests have become one of the main tools for setting capital requirements at the largest U.S. banks. The Federal Reserve uses confidential models to evaluate bank-specific outcomes for bank-specific portfolios in shared…

Access to capital is a major constraint for economic growth in the developing world. Yet those attempting to lend in this space face high defaults due to their inability to distinguish creditworthy borrowers from the rest. In this paper, we…

There has been an increased need for secondary means of credit evaluation by both traditional banking organizations as well as peer-to-peer lending entities. This is especially important in the present technological era where sticking with…

Establishing a new business may involve Knowledge acquisition in various areas, from personal to business and marketing sources. This task is challenging as it requires examining various data islands to uncover hidden patterns and unknown…

We show that the incorporation of any new piece of information allows for improved decision making in the sense that the expected costs of an optimal decision decrease (or, in boundary cases where no or not enough new information is…

The credit rating is an evaluation of a company's credit risk that values the ability to pay back the debt and predict the likelihood of the debtor defaulting. There are various features influencing credit rating. Therefore, it is essential…

Predicting default is essential for banks to ensure profitability and financial stability. While modern machine learning methods often outperform traditional regression techniques, their lack of transparency limits their use in regulated…

In this paper we present the impact of alternative data that originates from an app-based marketplace, in contrast to traditional bureau data, upon credit scoring models. These alternative data sources have shown themselves to be immensely…

The use of multiple modalities (e.g., face and fingerprint) or multiple algorithms (e.g., three face comparators) has shown to improve the recognition accuracy of an operational biometric system. Over time a biometric system may evolve to…

We study factor models augmented by observed covariates that have explanatory powers on the unknown factors. In financial factor models, the unknown factors can be reasonably well explained by a few observable proxies, such as the…