Credit Risk Assessment using Machine Learning Algorithms

Attigeri, Girija V and Pai, Manohara M.M. and Pai, Radhika M (2016) Credit Risk Assessment using Machine Learning Algorithms. Advanced Science Letters, 23 (4). pp. 3649-3653. ISSN 1936-6612

[img] PDF
http___rms.manipal.edu_PublicationEntry_DisplayPdf.aspx_val=__172.16.19.67_rmspdf_00003221_JA_27-09-17-11-07-37.pdf - Published Version
Restricted to Registered users only

Download (305kB) | Request a copy

Abstract

Financial institutions suffer from risk of losing money from bad customers. Specifically banking sectors where the risk of losing money is higher, due to bad loans. This causes economic slowdown of the nation. Hence credit risk assessment is an important research area. In this paper research methodology based framework using diagnostic, cross sectional study is used for risk analysis. Empirical approach is used to build models for credit risk assessment with supervised machine learning algorithms. Two classification and prediction models are built one using Logistic regression and other using Neural Network. Models are evaluated using chi square statistical test. This study infers the significance of using machine learning algorithms in predicting bad customers. For the data set and parameters considered logistic regression has shown better performance.

Item Type: Article
Subjects: Engineering > MIT Manipal > Information and Communication Technology
Depositing User: MIT Library
Date Deposited: 09 Oct 2017 11:18
Last Modified: 09 Oct 2017 11:18
URI: http://eprints.manipal.edu/id/eprint/149779

Actions (login required)

View Item View Item