A Hybrid Meta-Learner Technique for Credit Scoring of Banks’ Customers
Journal Title: Engineering, Technology & Applied Science Research - Year 2017, Vol 7, Issue 5
Abstract
Financial institutions are exposed to credit risk due to issuance of consumer loans. Thus, developing reliable credit scoring systems is very crucial for them. Since, machine learning techniques have demonstrated their applicability and merit, they have been extensively used in credit scoring literature. Recent studies concentrating on hybrid models through merging various machine learning algorithms have revealed compelling results. There are two types of hybridization methods namely traditional and ensemble methods. This study combines both of them and comes up with a hybrid meta-learner model. The structure of the model is based on the traditional hybrid model of ‘classification + clustering’ in which the stacking ensemble method is employed in the classification part. Moreover, this paper compares several versions of the proposed hybrid model by using various combinations of classification and clustering algorithms. Hence, it helps us to identify which hybrid model can achieve the best performance for credit scoring purposes. Using four real-life credit datasets, the experimental results show that the model of (KNN-NN-SVMPSO)-(DL)-(DBSCAN) delivers the highest prediction accuracy and the lowest error rates.
Authors and Affiliations
A. G. Armaki, M. F. Fallah, M. Alborzi, A. Mohammadzadeh
Keywords
Related Articles
- EP ID EP154762
- DOI -
- Views 238
- Downloads 0
Application of Hybrid HS and Tabu Search Algorithm for Optimal Location of FACTS Devices to Reduce Power Losses in Power Systems
Power networks continue to grow following the annual growth of energy demand. As constructing new energy generation facilities bears a high cost, minimizing power grid losses becomes essential to permit low cost energy t...
An MTSS Based Underground Coal Mining Simulation Model
In the frames of simulation system, a specialized library of simulating models of mining equipment and coal seam (MTSS) was implemented. Using the specialized simulating model library of technological mining equipment an...
Influence of BCH and LDPC Code Parameters on the BER Characteristic of Satellite DVB Channels
This article presents the results of a study on the noise immunity of DVB channels when higher-order M-ary APSK modulation schemes and concatenated BCH-LDPC codes are used. Dependencies to determine the probability at th...
A Circuit for the Square Root of the Sum of Two Squared Voltages using an IC LM311 Open Collector Comparator
A circuit which accepts two input dc voltages V1 and V2 and provides an output dc voltage VO equal to the square root of the sum of the two squared voltages of V1 and V2, using an LM311 open collector comparator based si...
Enhancement of Edge-based Image Quality Measures Using Entropy for Histogram Equalization-based Contrast Enhancement Techniques
An Edge-based image quality measure (IQM) technique for the assessment of histogram equalization (HE)-based contrast enhancement techniques has been proposed that outperforms the Absolute Mean Brightness Error (AMBE) and...