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Application of AI in Credit Scoring Modeling

Application of AI in Credit Scoring Modeling

Paperback

Series: Bestmasters

Business General

ISBN10: 3658401796
ISBN13: 9783658401795
Publisher: Springer Gabler
Published: Dec 8 2022
Pages: 83
Weight: 0.31
Height: 0.24 Width: 5.83 Depth: 8.27
Language: English
The scope of this study is to investigate the capability of AI methods to accurately detect and predict credit risks based on retail borrowers' features. The comparison of logistic regression, decision tree, and random forest showed that machine learning methods are able to predict credit defaults of individuals more accurately than the logit model. Furthermore, it was demonstrated how random forest and decision tree models were more sensitive in detecting default borrowers.

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Business General