Credit Risk Evaluation in Peer-to-peer Lending With Linguistic Data Transformation and Supervised Learning

Simple item page
dc.contributor.authorMezei, Jozsef
dc.contributor.authorByanjankar, Ajay
dc.contributor.authorHeikkilä, Markku
dc.date.accessioned2017-12-28T00:47:56Z
dc.date.available2017-12-28T00:47:56Z
dc.date.issued2018-01-03
dc.description.abstractThe widespread availability of various peer-to-peer lending solutions is rapidly changing the landscape of ï¬ nancial services. Beside the natural advantages over traditional services,a relevant problem in the domain is to correctly assess the risk associated with borrowers. In contrast to traditional ï¬ nancial services industries, in peer-to-peer lending the unsecured nature of loans as well as the relative novelty of the platforms make the assessment of risk a difï¬ cult problem. In this article we propose to use traditional machine learning methods enhanced with fuzzy set theory based transformation of data to improve the quality of identifying loans with high likelihood of default. We assess the proposed approach on a real-life dataset from one of the largest peer-to-peer platforms in Europe. The results demonstrate that (i) traditional classiï¬ cation algorithms show good performance in classifying borrowers, and (ii) their performance can be improved using linguistic data transformation
dc.format.extent10 pages
dc.identifier.doi10.24251/HICSS.2018.169
dc.identifier.isbn978-0-9981331-1-9
dc.identifier.urihttp://hdl.handle.net/10125/50056
dc.language.isoeng
dc.relation.ispartofProceedings of the 51st Hawaii International Conference on System Sciences
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectMachine Learning and Network Analytics in Finance
dc.subjectMachine learning, fuzzy logic, peer-to-peer lending, classification
dc.titleCredit Risk Evaluation in Peer-to-peer Lending With Linguistic Data Transformation and Supervised Learning
dc.typeConference Paper
dc.type.dcmiText

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
paper0169.pdf
Size:
306.67 KB
Format:
Adobe Portable Document Format
Download

Collections

Machine Learning and Network Analytics in Finance