Predicting Credit Risk in Peer-to-Peer Lending: A Machine Learning Approach with Few Features

Yu Chieh Cheng, Hui Ting Chang, Chia Yu Lin, Heng Yu Chang

研究成果: 書貢獻/報告類型會議論文篇章同行評審

2 引文 斯高帕斯(Scopus)

摘要

Peer-to-peer (P2P) lending provides borrowers with relatively low borrowing interest rates and gives lenders a channel for investment on an online platform. Since most P2P lending does not require any guarantees, the overdue payment of borrowers results in a massive loss of lending platforms and lenders. Many risk prediction models are proposed to predict credit risk. However, these works build models with more than 50 features, which causes a lot of computation time. Besides, in most P2P lending datasets, the number of non-default data far exceeds the number of default data. These researches ignore the data imbalance issue, leading to inaccurate predictions. Therefore, this study proposes a credit risk prediction system (CRPS) for P2P lending to solve data imbalance issues and only require few features to build the models. We implement a data preprocessing module, a feature selection module, a data synthesis module, and five risk prediction models in CRPS. In experiments, we evaluate CRPS based on the de-identified personal loan dataset of the LendingClub platform. The accuracy of the CRPS can achieve 99%, the recall reaches 0.95, and the F1-Score is 0.97. CRPS can accurately predict credit risk with less than 10 features and tackle data imbalance issues.

原文???core.languages.en_GB???
主出版物標題Proceedings - 2021 International Conference on Technologies and Applications of Artificial Intelligence, TAAI 2021
發行者Institute of Electrical and Electronics Engineers Inc.
頁面295-300
頁數6
ISBN(電子)9781665408257
DOIs
出版狀態已出版 - 2021
事件26th International Conference on Technologies and Applications of Artificial Intelligence, TAAI 2021 - Taichung, Taiwan
持續時間: 18 11月 202120 11月 2021

出版系列

名字Proceedings - 2021 International Conference on Technologies and Applications of Artificial Intelligence, TAAI 2021

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???event.eventtypes.event.conference???26th International Conference on Technologies and Applications of Artificial Intelligence, TAAI 2021
國家/地區Taiwan
城市Taichung
期間18/11/2120/11/21

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