Today, with respect to the increasing growth of demand to get credit from the customers of banks and finance and credit institutions, using an effective and efficient method to decrease the risk of non-repayment of credit given is very necessary. Assessment of customers' credit is one of the most important and the most essential duties of banks and institutions, and if an error occurs in this field, it would leads to the great losses for banks and institutions. Thus, using the predicting computer systems has been significantly progressed in recent decades. The data that are provided to the credit institutions' managers help them to make a straight decision for giving the credit or not-giving it. In this paper, we will assess the customer credit through a combined classification using artificial neural networks, genetics algorithm and Bayesian probabilities simultaneously, and the results obtained from three methods mentioned above would be used to achieve an appropriate and final result. We use the K_folds cross validation test in order to assess the method and finally, we compare the proposed method with the methods such as Clustering-Launched Classification (CLC), Support Vector Machine (SVM) as well as GA+SVM where the genetics algorithm has been used to improve them.
Credit risk modelling is an integral part of the global financial system. While there has been great attention paid to neural network models for credit default prediction, such models often lack the required interpretation mechanisms and measures of the uncertainty around their predictions. This work develops and compares Bayesian Neural Networks(BNNs) for credit card default modelling. This includes a BNNs trained by Gaussian approximation and the first implementation of BNNs trained by Hybrid Monte Carlo(HMC) in credit risk modelling. The results on the Taiwan Credit Dataset show that BNNs with Automatic Relevance Determination(ARD) outperform normal BNNs without ARD. The results also show that BNNs trained by Gaussian approximation display similar predictive performance to those trained by the HMC. The results further show that BNN with ARD can be used to draw inferences about the relative importance of different features thus critically aiding decision makers in explaining model output to consumers. The robustness of this result is reinforced by high levels of congruence between the features identified as important using the two different approaches for training BNNs.
Imbalanced data classification problem has always been a popular topic in the field of machine learning research. In order to balance the samples between majority and minority class. Oversampling algorithm is used to synthesize new minority class samples, but it could bring in noise. Pointing to the noise problems, this paper proposed a denoising autoencoder neural network (DAE) algorithm which can not only oversample minority class sample through misclassification cost, but it can denoise and classify the sampled dataset. Through experiments, compared with the denoising autoencoder neural network (DAE) with oversampling process and traditional fully connected neural networks, the results showed the proposed algorithm improves the classification accuracy of minority class of imbalanced datasets.
The main reason behind deep learning is the idea that, artificial intelligence should draw inspiration from the brain. This perspective gave rise to the "Neural Network" terminology. The brain contains billions of neurons with tens of thousands of connections between them. Deep learning algorithms resemble the brain in many conditions, as both the brain and deep learning models involve a vast number of computation units (Neurons) that are not extraordinarily intelligent in isolation but become intelligent when they interact with each other.