Empowering Credit Scoring Systems with Quantum-Enhanced Machine Learning

Fuente: arXiv
Gespeichert in:
Bibliographische Detailangaben
Hauptverfasser: Mancilla, Javier, Sequeira, André, Tagliani, Tomas, Llaneza, Francisco, Beiza, Claudio
Format: Preprint
Veröffentlicht: 2024
Schlagworte:
Online-Zugang:
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
_version_ 1866911825495326720
author Mancilla, Javier
Sequeira, André
Tagliani, Tomas
Llaneza, Francisco
Beiza, Claudio
author_facet Mancilla, Javier
Sequeira, André
Tagliani, Tomas
Llaneza, Francisco
Beiza, Claudio
contents Quantum Kernels are projected to provide early-stage usefulness for quantum machine learning. However, highly sophisticated classical models are hard to surpass without losing interpretability, particularly when vast datasets can be exploited. Nonetheless, classical models struggle once data is scarce and skewed. Quantum feature spaces are projected to find better links between data features and the target class to be predicted even in such challenging scenarios and most importantly, enhanced generalization capabilities. In this work, we propose a novel approach called Systemic Quantum Score (SQS) and provide preliminary results indicating potential advantage over purely classical models in a production grade use case for the Finance sector. SQS shows in our specific study an increased capacity to extract patterns out of fewer data points as well as improved performance over data-hungry algorithms such as XGBoost, providing advantage in a competitive market as it is the FinTech and Neobank regime.
format Preprint
id arxiv_https___arxiv_org_abs_2404_00015
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Empowering Credit Scoring Systems with Quantum-Enhanced Machine Learning
Mancilla, Javier
Sequeira, André
Tagliani, Tomas
Llaneza, Francisco
Beiza, Claudio
Risk Management
Machine Learning
Statistical Finance
Quantum Physics
Quantum Kernels are projected to provide early-stage usefulness for quantum machine learning. However, highly sophisticated classical models are hard to surpass without losing interpretability, particularly when vast datasets can be exploited. Nonetheless, classical models struggle once data is scarce and skewed. Quantum feature spaces are projected to find better links between data features and the target class to be predicted even in such challenging scenarios and most importantly, enhanced generalization capabilities. In this work, we propose a novel approach called Systemic Quantum Score (SQS) and provide preliminary results indicating potential advantage over purely classical models in a production grade use case for the Finance sector. SQS shows in our specific study an increased capacity to extract patterns out of fewer data points as well as improved performance over data-hungry algorithms such as XGBoost, providing advantage in a competitive market as it is the FinTech and Neobank regime.
title Empowering Credit Scoring Systems with Quantum-Enhanced Machine Learning
topic Risk Management
Machine Learning
Statistical Finance
Quantum Physics
url https://arxiv.org/abs/2404.00015