Advanced User Credit Risk Prediction Model using LightGBM, XGBoost and Tabnet with SMOTEENN

Fuente: arXiv
Saved in:
Bibliographic Details
Main Authors: Yu, Chang, Jin, Yixin, Xing, Qianwen, Zhang, Ye, Guo, Shaobo, Meng, Shuchen
Format: Preprint
Published: 2024
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866916478857510912
author Yu, Chang
Jin, Yixin
Xing, Qianwen
Zhang, Ye
Guo, Shaobo
Meng, Shuchen
author_facet Yu, Chang
Jin, Yixin
Xing, Qianwen
Zhang, Ye
Guo, Shaobo
Meng, Shuchen
contents Bank credit risk is a significant challenge in modern financial transactions, and the ability to identify qualified credit card holders among a large number of applicants is crucial for the profitability of a bank'sbank's credit card business. In the past, screening applicants'applicants' conditions often required a significant amount of manual labor, which was time-consuming and labor-intensive. Although the accuracy and reliability of previously used ML models have been continuously improving, the pursuit of more reliable and powerful AI intelligent models is undoubtedly the unremitting pursuit by major banks in the financial industry. In this study, we used a dataset of over 40,000 records provided by a commercial bank as the research object. We compared various dimensionality reduction techniques such as PCA and T-SNE for preprocessing high-dimensional datasets and performed in-depth adaptation and tuning of distributed models such as LightGBM and XGBoost, as well as deep models like Tabnet. After a series of research and processing, we obtained excellent research results by combining SMOTEENN with these techniques. The experiments demonstrated that LightGBM combined with PCA and SMOTEENN techniques can assist banks in accurately predicting potential high-quality customers, showing relatively outstanding performance compared to other models.
format Preprint
id arxiv_https___arxiv_org_abs_2408_03497
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Advanced User Credit Risk Prediction Model using LightGBM, XGBoost and Tabnet with SMOTEENN
Yu, Chang
Jin, Yixin
Xing, Qianwen
Zhang, Ye
Guo, Shaobo
Meng, Shuchen
Machine Learning
Artificial Intelligence
Bank credit risk is a significant challenge in modern financial transactions, and the ability to identify qualified credit card holders among a large number of applicants is crucial for the profitability of a bank'sbank's credit card business. In the past, screening applicants'applicants' conditions often required a significant amount of manual labor, which was time-consuming and labor-intensive. Although the accuracy and reliability of previously used ML models have been continuously improving, the pursuit of more reliable and powerful AI intelligent models is undoubtedly the unremitting pursuit by major banks in the financial industry. In this study, we used a dataset of over 40,000 records provided by a commercial bank as the research object. We compared various dimensionality reduction techniques such as PCA and T-SNE for preprocessing high-dimensional datasets and performed in-depth adaptation and tuning of distributed models such as LightGBM and XGBoost, as well as deep models like Tabnet. After a series of research and processing, we obtained excellent research results by combining SMOTEENN with these techniques. The experiments demonstrated that LightGBM combined with PCA and SMOTEENN techniques can assist banks in accurately predicting potential high-quality customers, showing relatively outstanding performance compared to other models.
title Advanced User Credit Risk Prediction Model using LightGBM, XGBoost and Tabnet with SMOTEENN
topic Machine Learning
Artificial Intelligence
url https://arxiv.org/abs/2408.03497