Fuzzy and Neuro-Symbolic Approaches to Assessment of Bank Loan Applicants
نویسندگان
چکیده
In this paper, we present the design, implementation and evaluation of intelligent methods that assess bank loan applications. Assessment concerns the ability/possibility of satisfactorily dealing with loan demands. Different loan programs from different banks may be proposed according to the applicant’s characteristics. For each loan program, corresponding attributes (e.g. interest, amount of money that can be loaned) are also calculated. For these tasks, two separate intelligent systems have been developed and evaluated: a fuzzy expert system and a neuro-symbolic expert system. The former employs fuzzy rules based on knowledge elicited from experts. The latter is based on neurules, a type of neuro-symbolic rules that combine a symbolic (production rules) and a connectionist (adaline unit) representation. Neurules were produced from available patterns. Evaluation showed that performance of both systems is close although their knowledge bases were derived from different types of source
منابع مشابه
The Comparison of Credit Risk between Artificial Neural Network and Logistic Regression Models in Tose-Taavon Bank in Guilan
One of the most important issues always facing banks and financial institutes is the issue of credit risk or the possibility of failure in the fulfillment of obligations by applicants who are receiving credit facilities. The considerable number of banks’ delayed loan payments all around the world shows the importance of this issue and the necessary consideration of this topic. Accordingly...
متن کاملCombination of feature selection and optimized fuzzy apriori rules: the case of credit scoring
Credit scoring is an important topic and banks collect different data from their loan applicants to make appropriate and correct decisions. Rule bases are favourite in credit decision making because of their ability to explicitly distinguish between good and bad applicants. This paper, uses four feature selection approaches as features pre-processing combined with fuzzy apriori. These methods a...
متن کاملFuzzy Neural Networks and Evolving Connectionist Systems for Intelligent Decision Support
The paper presents a general framework of connectionistbased, intelligent decision support systems and its realisation with the use of fuzzy neural networks FuNNs and evolving fuzzy neural networks EFuNNs. FuNNs and EFuNNs facilitate learning from data, fuzzy rule insertion, rule extraction, and adaptation. Several applications of this framework on real problems are presented as case studies, t...
متن کاملInvestigating the missing data effect on credit scoring rule based models: The case of an Iranian bank
Credit risk management is a process in which banks estimate probability of default (PD) for each loan applicant. Data sets of previous loan applicants are built by gathering their data, and these internal data sets are usually completed using external credit bureau’s data and finally used for estimating PD in banks. There is also a continuous interest for bank to use rule based classifiers to b...
متن کاملMatrix Sequential Hybrid Credit Scorecard Based on Logistic Regression and Clustering
The Basel II Accord pointed out benefits of credit risk management through internal models to estimate Probability of Default (PD). Banks use default predictions to estimate the loan applicants’ PD. However, in practice, PD is not useful and banks applied credit scorecards for their decision making process. Also the competitive pressures in lending industry forced banks to use profit scorecards...
متن کامل