A deep learning model for behavioural credit scoring in banks

The main aim of this paper is to help bank management in scoring credit card clients using machine learning by modelling and predicting the consumer behaviour concerning three aspects: the probability of single and consecutive missed payments for credit card customers, the purchasing behaviour of customers, and grouping customers based on a mathematical expectation of loss. Two models are developed: the first provides the probability of a missed payment during the next month for each customer, which is described as Missed payment prediction Long Short Term Memory model (MP-LSTM), whilst the second estimates the total monthly amount of purchases, which is defined as Purchase Estimation Prediction Long Short Term Memory model (PE-LSTM). Based on both models, a customer behavioural grouping is provided, which can be helpful for the bank’s decision-making. Both models are trained on real credit card transactional datasets. Customer behavioural scores are analysed using classical performance evaluation measures. Calibration analysis of MP-LSTM scores showed that they could be considered as probabilities of missed payments. Obtained purchase estimations were analysed using mean square error and absolute error. The MP-LSTM model was compared to four traditional well-known machine learning algorithms. Experimental results show that, compared with conventional methods based on feature extraction, the consumer credit scoring method based on the MP-LSTM neural network has significantly improved consumer credit scoring

Text Summarization Techniques: A Brief Survey

In recent years, there has been a explosion in the amount of text data from a variety of sources. This volume of text is an invaluable source of information and knowledge which needs to be effectively summarized to be useful. In this review, the main approaches to automatic text summarization are described. We review the different processes for summarization and describe the effectiveness and shortcomings of the different methods.Comment: Some of references format have update

Community Detection and Growth Potential Prediction Using the Stochastic Block Model and the Long Short-term Memory from Patent Citation Networks

Scoring patent documents is very useful for technology management. However, conventional methods are based on static models and, thus, do not reflect the growth potential of the technology cluster of the patent. Because even if the cluster of a patent has no hope of growing, we recognize the patent is important if PageRank or other ranking score is high. Therefore, there arises a necessity of developing citation network clustering and prediction of future citations. In our research, clustering of patent citation networks by Stochastic Block Model was done with the aim of enabling corporate managers and investors to evaluate the scale and life cycle of technology. As a result, we confirmed nested SBM is appropriate for graph clustering of patent citation networks. Also, a high MAPE value was obtained and the direction accuracy achieved a value greater than 50% when predicting growth potential for each cluster by using LSTM.Comment: arXiv admin note: substantial text overlap with arXiv:1904.1204