Bussmann, Niklas and Giudici, Paolo and Marinelli, Dimitri and Papenbrock, Jochen (2020) Explainable AI in Fintech Risk Management. Frontiers in Artificial Intelligence, 3. ISSN 2624-8212
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Abstract
The paper proposes an explainable AI model that can be used in fintech risk management and, in particular, in measuring the risks that arise when credit is borrowed employing peer to peer lending platforms. The model employs Shapley values, so that AI predictions are interpreted according to the underlying explanatory variables. The empirical analysis of 15,000 small and medium companies asking for peer to peer lending credit reveals that both risky and not risky borrowers can be grouped according to a set of similar financial characteristics, which can be employed to explain and understand their credit score and, therefore, to predict their future behavior.
Item Type: | Article |
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Subjects: | Impact Archive > Multidisciplinary |
Depositing User: | Managing Editor |
Date Deposited: | 27 Dec 2022 04:51 |
Last Modified: | 31 Jul 2024 12:15 |
URI: | http://research.sdpublishers.net/id/eprint/1257 |