Loan Risk Prediction: Comparing Neural Networks and SVMs

Loan risk assessment plays a pivotal role in the financial industry, and predictive models are essential for making informed lending decisions. This research project delves into the domain of loan risk assessment, a critical aspect of the financial industry, by proposing an innovative approach utilizing the Feed Forward Neural Network (FNN) algorithm. The primary focus is on comparing the efficacy of the FNN algorithm with the widely adopted Support Vector Machines (SVM) for loan risk prediction. The objective is to assess the FNN algorithm's effectiveness in predicting loan defaults, aiming for a comprehensive understanding of its performance in comparison to SVM. The results obtained are promising, indicating the superior accuracy of the FNN model compared to SVM. This highlights the potential of the FNN algorithm in revolutionizing loan risk assessment. Our findings underscore the importance of leveraging AI and ML, specifically neural networks, to enhance the accuracy and reliability of loan risk prediction systems. The FNN model's impressive performance positions it as a game-changer in the field, offering enhanced accuracy and reliability in loan risk prediction systems.

Autorentext

La Dra. Kirti Hemant Wanjale trabaja actualmente como profesora en el Departamento de Ingeniería Informática del Instituto Tecnológico Vishwakarma, en Pune. Obtuvo su doctorado en la Facultad de Ingeniería Informática de la SSSTUMS, en Sehore (Madhya Pradesh). Cuenta con 22 años de experiencia. Sus principales intereses de investigación son las redes de sensores inalámbricos y el Internet de las cosas.