Credit Default Mining Using Combined Machine Learning and Heuristic Approach

Understand

Predicting potential credit default accounts in advance is challenging.

• Traditional statistical techniques typically cannot handle large amounts of data and the dynamic nature of fraud and humans.
• To tackle this problem, recent research has focused on artificial and computational intelligence based approaches.
• In this work, we present and validate a heuristic approach to mine potential default accounts in advance where a risk probability is precomputed from all previous data and the risk probability for recent transactions are computed as soon they happen.