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An automated credit intelligence learning system

An automated credit intelligence learning system To accelerate the financial services, microfinance requires tools and technologies to provide an automated dynamic credit decision which leads to an accountable and efficient system. Considering a case on loan disbursement in the micro-business sector, this study presents a very comprehensive innovation, namely automated credit intelligence learning system (ACILES) which consists of dynamic credit scoring and optimal dynamic credit pricing: derived from tenor, rate, installment and plafond (TRIP). While credit pricing is obtained from the profit based pricing and simulation process, the credit scoring is developed by modelling not only the borrower's profile, but also psychometric analysis of the perception of borrower and surveyor via item response model which is combined with multivariate adaptive regression splines (MARS) model and structural equation modelling (SEM), respectively. By performing the experiment, it is clearly proved that ACILES can be implemented in order to augment microfinance business capacity. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Electronic Finance Inderscience Publishers

An automated credit intelligence learning system

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Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd
ISSN
1746-0069
eISSN
1746-0077
DOI
10.1504/ijef.2022.122169
Publisher site
See Article on Publisher Site

Abstract

To accelerate the financial services, microfinance requires tools and technologies to provide an automated dynamic credit decision which leads to an accountable and efficient system. Considering a case on loan disbursement in the micro-business sector, this study presents a very comprehensive innovation, namely automated credit intelligence learning system (ACILES) which consists of dynamic credit scoring and optimal dynamic credit pricing: derived from tenor, rate, installment and plafond (TRIP). While credit pricing is obtained from the profit based pricing and simulation process, the credit scoring is developed by modelling not only the borrower's profile, but also psychometric analysis of the perception of borrower and surveyor via item response model which is combined with multivariate adaptive regression splines (MARS) model and structural equation modelling (SEM), respectively. By performing the experiment, it is clearly proved that ACILES can be implemented in order to augment microfinance business capacity.

Journal

International Journal of Electronic FinanceInderscience Publishers

Published: Jan 1, 2022

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