Construction and Application of the Online Finance Credit Risk Rating Model Based on the Artificial Neural Network

The low-cost, highly efficient online finance credit provides underfunded individuals and small and medium enterprises (SMEs) with an indispensable credit channel. Most of the previous studies focus on the client crediting and screening of online finance. Few have studied the risk rating under a com...

Full description

Saved in:
Bibliographic Details
Main Authors: Yufeng Mao, Zongrun Wang, Xing Li, Chenggang Li, Hanning Wang
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2021/6926216
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849399034373996544
author Yufeng Mao
Zongrun Wang
Xing Li
Chenggang Li
Hanning Wang
author_facet Yufeng Mao
Zongrun Wang
Xing Li
Chenggang Li
Hanning Wang
author_sort Yufeng Mao
collection DOAJ
description The low-cost, highly efficient online finance credit provides underfunded individuals and small and medium enterprises (SMEs) with an indispensable credit channel. Most of the previous studies focus on the client crediting and screening of online finance. Few have studied the risk rating under a complete credit risk management system. This paper introduces the improved neural network technology to the credit risk rating of online finance. Firstly, the study period was divided into the early phase and late phase after the launch of an online finance credit product. In the early phase, there are few manually labeled samples and many unlabeled samples. Therefore, a cold start method was designed for the credit risk rating of online finance, and the similarity and abnormality of credit default were calculated. In the late phase, there are few unlabeled samples. Hence, the backpropagation neural network (BPNN) was improved for online finance credit risk rating. Our strategy was proved valid through experiments.
format Article
id doaj-art-9dc144d50c01416587f1cb29f08af3b4
institution Kabale University
issn 1026-0226
1607-887X
language English
publishDate 2021-01-01
publisher Wiley
record_format Article
series Discrete Dynamics in Nature and Society
spelling doaj-art-9dc144d50c01416587f1cb29f08af3b42025-08-20T03:38:26ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2021-01-01202110.1155/2021/69262166926216Construction and Application of the Online Finance Credit Risk Rating Model Based on the Artificial Neural NetworkYufeng Mao0Zongrun Wang1Xing Li2Chenggang Li3Hanning Wang4Business School, Central South University, Changsha 410083, ChinaBusiness School, Central South University, Changsha 410083, ChinaSchool of Management, Nanchang University, Nanchang 330031, ChinaNew Structure Finance Research Center, Guizhou University of Finance and Economics, Guiyang 550025, ChinaSchool of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang 550025, ChinaThe low-cost, highly efficient online finance credit provides underfunded individuals and small and medium enterprises (SMEs) with an indispensable credit channel. Most of the previous studies focus on the client crediting and screening of online finance. Few have studied the risk rating under a complete credit risk management system. This paper introduces the improved neural network technology to the credit risk rating of online finance. Firstly, the study period was divided into the early phase and late phase after the launch of an online finance credit product. In the early phase, there are few manually labeled samples and many unlabeled samples. Therefore, a cold start method was designed for the credit risk rating of online finance, and the similarity and abnormality of credit default were calculated. In the late phase, there are few unlabeled samples. Hence, the backpropagation neural network (BPNN) was improved for online finance credit risk rating. Our strategy was proved valid through experiments.http://dx.doi.org/10.1155/2021/6926216
spellingShingle Yufeng Mao
Zongrun Wang
Xing Li
Chenggang Li
Hanning Wang
Construction and Application of the Online Finance Credit Risk Rating Model Based on the Artificial Neural Network
Discrete Dynamics in Nature and Society
title Construction and Application of the Online Finance Credit Risk Rating Model Based on the Artificial Neural Network
title_full Construction and Application of the Online Finance Credit Risk Rating Model Based on the Artificial Neural Network
title_fullStr Construction and Application of the Online Finance Credit Risk Rating Model Based on the Artificial Neural Network
title_full_unstemmed Construction and Application of the Online Finance Credit Risk Rating Model Based on the Artificial Neural Network
title_short Construction and Application of the Online Finance Credit Risk Rating Model Based on the Artificial Neural Network
title_sort construction and application of the online finance credit risk rating model based on the artificial neural network
url http://dx.doi.org/10.1155/2021/6926216
work_keys_str_mv AT yufengmao constructionandapplicationoftheonlinefinancecreditriskratingmodelbasedontheartificialneuralnetwork
AT zongrunwang constructionandapplicationoftheonlinefinancecreditriskratingmodelbasedontheartificialneuralnetwork
AT xingli constructionandapplicationoftheonlinefinancecreditriskratingmodelbasedontheartificialneuralnetwork
AT chenggangli constructionandapplicationoftheonlinefinancecreditriskratingmodelbasedontheartificialneuralnetwork
AT hanningwang constructionandapplicationoftheonlinefinancecreditriskratingmodelbasedontheartificialneuralnetwork