Forecasting Probability of Default for Consumer Loan Management with Gaussian Mixture Models

Credit scoring is an essential tool used by global financial institutions and credit lenders for financial decision making. In this paper, we introduce a new method based on Gaussian Mixture Model (GMM) to forecast the probability of default for individual loan applicants. Clustering similar customers with each other, our model associates a probability of being healthy to each group. 2020: Hamidreza Arian, Seyed Mohammad Sina Seyfi, Azin Sharifi https://arxiv.org/pdf/2011.07906.pdf