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
view more