Credit Risk Assessment of Peer-to-Peer Lending Borrower Utilizing BP Neural Network

This paper proposes an innovated approach of risk assessment of borrowers based on the BP neutral network model. Specifically, firstly, referring to the empirical data published by the website ‘peer-to-peer lender’ and the indicators of personal credit risk assessment from commercial bank is an efficient method to pick several valid values through data processing, classification and quantification, then the final modeling indicators are selected by information gain technology. Secondly, the new credit risk assessment model is formed after training the modeling indicators. Meanwhile, several strings of collected testing data would be substituted to find out the default rates which are supposed to be compared with the practical ones on the website and the calculated ones from existing credit risk assessment evaluating models. Last but not the least, the effect of this new method is evaluated.

[1]  Luca Maria Gambardella,et al.  Deep Neural Networks Segment Neuronal Membranes in Electron Microscopy Images , 2012, NIPS.

[2]  Masayuki Higashino,et al.  Management of Streaming Multimedia Content Using Mobile Agent Technology on Pure P2P-based Distributed E-learning System , 2013, 2013 IEEE 27th International Conference on Advanced Information Networking and Applications (AINA).

[3]  Chia-Jung Wu,et al.  Influence of Website Design on Consumer Emotion and Purchase Intention in Travel Websites , 2016, Int. J. Technol. Hum. Interact..

[4]  Fatos Xhafa,et al.  A new system for supporting children with autism spectrum disorder based on IoT and P2P technology , 2014, Int. J. Space Based Situated Comput..

[5]  Atsushi Takeda,et al.  Simple dynamic load balancing mechanism for structured P2P network and its evaluation , 2012, Int. J. Grid Util. Comput..

[6]  David M. Himmelblau,et al.  Process control via artificial neural networks and reinforcement learning , 1992 .

[7]  Tomoya Enokido,et al.  Design and evaluation of algorithms for obtaining objective trustworthiness on acquaintances in P2P overlay networks , 2011, Int. J. Grid Util. Comput..

[8]  Antonella Di Stefano,et al.  QoS-aware services composition in P2PGrid environments , 2011, Int. J. Grid Util. Comput..

[9]  K J Holyoak,et al.  A connectionist view of cognition: parallel distributed processing. , 1987, Science.

[10]  Nick Antonopoulos,et al.  A dynamically semantic platform for efficient information retrieval in P2P networks , 2012, Int. J. Grid Util. Comput..

[11]  John H. Holland,et al.  Tests on a cell assembly theory of the action of the brain, using a large digital computer , 1956, IRE Trans. Inf. Theory.