Exploring Deep Learning Algorithm for Credit Scoring

This study investigates the use of deep learning algorithms in credit scoring, a crucial instrument for determining a borrower's creditworthiness. As technology develops, there is a rising movement to incorporate technology including credit scoring into the financial sector. Numerous research endeavours have attempted to ascertain whether deep learning can enhance the credit scoring system. The capacity of deep learning algorithms to study and understand vast volumes of data makes them extremely effective methods with noticeable increases in classification performance in a variety of machine learning applications. This study assesses the effectiveness of models on deep learning using an extensive dataset of borrower data. In addition to using three methods Deep Learning, Convolutional Neura Network (CNN), Feedfordward Neural Network (FNN), and Autoendoders, classification metrics were used as evalution tools. Deep learning algorithms are therefore thought to hold a lot of promise for raising the credit scoring system's precision and effectiveness.