Federated Learning-Enabled Financial Risk Intelligence System for U.S. SMEs: A Privacy-Preserving AI Framework

This paper presents a privacy-preserving, federated learning–based AI framework designed to enhance fraud detection and credit risk forecasting for U.S. small and medium-sized enterprises (SMEs). By enabling decentralized model training across multiple financial institutions without transferring raw data, the system ensures compliance with regulations such as GLBA and CCPA. The architecture integrates differential privacy, secure aggregation, and real-time anomaly detection to provide scalable and ethical financial intelligence. Experimental results demonstrate strong model performance, robust privacy guarantees, and practical applicability for under-resourced institutions. This research supports inclusive financial innovation, regulatory readiness, and responsible AI adoption in high-stakes economic infrastructure.

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-05-16
DOI
https://doi.org/10.5281/zenodo.15442966
Primary Topic
Financial Distress and Bankruptcy Prediction
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Federated Learning-Enabled Financial Risk Intelligence System for U.S. SMEs: A Privacy-Preserving AI Framework

Zenodo (CERN European Organization for Nuclear Research)
Financial Distress and Bankruptcy Prediction
article

Federated Learning-Enabled Financial Risk Intelligence System for U.S. SMEs: A Privacy-Preserving AI Framework

article en

Abstract

This paper presents a privacy-preserving, federated learning–based AI framework designed to enhance fraud detection and credit risk forecasting for U.S. small and medium-sized enterprises (SMEs). By enabling decentralized model training across multiple financial institutions without transferring raw data, the system ensures compliance with regulations such as GLBA and CCPA. The architecture integrates differential privacy, secure aggregation, and real-time anomaly detection to provide scalable and ethical financial intelligence. Experimental results demonstrate strong model performance, robust privacy guarantees, and practical applicability for under-resourced institutions. This research supports inclusive financial innovation, regulatory readiness, and responsible AI adoption in high-stakes economic infrastructure.

Zenodo (CERN European Organization for Nuclear Research)
Industry, innovation and infrastructure
Openalex Percentile: Top 39%
Financial Distress and Bankruptcy Prediction
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.