Credit scoring model based on Baum-Welch method

Author

Benyacoub, Badreddine ; El Bernoussi, Souad ; Zoglat, Abdelhak

Author_Institution

Lab. of Math., Comput. Sci. & Applic., Univ. Mohammed V-Agdal, Rabat, Morocco

fYear

2013

fDate

27-30 May 2013

Firstpage

1

Lastpage

5

Abstract

Nowadays, credit scoring has studied both in academic world and the business community. Many modeling techniques have been developed to be useful in domain of credit scoring. This paper establishes a credit scoring model via an iterative procedure approach, Baum-Welch method. It is a novel method applied to solve credit scoring problems, and to explore a good accuracy model. The algorithm is successfully applied to a real credit problem, and the application procedure is illustrated in German data set. The experiment of this model, is proved to its high efficiency and evaluated its significant value on credit scoring.

Keywords

credit transactions; hidden Markov models; iterative methods; Baum-Welch method; German data set; academic world; business community; credit scoring model; hidden Markov model; iterative procedure approach; modeling techniques; real credit problem; Accuracy; Computational modeling; Data models; Estimation; Hidden Markov models; Mathematical model; Silicon;

fLanguage

English

Publisher

ieee

Conference_Titel

Computer Systems and Applications (AICCSA), 2013 ACS International Conference on

Conference_Location

Ifrane

ISSN

2161-5322

Type

conf

DOI

10.1109/AICCSA.2013.6616489

Filename

6616489