A literature review on the application of evolutionary computing to credit scoring
- 1 September 2013
- journal article
- review article
- Published by Taylor & Francis Ltd in Journal of the Operational Research Society
- Vol. 64 (9), 1384-1399
- https://doi.org/10.1057/jors.2012.145
Abstract
The last years have seen the development of many credit scoring models for assessing the creditworthiness of loan applicants. Traditional credit scoring methodology has involved the use of statistical and mathematical programming techniques such as discriminant analysis, linear and logistic regression, linear and quadratic programming, or decision trees. However, the importance of credit grant decisions for financial institutions has caused growing interest in using a variety of computational intelligence techniques. This paper concentrates on evolutionary computing, which is viewed as one of the most promising paradigms of computational intelligence. Taking into account the synergistic relationship between the communities of Economics and Computer Science, the aim of this paper is to summarize the most recent developments in the application of evolutionary algorithms to credit scoring by means of a thorough review of scientific articles published during the period 2000–2012.This work has partially been supported by the Spanish Ministry of Education and Science under grant TIN2009-14205 and the Generalitat Valenciana under grant PROMETEO/2010/028This publication has 68 references indexed in Scilit:
- A case-based reasoning model that uses preference theory functions for credit scoringExpert Systems with Applications, 2012
- A comparative survey of artificial intelligence applications in finance: artificial neural networks, expert system and hybrid intelligent systemsNeural Computing & Applications, 2010
- Neuro-Based Artificial Intelligence Model for Loan DecisionsAmerican Journal of Economics and Business Administration, 2010
- Credit scoring using support vector machines with direct search for parameters selectionSoft Computing, 2008
- Building credit scoring models using genetic programmingExpert Systems with Applications, 2005
- The Variable Selection ProblemJournal of the American Statistical Association, 2000
- Optimisation of structure representation for QSAR studiesAnalytica Chimica Acta, 1999
- Wrappers for feature subset selectionArtificial Intelligence, 1997
- Statistical Classification Methods in Consumer Credit Scoring: A ReviewJournal of the Royal Statistical Society Series A: Statistics in Society, 1997
- Credit-scoring models in the credit-union environment using neural networks and genetic algorithmsIMA Journal of Management Mathematics, 1997