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1 – 2 of 2Maher Ala’raj, Maysam Abbod and Mohammed Radi
The purpose of this study is to propose an objective and efficient method for assessing credit risk by introducing and investigating to a greater extent the applicability of…
Abstract
Purpose
The purpose of this study is to propose an objective and efficient method for assessing credit risk by introducing and investigating to a greater extent the applicability of credit scoring models in the Jordanian banks and to what range they can be used to achieve their strategic and business objectives.
Design/methodology/approach
The research methodology comprises two phases. The first phase is the model development. Three modeling techniques are used to build the scoring models, namely, logistic regression (LR), artificial neural network (NN) and support vector machine (SVM), and the best performing model is selected for next stage. The second phase is two-fold: linking the credit expert knowledge in a way that can enhance the outcomes of the scoring model and a profitability test to explore if the selected model is efficient in meeting banks’ strategic and business objectives.
Findings
The findings showed that LR model outperformed both ANN and SVM across various performance indicators. The LR model also fits best with achieving the bank’s strategic and business objectives.
Originality/value
To the best of the authors’ knowledge, this study is the first that applied several modeling and classification techniques for Jordanian banks and calibrated the best model in terms of its strategic and business objectives. Furthermore, credit experts’ knowledge was engaged with the scoring model to determine its efficiency and reliability against the sole use of an automated scoring model in the hope to encourage the application of credit scoring models as an advisory tool for credit decisions.
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Keywords
Yuxiang Shan, Qin Ren, Gang Yu, Tiantian Li and Bin Cao
Internet marketing underground industry users refer to people who use technology means to simulate a large number of real consumer behaviors to obtain marketing activities rewards…
Abstract
Purpose
Internet marketing underground industry users refer to people who use technology means to simulate a large number of real consumer behaviors to obtain marketing activities rewards illegally, which leads to increased cost of enterprises and reduced effect of marketing. Therefore, this paper aims to construct a user risk assessment model to identify potential underground industry users to protect the interests of real consumers and reduce the marketing costs of enterprises.
Design/methodology/approach
Method feature extraction is based on two aspects. The first aspect is based on traditional statistical characteristics, using density-based spatial clustering of applications with noise clustering method to obtain user-dense regions. According to the total number of users in the region, the corresponding risk level of the receiving address is assigned. So that high-quality address information can be extracted. The second aspect is based on the time period during which users participate in activities, using frequent item set mining to find multiple users with similar operations within the same time period. Extract the behavior flow chart according to the user participation, so that the model can mine the deep relationship between the participating behavior and the underground industry users.
Findings
Based on the real underground industry user data set, the features of the data set are extracted by the proposed method. The features are experimentally verified by different models such as random forest, fully-connected layer network, SVM and XGBOST, and the proposed method is comprehensively evaluated. Experimental results show that in the best case, our method can improve the F1-score of traditional models by 55.37%.
Originality/value
This paper investigates the relative importance of static information and dynamic behavior characteristics of users in predicting underground industry users, and whether the absence of features of these categories affects the prediction results. This investigation can go a long way in aiding further research on this subject and found the features which improved the accuracy of predicting underground industry users.
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