Credit Risk Assessment in P2P Lending Using LightGBM and Particle Swarm Optimization

Credit risk evaluation is a vital task in the P2P Lending platform. An effective credit risk assessment method in a P2P lending platform can significantly influence investors' decisions. Machine learning algorithm such as LightGBM can be used to evaluate credit risk. However, the results in ev...

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Main Authors: Dasril, Yosza, Muslim, Much Aziz, Al Hakim, M. Faris, Jumanto, Jumanto, Prasetiyo, Budi
Format: Article
Language:English
Published: unipdu 2023
Subjects:
Online Access:http://eprints.uthm.edu.my/8937/
http://eprints.uthm.edu.my/8937/1/J15898_e63681e26a66ff10c518c7ea4a580069.pdf
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author Dasril, Yosza
Muslim, Much Aziz
Al Hakim, M. Faris
Jumanto, Jumanto
Prasetiyo, Budi
author_facet Dasril, Yosza
Muslim, Much Aziz
Al Hakim, M. Faris
Jumanto, Jumanto
Prasetiyo, Budi
author_sort Dasril, Yosza
building UTHM Institutional Repository
collection Online Access
description Credit risk evaluation is a vital task in the P2P Lending platform. An effective credit risk assessment method in a P2P lending platform can significantly influence investors' decisions. Machine learning algorithm such as LightGBM can be used to evaluate credit risk. However, the results in evaluating P2P lending need to be improved. This research aims to improve the accuracy of the LightGBM algorithm by combining it with the Particle Swarm Optimization (PSO) algorithm. This research is novel as it combines LightGBM with PSO for large data from the Lending Club Dataset, which can be accessed on Kaggle.com. The highest accuracy also presented satisfactory results with 98.094% accuracy, 90.514% Recall, and 97.754% NPV, respectively. The combination of LightGBM and PSO has resulted in better outcome.
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spelling uthm-89372023-06-18T01:36:19Z http://eprints.uthm.edu.my/8937/ Credit Risk Assessment in P2P Lending Using LightGBM and Particle Swarm Optimization Dasril, Yosza Muslim, Much Aziz Al Hakim, M. Faris Jumanto, Jumanto Prasetiyo, Budi T Technology (General) Credit risk evaluation is a vital task in the P2P Lending platform. An effective credit risk assessment method in a P2P lending platform can significantly influence investors' decisions. Machine learning algorithm such as LightGBM can be used to evaluate credit risk. However, the results in evaluating P2P lending need to be improved. This research aims to improve the accuracy of the LightGBM algorithm by combining it with the Particle Swarm Optimization (PSO) algorithm. This research is novel as it combines LightGBM with PSO for large data from the Lending Club Dataset, which can be accessed on Kaggle.com. The highest accuracy also presented satisfactory results with 98.094% accuracy, 90.514% Recall, and 97.754% NPV, respectively. The combination of LightGBM and PSO has resulted in better outcome. unipdu 2023 Article PeerReviewed text en http://eprints.uthm.edu.my/8937/1/J15898_e63681e26a66ff10c518c7ea4a580069.pdf Dasril, Yosza and Muslim, Much Aziz and Al Hakim, M. Faris and Jumanto, Jumanto and Prasetiyo, Budi (2023) Credit Risk Assessment in P2P Lending Using LightGBM and Particle Swarm Optimization. Jurnal Ilmiah Teknologi Sistem Informasi. pp. 18-28. ISSN 2502-3357 http://doi.org/10.26594/register.v9i1.3060
spellingShingle T Technology (General)
Dasril, Yosza
Muslim, Much Aziz
Al Hakim, M. Faris
Jumanto, Jumanto
Prasetiyo, Budi
Credit Risk Assessment in P2P Lending Using LightGBM and Particle Swarm Optimization
title Credit Risk Assessment in P2P Lending Using LightGBM and Particle Swarm Optimization
title_full Credit Risk Assessment in P2P Lending Using LightGBM and Particle Swarm Optimization
title_fullStr Credit Risk Assessment in P2P Lending Using LightGBM and Particle Swarm Optimization
title_full_unstemmed Credit Risk Assessment in P2P Lending Using LightGBM and Particle Swarm Optimization
title_short Credit Risk Assessment in P2P Lending Using LightGBM and Particle Swarm Optimization
title_sort credit risk assessment in p2p lending using lightgbm and particle swarm optimization
topic T Technology (General)
url http://eprints.uthm.edu.my/8937/
http://eprints.uthm.edu.my/8937/
http://eprints.uthm.edu.my/8937/1/J15898_e63681e26a66ff10c518c7ea4a580069.pdf