Application of AI and ML on Indian Banking Credit Rating System

Authors

  • Dr. Mainak Chakraborty, Sourav Kumar Das

Abstract

AI and ML are the driving force of the modern financial industry today. From customer data analysis to investor requirement analysis, they are everywhere. The BlockChain system allows the data to be gathered and analyzed in a very systematic way. The way FinTech is evolving is giving a new dimension of credit analysis of customers. How AI is transforming financial wellbeing as well as financial analysis can be analyzed throughout the analysis. There are various ways to analyze the impact of AI and ML in the credit rating system. The credit rating in its sense analyzes the creditworthiness of the customers. These ratings are available through different credit rating agencies across different platforms. The analysis involves the application of Random Forest algorithms and Logistic Regression Analysis. The study also compares the effectiveness of these two algorithms on credit analysis. The study collects the observations from the Indian Banking sector to analyze the credit rating system. From the analysis, it has been proved that Random Forest Algorithm proves to be the best solution than the Logistic Regression Analysis.

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Published

2022-02-25