AN OPTIMUM CREDIT LENDING DECISION

Nowadays, the concept of Trust can be found in a number of different fields including sociology, business and computing. Trust is playing an important role in the e-business and virtual environment. Exchanging goods and services across an interactive digital network, forces the companies to build their transactions based on the level of trust of their customers. One of the recent services which are widely provided by internet is credit score computation. Till now, almost all of the studies in this field are trying to improve the accuracy rate of the proposed algorithms and this is the first times that trust concept is used in credit scoring domain. In this paper, a trust- based approach for credit scoring is proposed which lets the financial institutions granting their credit, based on the level of trust of the customers. The mathematical formulas are proposed to link the credit scoring domain and trust concept. At the classification stage, an Artificial Neural Network (ANN) - based model is used. To show the applicability and superiority of the proposed algorithm, it is performed on a credit card dataset obtained from UCI repository.

Trust; Business Intelligence; Credit Scoring; Artificial Neural Network