Under the influence of COVID-19, minor enterprises, especially the manufacturing industry, are facing greater financial pressure and the possibility of non-performing loans is increasing. It is very important for financial institutions to reduce financial risks while providing financial support for minor enterprises to promote industrial development and economic recovery. In order to understand the function of machine learning algorithms in predicting enterprise credit risk, the research designs five models, including Logistic Regression, Decision Tree, Naïve Bayesian, Support Vector Machine and Deep Neural Network, and adopts SMOTE and Undersampling to process imbalanced data. Experiments show that machine learning algorithms have high accuracy for both large-scale data and small-scale data.
Consumer credit-risk models via machine-learning algorithms
