International Journal of Intelligent Information Systems
Volume 2, Issue 2, April 2013, Pages: 34-39
Received: Apr. 24, 2013;
Published: May 30, 2013
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Z. Kirori, School of Pure & Applied Sciences, Karatina University, Karatina, Kenya
J. Ogutu, School of Computing & Informatics, University of Nairobi, Nairobi, Kenya
Mitigation of credit risk is a key aspect of portfolio management in any financial institution. This is primarily due to difficulties in uncovering uncertainties in information provided by credit applicants and also due to lack of reliable automated techniques that would improve the efficiency of manual underwriting procedures. In this paper, we report on the results of a MSc. Thesis1 in the application of an ensemble learning algorithm in development of a computer program that can greatly enhance the underwriting process. The implementation was based on the java netbeans development platform to create an interface that was used to train a model and its subsequent use in predicting credit decisions. The results obtained proved that such a mechanism can be applied to augment manual credit appraising processes, especially where large volumes of applications are to be processed within limited timeframes.
An Application of the Logitboost Ensemble Algorithm in Loan Appraisals, International Journal of Intelligent Information Systems.
Vol. 2, No. 2,
2013, pp. 34-39.
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