A Hybrid Credit Scoring Model Using Neural Networks and Logistic Regression

  • Lkhagvadorj Munkhdalai
  • Jong Yun Lee
  • Keun Ho RyuEmail author
Conference paper
Part of the Smart Innovation, Systems and Technologies book series (SIST, volume 156)


Credit scoring is one of important issues in banking to control a loss due to debtors who fail to meet their credit payment. Hence, the banks aim to develop their credit scoring model for accurately detecting their bad borrowers. In this study, we propose a hybrid credit scoring model using deep neural networks and logistic regression to improve its predictive accuracy. Our proposed hybrid credit scoring model consists of two phases. In the first phase, we train several neural network models and in the second phase, those models are merged by logistic regression. In experimental part, our model outperformed baseline models on over three benchmark datasets in terms of H-measure, area under the curve (AUC) and accuracy.


Deep learning Logistic regression Credit scoring 



This research was supported by the Private Intelligence Information Service Expansion (No. C0511-18-1001) funded by the NIPA (National IT Industry Promotion Agency) and by Basic Science Research Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Science, ICT & Future Planning (No.2017R1A2B4010826).


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Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Database/Bioinformatics Laboratory, School of Electrical and Computer EngineeringChungbuk National UniversityCheongjuRepublic of Korea
  2. 2.Department of Computer ScienceChungbuk National UniversityCheongjuRepublic of Korea
  3. 3.Faculty of Information TechnologyTon Duc Thang UniversityHo Chi Minh CityVietnam

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