Shinhan Bank announced on the 9th that the paper of’A Study on Credit Rating Model Using Explainable AI Technology’ by AICC (Integrated AI Center) in the Digital Innovation Group has been approved for publication by the Korean Journal of Data Information Science (KCI’s excellent journal).
AI technology is so difficult to understand and explain the process to the extent that it compares the process of obtaining results to a’black box’. Shinhan Bank’s AICC conducted this study based on the judgment that applying AI to the financial industry requires not only high precision but also the ability to explain the results.
In this paper, AICC of Shinhan Bank proposed an algorithm that can explain the effect of each item of credit rating on the result value, as well as the AI-based credit rating algorithm, and the reason for fluctuations in the result value derived by AI.
Through this study, the impact of individual items, such as salary level and debt amount, on the outcome of the customer’s credit rating components in AI credit evaluation, is explained to the customer, and the credit rating rises under the influence of certain items even when the customer’s credit rating changes. Or, it was able to intuitively explain whether it fell.
In addition, Shinhan Bank AICC conducted a study to improve the explanatory power of financial AI models with Korea University’s pattern recognition and machine learning labs.
As a result, AI analyzes credit evaluation items such as salary, delinquency count, utility bill arrears, installment transaction ratio, etc. for customers who refused loans. If the loan is possible,” he was able to propose an alternative.
A Shinhan Bank official said, “This study is of great significance in that it has confirmed that it can provide explanatory power when introducing AI to financial services.” “Through continuous XAI (Explainable AI) research, customer-oriented innovative digital services I will show you.”
On the other hand, Shinhan Bank is leading the digital innovation of finance by creating the Digital Innovation Group and AICC under the direct control of the bank president, and Bank Chairman Jin Ok-dong is the digital guardian of the AI field of Shinhan Financial Group, taking the role of the AI control tower within the group. [프레스맨]