The Personal Credit Risk Scoring Based On Fuzzy Neural Network

With the rapid development of Chinese economy, the scale of personal credit business such as housing loans, car loans and credit cards has expanded continuously. Personal credit business has become an important business of commercial banks, which puts forward higher requirements on the personal credit scoring system. However, the development of personal credit activities has been restricted by the unsound credit mechanism and immature credit risk management in China which leaves a high risk to the commercial banks. Chinese scholars have suggested various index systems applied to personal credit scoring system and have evaluated the personal credit scoring system using various artificial intelligence models. To a certain extent, these have improved the accuracy of evaluation, but the accuracy and precision are still unable to meet the growing demand for personal credit business.In this essay, the author has done comprehensive analysis on the shoulder of scholars both in China and abroad. The essay is based on the current domestic and foreign research about personal credit scoring and fuzzy neural network, referred to data obtained from analysis and to the current index system. In this essay, the fuzzy neural network theory is applied to the individual credit risk scoring process. The type and the number of the function have done many empirical tests to get a personal credit scoring model with high accuracy and good precision. The purpose of this essay is to provide more reference model of the personal credit risk evaluation for commercial bank to help avoiding and reducing the possible risks of loss.