Publication Type
Journal Article
Version
publishedVersion
Publication Date
5-2024
Abstract
This study investigates the integration of quantum circuits with classical neural networks for enhancing credit scoring for small- and medium-sized enterprises (SMEs). We introduce a hybrid quantum–classical model, focusing on the synergy between quantum and classical rather than comparing the performance of separate quantum and classical models. Our model incorporates a quantum layer into a traditional neural network, achieving notable reductions in training time. We apply this innovative framework to a binary classification task with a proprietary real-world classical credit default dataset for SMEs in Singapore. The results indicate that our hybrid model achieves efficient training, requiring significantly fewer epochs (350) compared to its classical counterpart (3500) for a similar predictive accuracy. However, we observed a decrease in performance when expanding the model beyond 12 qubits or when adding additional quantum classifier blocks. This paper also considers practical challenges faced when deploying such models on quantum simulators and actual quantum computers. Overall, our quantum–classical hybrid model for credit scoring reveals its potential in industry, despite encountering certain scalability limitations and practical challenges.
Keywords
Quantum machine learning, Quantum classifiers, Quantum credit scoring, Quantum algorithms
Discipline
Databases and Information Systems | Finance and Financial Management | Theory and Algorithms
Research Areas
Information Systems and Management
Publication
Mathematics
Volume
12
Issue
9
First Page
1
Last Page
12
ISSN
2227-7390
Identifier
10.3390/math12091391
Publisher
MDPI
Embargo Period
7-26-2022
Citation
SCHETAKIS, Nikolaos; AGHAMALYAN, Davit; BOGUSLAVSKY, Micheael; REES, Agnieszka; RAKOTOMALALA, Marc; and GRIFFIN, Paul Robert.
Quantum machine learning for credit scoring. (2024). Mathematics. 12, (9), 1-12.
Available at: https://ink.library.smu.edu.sg/sis_research/7186
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Additional URL
https://doi.org/10.3390/math12091391
Included in
Databases and Information Systems Commons, Finance and Financial Management Commons, Theory and Algorithms Commons