Online Loan Default Prediction Model Based on Deep Learning Neural Network

Abstract

With the rapid development of Internet loans and the demand for Internet loans, Internet-based loan default prediction is particularly important. P2P online lending is based on Internet technology. With the popularization of personal PCs and mobile terminals, the borrower’s financing cost has been reduced to a large extent, and the efficiency of the borrower’s capital utilization has also been improved to a considerable level. Making full use of the existing data of the online lending platform, integrating third-party data, and predicting the default behavior of users are the major directions of future development. This paper mainly studies the network loan default prediction model based on DPNN. This paper first analyzes the problems and risks of the P2P online lending platform, then introduces the principle and characteristics of BPNN in detail, and determines the credit risk rating process for online lending based on BPNN. With the help of data analysis and processing software, after cleaning and variable selection of credit customer data provided by lending clubs, a set of corresponding online lending default risk assessment models are established through BPNN. This paper simulates the network loan default assessment model of the BPNN model and compares it with the support vector machine and regression model. The experimental results show that the highest accuracy rate of the BPNN model is 98.01% and the highest recall rate is 99.82%, which is better than the other two models; the AUC value of BPNN is 0.79, which is significantly higher than that of support vector machine and regression model. The above results show that the online loan default prediction model based on DPNN has high application value in practice. Predicting the probability of customer default risk in advance will help reduce the risk of P2P companies and lenders, improve the competitiveness of P2P lending institutions, and promote the development of domestic P2P platforms to be more stable.