A Federated Learning Approach to Banking Loan Decisions

Farag Azzedin, Mustafa Ghaleb, Yasser El-Alfy, Raed Katib, M. D. Hossain

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Machine Learning (ML) techniques for decision-making have become a topic of popular interest for many organizations. Such models, however, depend on data availability which is not always possible. Banks, for example, often have limited data about their customers. While this data could be supplemented with information from other banks, data sharing leads to privacy concerns due to regulations such as the General Data Protection Regulation (GDPR) and the California Customer Privacy Act (CCPA). An alternative method proposed to solve such a problem is Federated Learning (FL), where the data is not shared, but the models created by each entity are shared to keep privacy. FL has been applied across various sectors and industries, but not all. In this paper, we implement an FL algorithm in a new sector, namely, banking and loans. We used an architecture where multiple banks within the same country, each possessing different customer information, want to evaluate eligibility for loan provision. Our objective is to design an FL model where the banks share the data without exposing any customer hidden information. We implemented our FL model using Flower on the publicly available Loan dataset on Kaggle. Our model achieved an accuracy of 81%.

Original languageEnglish
Title of host publication2023 International Symposium on Networks, Computers and Communications, ISNCC 2023
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9798350335590
DOIs
StatePublished - 2023
Event2023 International Symposium on Networks, Computers and Communications, ISNCC 2023 - Doha, Qatar
Duration: 23 Oct 202326 Oct 2023

Publication series

Name2023 International Symposium on Networks, Computers and Communications, ISNCC 2023

Conference

Conference2023 International Symposium on Networks, Computers and Communications, ISNCC 2023
Country/TerritoryQatar
CityDoha
Period23/10/2326/10/23

Bibliographical note

Publisher Copyright:
© 2023 IEEE.

Keywords

  • Banking Loan
  • Federated Learning
  • Privacy
  • Risk Assessment

ASJC Scopus subject areas

  • Artificial Intelligence
  • Computer Networks and Communications
  • Computer Science Applications
  • Computer Vision and Pattern Recognition
  • Information Systems and Management
  • Safety, Risk, Reliability and Quality

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