Improving the management of microfinance institutions by using credit scoring models based on Statistical Learning techniques
Statistical Learning methods outperform logistic regression and linear and quadratic discriminant analysis. Credit scoring models based on supervised classification algorithms increase the efficiency of microfinance institutions. With the implementation of a MLP-based model, the MFI? misclassification costs are reduced to 13.7%. A freely available software, the R system, can be used to fit these models.
microfinance institutions credit scoring statistical learning efficiency decision support systems data mining