A hybrid unsupervised machine learning model with spectral clustering and semi-supervised support vector machine for credit risk assessment

Tao Yu, Wei Huang, Xin Tang and Duosi Zheng

PLOS ONE, 2025, vol. 20, issue 1, 1-25

Abstract: In credit risk assessment, unsupervised classification techniques can be introduced to reduce human resource expenses and expedite decision-making. Despite the efficacy of unsupervised learning methods in handling unlabeled datasets, their performance remains limited owing to challenges such as imbalanced data, local optima, and parameter adjustment complexities. Thus, this paper introduces a novel hybrid unsupervised classification method, named the two-stage hybrid system with spectral clustering and semi-supervised support vector machine (TSC-SVM), which effectively addresses the unsupervised imbalance problem in credit risk assessment by targeting global optimal solutions. Furthermore, a multi-view combined unsupervised method is designed to thoroughly mine data and enhance the robustness of label predictions. This method mitigates discrepancies in prediction outcomes from three distinct perspectives. The effectiveness, efficiency, and robustness of the proposed TSC-SVM model are demonstrated through various real-world applications. The proposed algorithm is anticipated to expand the customer base for financial institutions while reducing economic losses.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0316557

DOI: 10.1371/journal.pone.0316557

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