Modified Kohonen network algorithm for selection of the initial centres of Gustafson-Kessel algorithm in credit scoring
Credit risk assessment has become an important topic in financial risk administration. Fuzzy clustering analysis has been applied in credit scoring. Gustafson-Kessel (GK) algorithm has been utilised to cluster creditworthy customers as against non-creditworthy ones. A good clustering analysis implem...
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| Format: | Article |
| Language: | English |
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Universiti Putra Malaysia Press
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/51605/1/06%20JST%20Vol%2025%20%281%29%20Jan%20%202017_0591-2015_pg77-90.pdf |
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| author | Sameer, Fadhaa Othman Abu Bakar, Mohd Rizam |
| author_facet | Sameer, Fadhaa Othman Abu Bakar, Mohd Rizam |
| author_sort | Sameer, Fadhaa Othman |
| collection | UPM |
| description | Credit risk assessment has become an important topic in financial risk administration. Fuzzy clustering analysis has been applied in credit scoring. Gustafson-Kessel (GK) algorithm has been utilised to cluster creditworthy customers as against non-creditworthy ones. A good clustering analysis implemented by good Initial Centres of clusters should be selected. To overcome this problem of Gustafson-Kessel (GK) algorithm, we proposed a modified version of Kohonen Network (KN) algorithm to select the initial centres. Utilising similar degree between points to get similarity density, and then by means of maximum density points selecting; the modified Kohonen Network method generate clustering initial centres to get more reasonable clustering results. The comparative was conducted using three credit scoring datasets: Australian, German and Taiwan. Internal and external indexes of validity clustering are computed and the proposed method was found to have the best performance in these three data sets. |
| first_indexed | 2024-03-06T09:13:25Z |
| format | Article |
| id | upm.eprints-51605 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:13:25Z |
| publishDate | 2017 |
| publisher | Universiti Putra Malaysia Press |
| record_format | dspace |
| spelling | upm.eprints-516052017-03-30T10:39:14Z http://psasir.upm.edu.my/id/eprint/51605/ Modified Kohonen network algorithm for selection of the initial centres of Gustafson-Kessel algorithm in credit scoring Sameer, Fadhaa Othman Abu Bakar, Mohd Rizam Credit risk assessment has become an important topic in financial risk administration. Fuzzy clustering analysis has been applied in credit scoring. Gustafson-Kessel (GK) algorithm has been utilised to cluster creditworthy customers as against non-creditworthy ones. A good clustering analysis implemented by good Initial Centres of clusters should be selected. To overcome this problem of Gustafson-Kessel (GK) algorithm, we proposed a modified version of Kohonen Network (KN) algorithm to select the initial centres. Utilising similar degree between points to get similarity density, and then by means of maximum density points selecting; the modified Kohonen Network method generate clustering initial centres to get more reasonable clustering results. The comparative was conducted using three credit scoring datasets: Australian, German and Taiwan. Internal and external indexes of validity clustering are computed and the proposed method was found to have the best performance in these three data sets. Universiti Putra Malaysia Press 2017 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/51605/1/06%20JST%20Vol%2025%20%281%29%20Jan%20%202017_0591-2015_pg77-90.pdf Sameer, Fadhaa Othman and Abu Bakar, Mohd Rizam (2017) Modified Kohonen network algorithm for selection of the initial centres of Gustafson-Kessel algorithm in credit scoring. Pertanika Journal of Science & Technology, 25 (1). pp. 77-90. ISSN 0128-7680; ESSN: 2231-8526 http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JST%20Vol.%2025%20(1)%20Jan.%202017/06%20JST%20Vol%2025%20(1)%20Jan%20%202017_0591-2015_pg77-90.pdf |
| spellingShingle | Sameer, Fadhaa Othman Abu Bakar, Mohd Rizam Modified Kohonen network algorithm for selection of the initial centres of Gustafson-Kessel algorithm in credit scoring |
| title | Modified Kohonen network algorithm for selection of the initial centres of Gustafson-Kessel algorithm in credit scoring |
| title_full | Modified Kohonen network algorithm for selection of the initial centres of Gustafson-Kessel algorithm in credit scoring |
| title_fullStr | Modified Kohonen network algorithm for selection of the initial centres of Gustafson-Kessel algorithm in credit scoring |
| title_full_unstemmed | Modified Kohonen network algorithm for selection of the initial centres of Gustafson-Kessel algorithm in credit scoring |
| title_short | Modified Kohonen network algorithm for selection of the initial centres of Gustafson-Kessel algorithm in credit scoring |
| title_sort | modified kohonen network algorithm for selection of the initial centres of gustafson kessel algorithm in credit scoring |
| url | http://psasir.upm.edu.my/id/eprint/51605/1/06%20JST%20Vol%2025%20%281%29%20Jan%20%202017_0591-2015_pg77-90.pdf |
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