Empowering Credit Scoring Systems with Quantum-Enhanced Machine Learning

Javier Mancilla, Andr\'e Sequeira, Tomas Tagliani, Francisco Llaneza and Claudio Beiza

Abstract: Quantum Kernels are projected to provide early-stage usefulness for quantum machine learning. However, highly sophisticated classical models are hard to surpass without losing interpretability, particularly when vast datasets can be exploited. Nonetheless, classical models struggle once data is scarce and skewed. Quantum feature spaces are projected to find better links between data features and the target class to be predicted even in such challenging scenarios and most importantly, enhanced generalization capabilities. In this work, we propose a novel approach called Systemic Quantum Score (SQS) and provide preliminary results indicating potential advantage over purely classical models in a production grade use case for the Finance sector. SQS shows in our specific study an increased capacity to extract patterns out of fewer data points as well as improved performance over data-hungry algorithms such as XGBoost, providing advantage in a competitive market as it is the FinTech and Neobank regime.

Date: 2024-03, Revised 2024-04
New Economics Papers: this item is included in nep-ban, nep-big and nep-cmp
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