Predictive Analytics in Asset-Based Finance: Mitigating Credit Risk Using Data-Driven Insights
DOI:
https://doi.org/10.63282/3050-9262.IJAIDSML-V7I2P107Keywords:
Asset-Based Finance, Predictive Analytics, Credit Risk, ML/AI, Data-Driven Insights, Financial TechnologyAbstract
Asset-based finance (ABF) involves lending against collateral assets, exposing banks to credit risk. Predictive analytics using ML/AI models enables data-driven insights to anticipate defaults and optimize lending decisions. This paper presents a system architecture and predictive workflow for ABF, evaluates model performance using historical and simulated data, and demonstrates improved credit risk mitigation outcomes.
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