Utilization of Data Mining to Predict Non-Performing Loan
Volume 5, Issue 4, Page No 252–256, 2020
Adv. Sci. Technol. Eng. Syst. J. 5(4), 252–256 (2020);
DOI: 10.25046/aj050431
Keywords: Data Mining, Non-Performing Loan, Machine Learning
In the banking industry, the existence of problem loans is inevitable. NPL (Non-Performing Loan) will certainly have an impact on the reduction in the capital of a bank. One good step in reducing the risk of credit default or the emergence of non-performing loans is to take proper care of debtors who begin to experience payment constraints. The main obstacle experienced in bank management, especially in the credit sector, is being unable to identify or detect potential debtors early due to a large amount of data and manual processing. In this study, the debtor payment history is presented as data to predict the existence of problem loans. History payment can be used to predict bad loans. The technic of data mining in this experiment is a new method. The results of research conducted using Naïve Bayes, Decision Tree, K-NN, Rule Induction, Logistic Regression, Random Forest, Generalized Linear Model, and Gradient Boosted Trees as a comparison then choose the method that has the highest accuracy to be implemented in making additional modules on the core banking system. Random Forest is the model that has the highest accuracy of 96.55%.
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- Md. Imdadul Hoque, Abul kalam Azad, Mohammad Abu Hurayra Tuhin, Zayed Us Salehin, "University Students Result Analysis and Prediction System by Decision Tree Algorithm", Advances in Science, Technology and Engineering Systems Journal, vol. 5, no. 3, pp. 115–122, 2020. doi: 10.25046/aj050315
- Gillala Rekha, Shaveta Malik, Amit Kumar Tyagi, Meghna Manoj Nair, "Intrusion Detection in Cyber Security: Role of Machine Learning and Data Mining in Cyber Security", Advances in Science, Technology and Engineering Systems Journal, vol. 5, no. 3, pp. 72–81, 2020. doi: 10.25046/aj050310
- Ahmed EL Orche, Mohamed Bahaj, "Approach to Combine an Ontology-Based on Payment System with Neural Network for Transaction Fraud Detection", Advances in Science, Technology and Engineering Systems Journal, vol. 5, no. 2, pp. 551–560, 2020. doi: 10.25046/aj050269
- Bokyoon Na, Geoffrey C Fox, "Object Classifications by Image Super-Resolution Preprocessing for Convolutional Neural Networks", Advances in Science, Technology and Engineering Systems Journal, vol. 5, no. 2, pp. 476–483, 2020. doi: 10.25046/aj050261
- Johannes Linden, Xutao Wang, Stefan Forsstrom, Tingting Zhang, "Productify News Article Classification Model with Sagemaker", Advances in Science, Technology and Engineering Systems Journal, vol. 5, no. 2, pp. 13–18, 2020. doi: 10.25046/aj050202
- Michael Wenceslaus Putong, Suharjito, "Classification Model of Contact Center Customers Emails Using Machine Learning", Advances in Science, Technology and Engineering Systems Journal, vol. 5, no. 1, pp. 174–182, 2020. doi: 10.25046/aj050123
- Rehan Ullah Khan, Ali Mustafa Qamar, Mohammed Hadwan, "Quranic Reciter Recognition: A Machine Learning Approach", Advances in Science, Technology and Engineering Systems Journal, vol. 4, no. 6, pp. 173–176, 2019. doi: 10.25046/aj040621
- Mehdi Guessous, Lahbib Zenkouar, "An ML-optimized dRRM Solution for IEEE 802.11 Enterprise Wlan Networks", Advances in Science, Technology and Engineering Systems Journal, vol. 4, no. 6, pp. 19–31, 2019. doi: 10.25046/aj040603
- Toshiyasu Kato, Yuki Terawaki, Yasushi Kodama, Teruhiko Unoki, Yasushi Kambayashi, "Estimating Academic results from Trainees’ Activities in Programming Exercises Using Four Types of Machine Learning", Advances in Science, Technology and Engineering Systems Journal, vol. 4, no. 5, pp. 321–326, 2019. doi: 10.25046/aj040541
- Ammar Al-Dallal, Amina Al-Moosa, "Prediction of Non-Communicable Diseases Using Class Comparison Data Mining", Advances in Science, Technology and Engineering Systems Journal, vol. 4, no. 5, pp. 193–206, 2019. doi: 10.25046/aj040525
- Nindhia Hutagaol, Suharjito, "Predictive Modelling of Student Dropout Using Ensemble Classifier Method in Higher Education", Advances in Science, Technology and Engineering Systems Journal, vol. 4, no. 4, pp. 206–211, 2019. doi: 10.25046/aj040425
- Fernando Hernández, Roberto Vega, Freddy Tapia, Derlin Morocho, Walter Fuertes, "Early Detection of Alzheimer’s Using Digital Image Processing Through Iridology, An Alternative Method", Advances in Science, Technology and Engineering Systems Journal, vol. 4, no. 3, pp. 126–137, 2019. doi: 10.25046/aj040317
- Abba Suganda Girsang, Andi Setiadi Manalu, Ko-Wei Huang, "Feature Selection for Musical Genre Classification Using a Genetic Algorithm", Advances in Science, Technology and Engineering Systems Journal, vol. 4, no. 2, pp. 162–169, 2019. doi: 10.25046/aj040221
- Konstantin Mironov, Ruslan Gayanov, Dmiriy Kurennov, "Observing and Forecasting the Trajectory of the Thrown Body with use of Genetic Programming", Advances in Science, Technology and Engineering Systems Journal, vol. 4, no. 1, pp. 248–257, 2019. doi: 10.25046/aj040124
- Bok Gyu Han, Hyeon Seok Yang, Ho Gyeong Lee, Young Shik Moon, "Low Contrast Image Enhancement Using Convolutional Neural Network with Simple Reflection Model", Advances in Science, Technology and Engineering Systems Journal, vol. 4, no. 1, pp. 159–164, 2019. doi: 10.25046/aj040115
- Nong Ye, Ting Yan Fok, Oswald Chong, "Modeling an Energy Consumption System with Partial-Value Data Associations", Advances in Science, Technology and Engineering Systems Journal, vol. 3, no. 6, pp. 372–379, 2018. doi: 10.25046/aj030645
- Zheng Xie, Chaitanya Gadepalli, Farideh Jalalinajafabadi, Barry M.G. Cheetham, Jarrod J. Homer, "Machine Learning Applied to GRBAS Voice Quality Assessment", Advances in Science, Technology and Engineering Systems Journal, vol. 3, no. 6, pp. 329–338, 2018. doi: 10.25046/aj030641
- Procheta Nag, Saikat Mondal, Arun More, "A Holistic User Centric Acute Myocardial Infarction Prediction System With Model Evaluation Using Data Mining Techniques", Advances in Science, Technology and Engineering Systems Journal, vol. 3, no. 6, pp. 56–66, 2018. doi: 10.25046/aj030605
- Richard Osei Agjei, Emmanuel Awuni Kolog, Daniel Dei, Juliet Yayra Tengey, "Emotional Impact of Suicide on Active Witnesses: Predicting with Machine Learning", Advances in Science, Technology and Engineering Systems Journal, vol. 3, no. 5, pp. 501–509, 2018. doi: 10.25046/aj030557
- Sudipta Saha, Aninda Saha, Zubayr Khalid, Pritam Paul, Shuvam Biswas, "A Machine Learning Framework Using Distinctive Feature Extraction for Hand Gesture Recognition", Advances in Science, Technology and Engineering Systems Journal, vol. 3, no. 5, pp. 72–81, 2018. doi: 10.25046/aj030510
- Charles Frank, Asmail Habach, Raed Seetan, Abdullah Wahbeh, "Predicting Smoking Status Using Machine Learning Algorithms and Statistical Analysis", Advances in Science, Technology and Engineering Systems Journal, vol. 3, no. 2, pp. 184–189, 2018. doi: 10.25046/aj030221