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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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Main Authors: Sameer, Fadhaa Othman, Abu Bakar, Mohd Rizam
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2017
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
http://psasir.upm.edu.my/id/eprint/51605/
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
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spelling my.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
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
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.
format Article
author Sameer, Fadhaa Othman
Abu Bakar, Mohd Rizam
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
author_facet Sameer, Fadhaa Othman
Abu Bakar, Mohd Rizam
author_sort Sameer, Fadhaa Othman
title 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_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_sort modified kohonen network algorithm for selection of the initial centres of gustafson-kessel algorithm in credit scoring
publisher Universiti Putra Malaysia Press
publishDate 2017
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
http://psasir.upm.edu.my/id/eprint/51605/
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
_version_ 1643835004715794432
score 13.211869

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