KiRTi: A Blockchain-Based Credit Recommender System for Financial Institutions

【Author】 Patel, Shivani Bharatbhai; Bhattacharya, Pronaya; Tanwar, Sudeep; Kumar, Neeraj

【Source】IEEE TRANSACTIONS ON NETWORK SCIENCE AND ENGINEERING

【影响因子】5.033

【Abstract】In this paper, we propose KiRTi, a deep-learningbased credit-recommender scheme for public blockchain to facilitate smart lending operations between prospective borrowers (PB) and prospective lenders (PL) to eliminate the need of third party credit-rating agencies (CRAs) for credit-score (CS) generation. Thus loan grants to PB from PL is secured, authorized, and automated so as to expedite the disbursement process. KiRTi stores PB historical transactions, current assets, and liabilities as time-series sequenced data in a public blockchain. The sequenced data is fetched from blockchain by a long-short term memory (LSTM) model that generates CS for loan recommendations based on proposed lending algorithms for PB and PL. To ensure real-time updation of CS, edge-weights are updated based on boolean indicators from PB and PL, which indicates the successful repayments and loan-defaults. The process is iterated to improve the accuracy of edge-weights and generated CS to ensures the correct credibility of PB for future lending. Smart contracts (SC) are proposed for automatic setup of loan repayments between PB and PL. To model the LSTM recommender scheme, a German credit dataset from UCI repository is considered with 1000 credit- histories of PB, with 700 successful repayments and 300 defaults. KiRTi achieves an accuracy of 97.5% in comparison to conventional approaches with an F-measure of 0.98304. The security evaluation of KiRTi shows that it has computation cost of 20.96 ms and communication cost of 121 bytes compared to other state-of-theart approaches.

【Keywords】Blockchain; credit-rating; financial institutions; deep learning; LSTM recommender

【发表时间】2021 APR-JUN

【收录时间】2022-01-02

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