Machine learning based mobile airtime credit risk

prediction using customer profile and loan information

Abstract:
For telecommunications firms to successfully manage their financial risks and assure the
stability of their operations, predicting the credit risk associated with mobile airtime is a critical
challenge. The human analysis and historical data that are frequently used in traditional
techniques of credit risk assessment may not produce precise and timely predictions. The focus
of this literature is on the importance of machine learning-based credit risk prediction utilizing
customer profile and loan information as a viable remedy to deal with this problem.
The research emphasizes how crucial it is to improve credit risk prediction by using machine
learning algorithms that can efficiently assess client profiles and loan data. various methods can
help telecommunication firms identify high-risk clients early, reduce default rates, and improve
their credit management tactics by utilizing various data sources.
The scalability and adaptability of machine learning algorithms are also emphasized in the
literature. These algorithms have the ability to handle large volumes of customer data and loan
information, making them suitable for predicting credit risks in mobile airtime services. The
literature explores different machine learning techniques, such as decision trees, random
forests, and neural networks, to identify the most effective approach for credit risk prediction in
various contexts. By providing accurate and timely predictions about customer
creditworthiness, these systems can assist telecommunication companies in making informed
decisions regarding credit limits, payment plans, and collection strategies. this literature
emphasizes the significance of machine learning-based credit risk prediction in mobile airtime
services. It highlights its potential to enhance credit risk assessment, reduce costs, and support
decision-making process.
WRITTEN BY : Shashu Brhane Berhe

REVIEWED BY : BEREKET MELESE