Development of a Bank Customers’ Credit Rating System Using Neural Networks Algorithms

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dc.contributor.authorAbdulsalam, S.O.
dc.contributor.authorYusuf, I.
dc.contributor.authorAwotunde, S.O.
dc.contributor.authorEdafeajiroke, M.F.
dc.date.accessioned2025-10-29T12:13:37Z
dc.date.available2025-10-29T12:13:37Z
dc.date.issued2025
dc.description.abstractCredit rating systems are vital for financial institutions to evaluate creditworthiness, manage risk, and minimize losses from defaults. Traditional methods, relying on historical financial data, lack adaptability and exclude borrowers with limited credit histories. Machine learning (ML) techniques, such as Backpropagation Neural Networks (BPNN) and Feedforward Propagation Neural Networks (FPNN), offer improved predictive accuracy. This study developed an advanced credit rating system using BPNN and FPNN, trained on Nigerian bank data incorporating financial and non-financial indicators. BPNN’s iterative weight-adjustment capability through backpropagation enhanced performance, while FPNN served as a simpler baseline. The methodology included data collection, preprocessing, model training, and evaluation using accuracy, precision, recall, and F1-score. Results demonstrated BPNN’s superiority, achieving 82.5% accuracy compared to FPNN’s 81.2%, alongside higher precision, recall, and F1 scores. The study underscores BPNN’s effectiveness in refining credit risk assessment, making it a more reliable tool for Nigerian banks. By leveraging ML, financial institutions can enhance decision-making, reduce risks, and expand credit access to underserved populations. Keywords: Credit Rating System, Back Propagation Neural Networks (BPNN), Feed-Forward Propagation Neural Network (FPNN), Development of Banks' Customers Credit Rating System, Machine Learning in Banking system
dc.identifier.urihttps://kwasuspace.kwasu.edu.ng/handle/123456789/6286
dc.language.isoen
dc.publisherFaculty of Science, Gombe State University, Nigeria - Bima Journal of Science and Technology, 9(1A), 233 – 244
dc.titleDevelopment of a Bank Customers’ Credit Rating System Using Neural Networks Algorithms
dc.typeArticle
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