AUTHOR=Bussmann Niklas , Giudici Paolo , Marinelli Dimitri , Papenbrock Jochen 

TITLE=Explainable AI in Fintech Risk Management

JOURNAL=Frontiers in Artificial Intelligence

VOLUME=3

YEAR=2020

URL=https://www.frontiersin.org/journals/artificial-intelligence/articles/10.3389/frai.2020.00026

DOI=10.3389/frai.2020.00026

ISSN=2624-8212

ABSTRACT=<p>The paper proposes an explainable AI model that can be used in fintech risk management and, in particular, in measuring the risks that arise when credit is borrowed employing peer to peer lending platforms. The model employs Shapley values, so that AI predictions are interpreted according to the underlying explanatory variables. The empirical analysis of 15,000 small and medium companies asking for peer to peer lending credit reveals that both risky and not risky borrowers can be grouped according to a set of similar financial characteristics, which can be employed to explain and understand their credit score and, therefore, to predict their future behavior.</p>