Artificial Intelligence in Finance Sector for Risk Prediction

The Finance industry is under constant development, always using and adapting to new technological opportunities like Artificial Intelligence (AI) and Data Analytics. AI has significantly impacted the financial industry by enhancing risk assessment, management, and decision-making. It can efficiently process vast amounts of data and identify patterns quickly. This paper presents an AI model in finance sector for risk management, especially loan default prediction. Using a dataset with accessible data, such as accounting ratios, education level, age, income, credit score, etc. to assess the probability of loan default. The proposed model plays a pivotal role in these efforts by analyzing a multitude of scenarios, like credit card applications, or processing extensive datasets, and proposing potential actions, such as approving or denying credit card applications or loans.