Feature Ranking in Credit-Risk with Qudit-Based Networks

arXiv — cs.LGTuesday, November 25, 2025 at 5:00:00 AM
  • A new quantum neural network (QNN) has been developed for credit risk assessment, utilizing a single qudit to co-encode data features and parameters within a unified unitary evolution. This innovative approach allows for comprehensive exploration of the Hilbert space while maintaining interpretability through learned coefficients. The model was benchmarked on a real-world credit-risk dataset from Taiwan, demonstrating superior performance compared to traditional logistic regression and achieving results comparable to random forest models.
  • This advancement is significant for the financial sector, where accurate and interpretable predictive models are crucial for assessing credit risk. The QNN not only enhances predictive accuracy but also provides a transparent framework for understanding feature importance, which is essential for regulatory compliance and decision-making in lending practices.
  • The development of this QNN aligns with ongoing efforts in the AI field to improve model interpretability and performance, particularly in high-stakes areas like finance. As the industry grapples with the challenges of imbalanced datasets and the need for robust evaluation methods, this research contributes to a broader discourse on the importance of transparency in AI systems, echoing themes found in recent studies on model evaluation and dataset distillation.
— via World Pulse Now AI Editorial System

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