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Academic Journal of Business & Management, 2023, 5(19); doi: 10.25236/AJBM.2023.051912.

A Financial Risk Control Method Based on XGBoost Algorithm

Author(s)

Zhaoxin Li1, Yinkai Niu2, Xinghan Chen3, Cheng Huang4

Corresponding Author:
Zhaoxin Li
Affiliation(s)

1Communication University of China, Beijing, China

2Kunming University of Science and Technology, Kunming, Yunnan, China

3TEDA NO. 2 Middle School, Tianjin, China

4Nanjing University of Posts and Telecommunications, Nanjing, Jiangsu, China

Abstract

For the past few years, with the continuous progress of technology, the rapid integration of traditional financial industry and the Internet has given rise to online financial businesses that deal with high-concurrency, large-scale, and multidimensional data. However, due to the high profitability and high risk of the financial industry, as well as the upgrading of fraudulent means, this transformation has also put higher requirements on financial risk control. Recently, advanced technologies represented by big data and artificial intelligence have provided new directions for improving risk control capabilities for commercial banks, with machine learning playing an increasingly important role. This paper aims to predict customer fraud behavior by conducting data analysis, data preprocessing, feature engineering , dataset partitioning, and using XGBoost and LightGBM algorithms in machine learning, in order to provide assistance in ensuring the stable operation of financial institutions and the security of customer assets.

Keywords

machine learning, digital finance, anti-fraud, ensemble learning, XGBoost

Cite This Paper

Zhaoxin Li, Yinkai Niu, Xinghan Chen, Cheng Huang. A Financial Risk Control Method Based on XGBoost Algorithm. Academic Journal of Business & Management (2023) Vol. 5, Issue 19: 77-84. https://doi.org/10.25236/AJBM.2023.051912.

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