Quantum Optimized Cost Based Feature Selection and Credit Scoring for Mobile Micro-financing

Mobile e-commerce has grown rapidly in the last decade because of the development of mobile network services, computing capabilities and big data's applications. Financial institutions have been undergoing fundamental transformation in credit risk areas, specifically to traditional credit policy, that is now inadequate for accurately evaluating an individual's credit risk profile in a timely manner. A big-scale dataset representing deep mobile usage of 450,722 anonymous mobile users with a 28-month loan history and mobile behavior of both iOS and Android is designed, can add value for credit scoring in terms of better accuracy and lower feature acquisition cost by introducing a cost-based quantum-inspired evolutionary algorithm (QIEA) feature selection method. The QIEA adopts quantum-based individual representation and quantum rotation gate operator to improve feature exploration capability of conventional genetic algorithm (GA). The expected feature yield fitness function introduced in QIEA able to identify cost-effective feature subsets. Experimental results show that quantum-based method achieves good predictive performances even with only 70-80% number of features selected by GAs, and hence achieve lower feature acquisition costs with budget constraints. Additionally, computational time can be reduced by 30-60% compared with GAs depending on different feature set sizes.