Deep Learning Enabled Financial Crisis Prediction Model for Small-Medium Sized Industries

Abstract

Recently, data science techniques utilize artificial intelligence (AI) techniques who start and run small and medium-sized enterprises (SMEs) to take an influence and grow their businesses. For SMEs, owing to the inexistence of consistent data and other features, evaluating credit risks is difficult and costly. On the other hand, it becomes necessary to design efficient models for predicting business failures or financial crises of SMEs. Various data classification approaches for financial crisis prediction (FCP) have been presented for predicting the financial status of the organization by the use of past data. A major process involved in the design of FCP is the choice of required features for enhanced classifier outcomes. With this motivation, this paper focuses on the design of an optimal deep learning-based financial crisis prediction (ODL-FCP) model for SMEs. The proposed ODL-FCP technique incorporates two phases: Archimedes optimization algorithm based feature selection (AOA-FS) algorithm and optimal deep convolution neural network with long short term memory (CNN-LSTM) based data classification. The ODL-FCP technique involves a sailfish optimization (SFO) algorithm for the hyperparameter optimization of the CNN-LSTM method. The performance validation of the ODL-FCP technique takes place using a benchmark financial dataset and the outcomes are inspected in terms of various metrics. The experimental results highlighted that the proposed ODL-FCP technique has outperformed the other techniques.

Hybrid Hunter–Prey Optimization with Deep Learning-Based Fintech for Predicting Financial Crises in the Economy and Society

“…Then, LSTM with RNN is applied for the classification of collected financial information. Muthukumaran and Hariharanath [12] consider the design of the optimum DL-based FCP (ODL-FCP) method for SMEs. The presented method integrates two stages: optimal deep CNN with LSTM (DCNN-LSTM)-based data classification and Archimedes optimization algorithm-based FS (AOA-FS) procedure.…”

The Effect of Financial Literacy, Financial Technology and Income on Small and Medium Entreprise Financial Behaviour

“…Meanwhile, technological developments have entered all sectors including the financial sector (Gao, 2022;Muthukumaran & Hariharanath, 2023). The financial technology concept, which is the use of information technology in the financial sector, aims to provide ease of financial services to users (Radicic & Petković, 2023).…”