Implementing Machine Learning in the Credit Process of a Learning Organization While Maintaining Transparency Using LIME

Sammanfattning: To determine whether a credit limit for a corporate client should be changed, a financial institution writes a PM containingtext and financial data that then is assessed by a credit committee which decides whether to increase the limit or not. To make thisprocess more efficient, machine learning algorithms was used to classify the credit PMs instead of a committee. Since most machinelearning algorithms are black boxes, the LIME framework was used to find the most important features driving the classification. Theresults of this study show that credit memos can be classified with high accuracy and that LIME can be used to indicate which parts ofthe memo had the biggest impact. This implicates that the credit process could be improved by utilizing machine learning, whilemaintaining transparency. However, machine learning may disrupt learning processes within the organization.