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April 23, 2026Information1 citationsOpen Access

Deep Learning for Credit Risk Prediction: A Survey of Methods, Applications, and Challenges

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IMIbomoiye Domor MienyeEEEbenezer EsenoghoCMCameron Modisane

Key Points

  • The aim is to evaluate the effectiveness of deep learning methods in predicting credit risk compared to traditional approaches.
  • Conducted a thorough review of deep learning architectures such as multi-layer perceptron, recurrent networks, and graph neural networks.
  • Analyzed benchmark and large-scale datasets used in credit risk modeling.
  • Identified key applications and challenges in the implementation of deep learning in credit risk prediction.
  • Deep learning models effectively capture complex relationships in borrower data, outperforming classical machine learning methods.
  • Applications span across corporate, consumer, and peer-to-peer lending sectors, demonstrating versatility.
  • Challenges include data privacy, model interpretability, and integration into existing financial frameworks.

Abstract

Credit risk prediction is central to financial stability and regulatory compliance, guiding lending decisions and portfolio risk management. While traditional approaches such as logistic regression and tree-based models have long been the industry standard, recent advances in deep learning (DL) have introduced architectures capable of capturing complex nonlinearities, temporal dynamics, and relational dependencies in borrower data. This study provides a comprehensive review of DL methods applied to credit risk prediction, covering multi-layer perceptron, recurrent and convolutional neural networks, transformer, and graph neural networks. We examine benchmark and large-scale datasets, highlight peer-reviewed applications across corporate, consumer, and peer-to-peer lending, and evaluate the benefits of DL relative to classical machine learning. In addition, we critically assess key challenges and identify emerging opportunities. By synthesising methods, applications, and open challenges, this paper offers a roadmap for advancing trustworthy deep learning in credit risk modelling and bridging the gap between academic research and industry deployment.

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Cite This Study

Mienye et al. (2026) studied this question.

synapsesocial.com/papers/69e9b80e85696592c86eb866https://doi.org/10.3390/info17040395
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