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arXiv:2608. 08126v1 Announce Type: new Abstract: Credit scoring increasingly relies on models whose decision logic cannot be read off their parameters, in tension with supervisory expectations that adverse decisions be explainable.
arXiv:2505. 24622v3 Announce Type: replace Abstract: Many high-stakes screening tasks require predicting rare outcomes from unstructured text, where errors are costly and decisions must be auditable.
The paper investigates the "score granularity gap" in black-box large language model (LLM) classifiers, asking how finely a confidence score can be thresholded for deployment. By comparing seven confidence construction methods across 25 model-dataset pairs, the authors find that single-shot verbalized confidence, when properly converted to a probability, ranks well but offers only a few distinct threshold values, limiting operational flexibility. The study also shows that multi-query aggregation can improve weak models but may harm strong ones, and provides concrete guidance for deployment trade-offs.
arXiv:2605. 18147v2 Announce Type: replace Abstract: Predictive models play a pivotal role in credit risk management, guiding critical decisions through accurate estimation of default probabilities and losses.
The paper presents a framework for integrating explainable AI into customer churn prediction for telecommunications. It benchmarks four classifiers—Logistic Regression, Random Forest, XGBoost, and LightGBM—on the IBM Telco Customer Churn dataset, finding comparable performance with Logistic Regression achieving the highest AUC-ROC and LightGBM the highest accuracy. Explanations are provided via SHAP and LIME at both global and instance levels, and a four‑layer CRM integration architecture is proposed to translate risk scores and attribution vectors into actionable retention strategies, projecting a 3.3–5.3 percentage point reduction in churn and $199K–$319K savings per campaign cycle.
arXiv:2608.20343v1 Announce Type: new Abstract: This study develops and evaluates a bankruptcy prediction framework that integrates consensus-based feature selection, hybrid resampling, stacking ense...