%A Giudici,Paolo %A Hadji-Misheva,Branka %A Spelta,Alessandro %D 2019 %J Frontiers in Artificial Intelligence %C %F %G English %K FinTech,Network analysis,credit scoring,Peer-to- peer learning,MST %Q %R 10.3389/frai.2019.00003 %W %L %M %P %7 %8 2019-May-24 %9 Original Research %# %! Network-based credit scoring %* %< %T Network Based Scoring Models to Improve Credit Risk Management in Peer to Peer Lending Platforms %U https://www.frontiersin.org/articles/10.3389/frai.2019.00003 %V 2 %0 JOURNAL ARTICLE %@ 2624-8212 %X Financial intermediation has changed extensively over the course of the last two decades. One of the most significant change has been the emergence of FinTech. In the context of credit services, fintech peer to peer lenders have introduced many opportunities, among which improved speed, better customer experience, and reduced costs. However, peer-to-peer lending platforms lead to higher risks, among which higher credit risk: not owned by the lenders, and systemic risks: due to the high interconnectedness among borrowers generated by the platform. This calls for new and more accurate credit risk models to protect consumers and preserve financial stability. In this paper we propose to enhance credit risk accuracy of peer-to-peer platforms by leveraging topological information embedded into similarity networks, derived from borrowers' financial information. Topological coefficients describing borrowers' importance and community structures are employed as additional explanatory variables, leading to an improved predictive performance of credit scoring models.