A Fuzzy Inference System for Credit Scoring using Boolean Consistent Fuzzy Logic
Milica Latinovic
1
, Ivana Dragovic
2
, Vesna Bogojevic Arsic
3
, Bratislav Petrovic
4
1
Department of Financial Management and Accounting, University of Belgrade, Faculty of Organizational Sciences,
Jove Ilica 154
Belgrade, 11000, Serbia
latinovicm@fon.bg.ac.rs
2
Department of Systems Theory and Control, University of Belgrade, Faculty of Organizational Sciences,
Jove Ilica 154
Belgrade, 11000, Serbia
dragovic.ivana@fon.bg.ac.rs
3
Department of Financial Management and Accounting, University of Belgrade, Faculty of Organizational Sciences,
Jove Ilica 154
Belgrade, 11000, Serbia
bogojevic@fon.bg.ac.rs
4
Department of Systems Theory and Control, University of Belgrade, Faculty of Organizational Sciences,
Jove Ilica 154
Belgrade, 11000, Serbia
petrovic.bratislav@fon.bg.ac.rs
Abstract
This study proposes implementation of Boolean consistent fuzzy inference system for credit scoring purposes.
Fuzzy inference system (FIS) allows domain experts to express their knowledge in the form of fuzzy rules, which
enables combination of automatic rating with human judgment. Crucial for this model is that fuzzy rules are being
evaluated using Boolean consistent fuzzy logic, which preserves all Boolean axioms. Experimental results show
that the Boolean consistent FIS outperforms the conventional FIS in terms of classification accuracy, precision, and
recall. Consistent fuzzy logic could contribute to the rightful approval of more loans which in turn would have
positive effects on economic growth.
Keywords: Fuzzy Inference System; Boolean Consistent Fuzzy Logic; Banks; Credit Scoring; Performance.
1. Introduction
Micro, small, and medium enterprises (MSME) in
developed and emerging economies represent an
important sector, which needs to be vigorous in order to
be able to generate economic development. This sector
is essential for creating employment, increasing
international trade, and establishing an entrepreneurship
spirit. However, the banking sector is hesitant to lend to
International Journal of Computational Intelligence Systems, Vol. 11 (2018) 414–427
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414
Received 19 September 2017
Accepted 1 December 2017
Copyright © 2018, the Authors. Published by Atlantis Press.
This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).