This project builds a loan-default prediction workflow around data cleaning, domain-driven features, imbalance handling, and a Streamlit interface. The modeling objective prioritizes identifying risky borrowers rather than optimizing headline accuracy on an imbalanced dataset.
Engineering ScopeML Engineer
Context / DeploymentIndependent applied ML project
Delivery Timeline2025
System ArchitectureApplied Machine Learning & FinTech
⚡THE ENGINEERING BOTTLENECK & SYSTEM CONSTRAINTS
When defaults are rare, a model can achieve strong accuracy while missing the cases that matter most. Credit-risk modeling also requires careful handling of data leakage, implausible records, correlated features, and the operational consequences of false negatives.
System Architecture[ TOPOLOGY & SUBSYSTEMS ]
- ✔
[STAGE 1]Treat the model as a decision-support tool and align evaluation with the cost of missed defaults.
- ✔
[STAGE 2]Address class imbalance using SMOTE-Tomek and threshold tuning rather than relying on accuracy alone.
- ✔
[STAGE 3]Use financial-domain features and WoE/IV analysis, with VIF checks to inspect multicollinearity.
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[STAGE 4]Deploy an interactive prediction interface in Streamlit for loan scenario inspection.
[ KEY ARCHITECTURAL DECISIONS & TRADE-OFFS ]
Overall Accuracy vs Default Recall
A lower decision threshold catches more defaults to reduce catastrophic financial loss, accepting trade-offs in false positives.
Feature Richness vs Leakage Risk
Derived features capture repayment behavior, but every feature must be strictly available at the time of lending approval.
Model Complexity vs Reviewability
Tree-based models improve nonlinear fit, while feature analysis and clear evaluation reporting help stakeholders inspect the result.
Verified Benchmarks[ PRODUCTION TELEMETRY ]
Imbalance Handling
SMOTE-Tomek & Tuning
● VERIFIED PRODUCTION THRESHOLD
Leakage Controls
Audited fee fields
● VERIFIED PRODUCTION THRESHOLD
Reported Score
Recall 0.96 · AUC 0.98
● VERIFIED PRODUCTION THRESHOLD
Production Milestones[ DELIVERED IMPACT ]
- ✦Delivers a documented modeling workflow and hosted interactive app for loan-default prediction.
- ✦Focuses evaluation on catching defaults and avoiding false-negative exposure.
Production Stack[ DEPENDENCIES & RUNTIME ]
#Python#pandas#scikit-learn#Logistic Regression#XGBoost#Optuna#SMOTE-Tomek#WoE / IV#Variance Inflation Factor#Streamlit