SVM Learning for Default Prediction of Credit Card under Differential Privacy

Currently, financial institutions utilize personal sensitive information extensively in machine learning. It results in significant privacy risks to customers. As an essential standard of privacy, differential privacy is often applied to machine learning in recent years. To establish a prediction model of credit card default under the premise of protecting personal privacy, we consider the problems of customer data contribution difference and data sample distribution imbalance, propose weighted SVM algorithm under differential privacy. Through theoretical analysis, we have ensured the security of differential privacy. The algorithm solves the problem of prediction result deviation caused by sample distribution imbalance and effectively reduces the data sensitivity and noise error. The experimental results show that the algorithm proposed in this paper can accurately predict whether a customer is default while protecting personal privacy.