Introduction In this challenge, you'll get the opportunity to tackle one of the most industry-relevant machine learning problems with a unique dataset that will put your modeling skills to the test. Financial loan services are leveraged by companies across many industries, from big banks to financial institutions to government loans. One of the primary objectives of companies with financial loan services is to decrease payment defaults and ensure that individuals are paying back their loans as expected. In order to do this efficiently and systematically, many companies employ machine learning to predict which individuals are at the highest risk of defaulting on their loans, so that proper interventions can be effectively deployed to the right audience.
In this challenge, we will be tackling the loan default prediction problem on a very unique and interesting group of individuals who have taken financial loans.
Imagine that you are a new data scientist at a major financial institution and you are tasked with building a model that can predict which individuals will default on their loan payments. We have provided a dataset that is a sample of individuals who received loans in 2021.
This financial institution has a vested interest in understanding the likelihood of each individual to default on their loan payments so that resources can be allocated appropriately to support these borrowers. In this challenge, you will use your machine learning toolkit to do just that!