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International Conference on Intelligent Systems Design and Applications

ISDA 2018 2018: Intelligent Systems Design and Applications pp 1–11Cite as

Differential Evolution Trained Fuzzy Cognitive Map: An Application to Modeling Efficiency in Banking

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Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 941))

Abstract

In this work, we developed a Differential Evolution (DE) trained Fuzzy Cognitive Map (FCM) for predicting the bank efficiency. We developed two modes of training namely (i) sequential and (ii) batch modes. We compared the DE trained FCM models with the conventional Hebbian training in both modes. We employed Mean Absolute Percentage Error (MAPE) as an error measure while predicting the efficiency from Return on Assets (ROA), Return on Equity (ROE), Profit Margin (PM), Utilization of Assets (UA), and Expenses Ratio (ER). We employed 5x2-fold cross-validation framework. In the first case i.e. sequential mode of training, the DE trained FCM statistically outperformed the Hebbian trained FCM and in the second case i.e. batch mode of training, DE trained FCM is statistically the same as the Hebbian trained FCM. To break the tie in the batch mode, the training time is compared where DE trained FCM turned to be 19% faster than the Hebbian trained FCM. The proposed model can be applied to solving similar banking and insurance problems.

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Author information

Authors and Affiliations

  1. School of Computer and Information Sciences, University of Hyderabad, Hyderabad, 500046, India

    Gutha Jaya Krishna

  2. Department of Electrical and Electronics Engineering, Birla Institute of Technology and Science Pilani, Hyderabad, 500078, India

    Meesala Smruthi

  3. Center of Excellence in Analytics, Institute for Development and Research in Banking Technology, Hyderabad, 500057, India

    Gutha Jaya Krishna & Vadlamani Ravi

  4. Institute for Development and Research in Banking Technology, Hyderabad, 500057, India

    Bhamidipati Shandilya

Authors
  1. Gutha Jaya Krishna
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  2. Meesala Smruthi
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  3. Vadlamani Ravi
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  4. Bhamidipati Shandilya
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Corresponding author

Correspondence to Vadlamani Ravi .

Editor information

Editors and Affiliations

  1. Machine Intelligence Research Labs, Auburn, WA, USA

    Ajith Abraham

  2. School of Information Technology and Engineering, Vellore Institute of Technology, Vellore, Tamil Nadu, India

    Aswani Kumar Cherukuri

  3. Tijuana Institute of Technology, Tijuana, Mexico

    Patricia Melin

  4. Machine Intelligence Research Labs, Auburn, WA, USA

    Niketa Gandhi

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Jaya Krishna, G., Smruthi, M., Ravi, V., Shandilya, B. (2020). Differential Evolution Trained Fuzzy Cognitive Map: An Application to Modeling Efficiency in Banking. In: Abraham, A., Cherukuri, A., Melin, P., Gandhi, N. (eds) Intelligent Systems Design and Applications. ISDA 2018 2018. Advances in Intelligent Systems and Computing, vol 941. Springer, Cham. https://doi.org/10.1007/978-3-030-16660-1_1

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