2025/11/24 by Maragkopoulos, Georgios, Chavatzoglou, Lazaros, Mandilara, Aikaterini +1
Business, Management and Accounting · Computer Science · Economics, Econometrics and Finance · #Credit Risk and Financial Regulations #FOS: Computer and information sciences #FOS: Physical sciences #Financial Distress and Bankruptcy Prediction #Imbalanced Data Classification Techniques #Machine Learning (cs.LG) #Quantum Physics (quant-ph)
paper · doi:10.48550/arxiv.2511.19150
openalex publication_date 2025/11/24 · openalex created_date 2025/11/27 · openalex updated_date 2026/07/28
In finance, predictive models must balance accuracy and interpretability, particularly in credit risk assessment, where model decisions carry material consequences. We present a quantum neural network (QNN) based on a single qudit, in which both data features and trainable parameters are co-encoded within a unified unitary evolution generated by the full Lie algebra. This design explores the entire Hilbert space while enabling interpretability through the magnitudes of the learned coefficients. We benchmark our model on a real-world, imbalanced credit-risk dataset from Taiwan. The proposed QNN consistently outperforms LR and reaches the results of random forest models in macro-F1 score while preserving a transparent correspondence between learned parameters and input feature importance. To quantify the interpretability of the proposed model, we introduce two complementary metrics: (i) the edit distance between the model's feature ranking and that of LR, and (ii) a feature-poisoning test where selected features are replaced with noise. Results indicate that the proposed quantum model achieves competitive performance while offering a tractable path toward interpretable quantum learning.