PPDNN-CRP: privacy-preserving deep neural network processing for credit risk prediction in cloud: a homomorphic encryption-based approach

Abstract

Abstract This study proposes a Privacy-Preserving Deep Neural Network for Credit Risk Prediction (PPDNN-CRP) framework that leverages homomorphic encryption (HE) to ensure data privacy throughout the credit risk prediction process. The PPDNN-CRP framework employs the Paillier homomorphic encryption scheme to secure sensitive loan application data during both the training and inference phases. Implemented using TensorFlow for deep neural network operations and TenSEAL for HE, the framework uses the Kaggle loan dataset to evaluate its performance. The results show that PPDNN-CRP achieved an accuracy of 80.48%, demonstrating competitive performance compared to Privacy-Preserving Logistic Regression (PPLR) at 77.23% and a slight decrease from the non-private DNN-CRP model at 86.18%. The model exhibited strong metrics with a precision of 0.84, recall of 0.91, F1-score of 0.87, and an AUC of 0.74. Security analysis confirms that PPDNN-CRP effectively defends against various privacy attacks, including poisoning, evasion, membership inference, model inversion, and model extraction, through robust encryption techniques and privacy measures. This framework offers a promising approach for achieving high-quality credit risk prediction while maintaining data privacy and complying with legal and ethical standards.

Keywords

• Credit risk prediction
• Deep neural network
• Homomorphic encryption
• Privacy preserving
• Bank loan prediction
• Cloud computing