Beyond Traditional Models: Hyper-Tuned 3D BiLSTM Architectures for Enhanced Financial Risk Prediction
With the emergence of advanced techniques in the field of artificial intelligence, risk management in the financial sector has undergone significant transformation. This paper proposes a deep learning–based approach for risk modeling using Bidirectional Long Short-Term Memory (BiLSTM) networks, adapted for tabular data by excluding explicit temporal dependencies. The model is tailored to support accurate decision-making in financial risk assessment. One notable component of this study is the use of automated hyperparameter optimization (HPO) methods, which further enhance the model’s overall effectiveness. These tuning strategies yield models that are less complex, faster to train, and capable of adapting to dynamic data environments, making them suitable for integration into automated credit approval systems. The model was evaluated against baseline approaches, demonstrating improved predictive performance across key evaluation metrics, with statistical significance confirmed by McNemar’s test.