A Relational Graph Convolution Network-Based Smart Risk Recognition Model for Financial Transactions

Abstract

The financial transaction relationships between existing entities are complex and diverse. In this situation, traditional risk control methods mainly ignored such complex and implicit relationship characteristics, remaining difficult to cope with complex and ever-changing financial risks. To address this issue, this paper proposes a novel relational graph convolution network (GCN)-based smart risk recognition model for financial transactions. Firstly, the classic GCN is simplified based on spatiotemporal effect. Then, feature extraction is conducted for financial transaction data, and a transformer encoder-based GCN model is proposed for risk recognition. The proposed model in this work is named as graph transformer graph convolutional network (GT-GCN) for short. In addition, fuzzy evaluation method is added into it. Finally, some experiments are conducted on real-world financial transaction data to make validation for the proposed GT-GCN. The research results indicate that the GT-GCN can not only effectively identify risks in financial transactions, but also has high accuracy and predictive ability. The application of GT-GCN to actual datasets also has good scalability and adaptability, and it can be resiliently extended into many other fields.