# Beyond the Pre-Service Horizon: Infusing In-Service Behavior for Improved Financial Risk Forecasting

arXiv: https://arxiv.org/abs/2509.06385 · HTML: https://mlsanity.com/paper/2509.06385/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in General knowledge distillation methods, one of 12 directions in Knowledge distillation.
- Builds on 9 of its 42 references that are in the map.
- First posted on arXiv 8 Sep 2025.

## Placed in

- Knowledge distillation / [General knowledge distillation methods](https://mlsanity.com/distill/general-knowledge-distillation-methods/)

## Builds on (most cited first, 9 of 9)

- [Semi-Supervised Classification with Graph Convolutional Networks](https://mlsanity.com/paper/1609.02907/) (2016)
- [Graph Attention Networks](https://mlsanity.com/paper/1710.10903/) (2017)
- [Inductive Representation Learning on Large Graphs](https://mlsanity.com/paper/1706.02216/) (2017)
- [XGBoost: A Scalable Tree Boosting System](https://mlsanity.com/paper/1603.02754/) (2016)
- [A Semi-supervised Graph Attentive Network for Financial Fraud Detection](https://mlsanity.com/paper/2003.01171/) (2020)
- [Heterogeneous Graph Neural Networks for Malicious Account Detection](https://mlsanity.com/paper/2002.12307/) (2020)
- [Reliable Representations Make A Stronger Defender: Unsupervised Structure Refinement for Robust GNN](https://mlsanity.com/paper/2207.00012/) (2022)
- [The Devil is in the Conflict: Disentangled Information Graph Neural Networks for Fraud Detection](https://mlsanity.com/paper/2210.12384/) (2022)
- [Financial Default Prediction via Motif-preserving Graph Neural Network with Curriculum Learning](https://mlsanity.com/paper/2403.06482/) (2024)

## Abstract (arXiv)

Typical financial risk management involves distinct phases for pre-service risk assessment and in-service default detection, often modeled separately. This paper proposes a novel framework, Multi-Granularity Knowledge Distillation (abbreviated as MGKD), aimed at improving pre-service risk prediction through the integration of in-service user behavior data. MGKD follows the idea of knowledge distillation, where the teacher model, trained on historical in-service data, guides the student model, which is trained on pre-service data. By using soft labels derived from in-service data, the teacher model helps the student model improve its risk prediction prior to service activation. Meanwhile, a multi-granularity distillation strategy is introduced, including coarse-grained, fine-grained, and self-distillation, to align the representations and predictions of the teacher and student models. This approach not only reinforces the representation of default cases but also enables the transfer of key behavioral patterns associated with defaulters from the teacher to the student model, thereby improving the overall performance of pre-service risk assessment. Moreover, we adopt a re-weighting strategy to mitigate the model's bias towards the minority class. Experimental results on large-scale real-world datasets from Tencent Mobile Payment demonstrate the effectiveness of our proposed approach in both offline and online scenarios.