# Unlocking the Black Box: A Five-Dimensional Framework for Evaluating Explainable AI in Credit Risk

arXiv: https://arxiv.org/abs/2511.04980 · HTML: https://mlsanity.com/paper/2511.04980/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 6 of its 28 references that are in the map.
- First posted on arXiv 7 Nov 2025.

## Builds on (most cited first, 6 of 6)

- [A Unified Approach to Interpreting Model Predictions](https://mlsanity.com/paper/1705.07874/) (2017)
- ["Why Should I Trust You?": Explaining the Predictions of Any Classifier](https://mlsanity.com/paper/1602.04938/) (2016)
- [Explanation in Artificial Intelligence: Insights from the Social Sciences](https://mlsanity.com/paper/1706.07269/) (2017)
- [Model-Agnostic Interpretability of Machine Learning](https://mlsanity.com/paper/1606.05386/) (2016)
- [Explainable AI in Credit Risk Management](https://mlsanity.com/paper/2103.00949/) (2021)
- [Explainable AI for Interpretable Credit Scoring](https://mlsanity.com/paper/2012.03749/) (2020)

## Abstract (arXiv)

The financial industry faces a significant challenge modeling and risk portfolios: balancing the predictability of advanced machine learning models, neural network models, and explainability required by regulatory entities (such as Office of the Comptroller of the Currency, Consumer Financial Protection Bureau). This paper intends to fill the gap in the application between these "black box" models and explainability frameworks, such as LIME and SHAP. Authors elaborate on the application of these frameworks on different models and demonstrates the more complex models with better prediction powers could be applied and reach the same level of the explainability, using SHAP and LIME. Beyond the comparison and discussion of performances, this paper proposes a novel five dimensional framework evaluating Inherent Interpretability, Global Explanations, Local Explanations, Consistency, and Complexity to offer a nuanced method for assessing and comparing model explainability beyond simple accuracy metrics. This research demonstrates the feasibility of employing sophisticated, high performing ML models in regulated financial environments by utilizing modern explainability techniques and provides a structured approach to evaluate the crucial trade offs between model performance and interpretability.