Improving the Efficiency of Credit Decisions Using Digitalization in Commercial Banks
Abstract
The incorporation of digital technologies within the banking sector has significantly revolutionized conventional risk management methodologies, particularly in the realm of project finance. This research investigates the influence of digitalization on the enhancement of risk assessment and management pertaining to project finance within commercial banks. Through the utilization of digital instruments such as data analytics, automated decision-making frameworks, and real-time risk surveillance, banks are more adept at identifying, evaluating, and mitigating risks associated with extensive financing initiatives. Concentrating on commercial banks in Uzbekistan, this article scrutinizes how digital transformation augments the precision of credit determinations and the efficacy of risk management procedures. The research underscores critical domains where digitalization has advanced risk analysis, encompassing predictive modeling, automated credit scoring, and early warning mechanisms for potential defaults. The results indicate that banks that embrace digital tools exhibit heightened transparency, expedited decision-making, and enhanced project success rates. Moreover, the research emphasizes the imperative for ongoing investment in digital technologies to refine risk management and guarantee sustainable project finance practices within the banking sector.