The role of innovative financial technologies in reducing problematic bank debt

The growth of problematic bank debt and non-performing loans (NPLs) remains an important challenge for the stability, profitability, and lending capacity of commercial banks. Traditional approaches to credit-risk management, which primarily rely on historical financial information, collateral, credit history, and periodic borrower assessments, may be insufficient for identifying rapidly changing credit risks in a digital financial environment. Innovative financial technologies, including artificial intelligence, machine learning, big-data analytics, automated credit scoring, predictive analytics, digital early-warning systems, open banking, and automated debt-management platforms, create new opportunities for improving the prevention and management of problematic bank debt. The purpose of this study is to examine the role of innovative financial technologies in reducing problematic bank debt and to develop an integrated technology-based framework for credit-risk management. The research applies analytical, comparative, systemic, and conceptual modelling methods to examine the relationship between financial technologies, borrower-risk assessment, early-warning mechanisms, intervention, restructuring, and debt recovery.

Hali tarjima qilinmagan