Analysis of the development of the retail lending market in Russia

The article examines the issues of formation and development of retail lending in Russia from the early 2000s to the present. It delineates the stages of growth in the retail banking sector, identifying their distinctive characteristics. It has been established that, under modern conditions, retail lending serves as a driving force for the growth of purchasing demand, which in turn stimulates production processes and creates favorable conditions for overall economic development in the country. However, the persistence of issues related to over-indebtedness among the population and a high proportion of overdue debts among individuals has been identified, necessitating a reassessment of approaches to the issuance of loans to citizens. A set of measures is proposed to improve the process of lending to the population, based on the expansion of lending with due control over debts and credit risks: development of online lending to clients; development of new credit products that take into account the interests of potential borrowers; advanced training of bank employees engaged in lending to individuals and strengthening their motivation to better perform their duties; improvement of scoring models used in assessing potential borrowers; development of programs to retain bank clients.