Consumer banking lending: trends and development

Consumer lending contributes to maintaining demand in the market of goods and services, and the ability to replenish their own funds through credit allows individuals to improve the quality of life. The main lenders on the market are banks, which bear credit risks. The state of the modern consumer lending market characterizes the growth in the volume of loans to individuals, which is accompanied by an outstripping growth in overdue debt. This trend is confirmed by the analysis of loan portfolios of a number of large Russian banks. To change the situation, the regulator introduces macroprudential limits for banks with a universal license in the first quarter of 2023, which may lead to the loss of some potential borrowers, and with them interest income. To avoid the development of such a scenario, banks need to expand the use of digital technologies that allow them to create and process a large array of information field data, form a portrait of the client, predict future needs, create new credit products and develop individual conditions for them, actively promote new products in the digital environment. To do this, banks need their own strategy and plans for the development of the digital banking business model and the training of specialists in mastering competencies that allow them to work on the new platform. Special attention should be paid to the formation of competencies that allow creating and maintaining positive communications with subjects of different social groups and positions - partners, customers, competitors. Banks with a basic license by the regulator are not covered by the limitation rules. According to the author, they need to introduce intrabank norms to limit the maximum debt burden and take them into account when considering a loan application. This will help to avoid over-crediting of the population, which will have a positive effect on reducing credit risk and reducing the level of overdue debt in the consumer banking lending market.