SCORING SYSTEM FOR LOAN DECISION IN BANKING SYSTEM FOR SME

Abstract

The surrounding economic reality, the provision of loans, has made risk management a complex decision-making problem, increasingly making credit scoring issues an important tool for the development of all participants in this process. The analysis shows that the most significant impact on the financial result of the bank is the introduction of an improved credit scoring system, which is possible through the digitalization of customer interaction with a credit institution. The review covers ways to improve the banking credit scoring system. The paper examines research and peer review results. The solutions of both the traditional credit scoring approach and the advanced approach based on artificial intelligence and machine learning are studied.