Credit vs. Risk: Topical Issues of Credit Risk Management
12 June 2019
Retail consumer lending is the most promising segment of the market, given the low current level of crediting of the population, the steady growth of income and consumer demand. Good dynamics and great potential are actualizing the topic of possible growth of credit risks and timely prevention of them. About the current trends, innovations and best practices in retail lending and SME risk management was held at the XIV Conference "Credit Risk 2019", an annual event gathering leading bankers, risk managers, sociologists, regulators for professional analysis and constructive discussion of key trends. risk management, its further development paths, new challenges and prospects.
Oleg Pakhomov, one of the Forum's speakers, the Deputy Chairman of the Board - the director of retail business of Bank Credit Dnepr, offered to discuss the topic "Difficulties and challenges in building a credit factory". By presenting his presentation in the "problem-advice" format, the expert pointed out the key difficulties that arise in the way of the credit conveyor, which should work efficiently, and shared recommendations for their solution. In particular, the issues of lack of qualified personnel and high competition from it by financial companies, the construction of a proper risk model based on the model of a compressed spring at the start of the spring, which is gradually unfastened, the interaction of business and risks in the format of interconnected vessels, the correct motivation of sellers and diversification of channels sales, courage in defending their positions in dialogue with the regulator, which causes significant and not always justifiable risks in lending.
"Creation of financial institutions of credit factories can be compared to the preparation of borsch: the ingredients are similar, the recipe is simple and well-known for a long time, and the taste of each hostess is different. Our recipe for delicious credit "borscht" is a fresh product, sliced through the right channels, flavored with juicy IT, scorching, anti-freeze, checking refills, regulatory bow and delicious marketing seasoning. It is important not to overdo it with risky peppers, serve well and test before serving. If everything is done correctly, the client will definitely return to the addendum, "Oleg Pakhomov emphasized.
The speaker also noted that credit products, with all their attractive marginality, should not be the sole object of the sale of a loan factory. You need to learn to successfully sell and non-bank products, because it is in the universalisation of the way to success.
For more information on retail credit offers of Bank Dnipro Credit you can see the link.