Development of consumer lending at the regional level and at the level of financial centers of Russia

Abstract

Abroad, consumer lending is one of the most powerful segments of the banking business. In Russia, the real applicants for bank credit are citizens with incomes over $ 500 per month. The potential of the lending market is several billion dollars a year, and the bank share, even at the minimum interest rate of 10-12% per annum in foreign currency is estimated at hundreds of millions of dollars. The development of consumer lending challenges banks to find the best balance between a number of contradictory requirements. Today, customers pay more attention to speed and convenience, especially when it comes to small amounts. However, there is a problem: the less time is given to checking the credit application, the higher is the probability that risky credits will increase. The credit scoring system, which is becoming the key element of the bank's decision-making system for lending to both private clients and small businesses, helps to solve this problem in the best way.