Household loans: current challenges and development prospects

Abstract

The article examines the threats and challenges of household lending and their overcoming by updating strategic documents and introducing innovations in the consumer and mortgage lending market in order to increase the profitability of banks and ensure economic stability in the country. It is proven that the functioning of the household lending market is affected by a combination of risks, but the most significant threat is credit risks. The changes that have occurred in banking consumer and mortgage lending are studied. The materials of JSC "Sens-Bank" demonstrate the trends, challenges and prospects for the development of the consumer credit market. The need for banking institutions to introduce innovative tools and technologies into their lending activities is proven. It is emphasized that the expansion of partnership programs allows the bank to attract new categories of borrowers through cooperation with retail chains, car dealerships, medical centers, insurance companies and developers. The updated Strategy for the Development of Mortgage Lending is justified, aimed at the development of market mechanisms in this market segment in order to increase the availability of housing and provides for further digitalization of the lending process. The measures proposed in the article will contribute to the growth of bank profitability and economic stability in the country.