FACTORS INFLUENCING DIGITIZATION OF CREDIT RISK MANAGEMENT IN THE MALAYSIAN FINANCIAL INDUSTRY

Asia Pacific Journal of Emerging Markets, Vol. 7, No. 1, 2023 ISSN: 2706-5634

Authors: Chuah ShangyangHafinaz Hasniyanti HassanAbid Ali

ABSTRACT

The digitization of bank operation processes has emerged as a popular topic of discussion among banks around the world because it will contribute significantly to the growth of the organization. This study aims to examine how customer expectations, regulatory expectations, data management, and advanced analytic s influence the digitization of credit risk management in Malaysia’s financial sector. Employed workers were the focus of this study due to a dilemma in the industry, where digitization was becoming firmly ingrained in banking strategic approach, with nearly all organizations and operations slated for digital innovations. However….

INTRODUCTION

Individuals nowadays are part of a technology-enabled population, and digital is already on everybody’s mind. According to Chen et al. (2014), over 40% of Asian mainstream-class clients choose online electronic financial services, while about 50% of those under 40 prefer digital banking. Today, digitization of credit risk management is critical to the banking industry’s long-term existence. Institutions are being forced to reconsider the costeffectiveness and long-term viability of existing risk-management models as well as practices due to external and internal constraints. Several of the challenges come from authorities, either from capital markets and competitive threats, as well as from the banks’ existing clients, either actively or passively…

Keywords:  Advanced AnalyticsData management , Credit risk , Digitization , Bank

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