FORMATION OF STRATEGIES FOR THE BANK’S CREDIT PORTFOLIO MANAGEMENT IN THE CONTEXT OF THE FINANCIAL AND CREDIT ENVIRONMENT TRANSFORMATIONS

Abstract

This article presents a comprehensive study of innovative strategies for managing a bank’s credit portfolio in the context of the transformation of Ukraine’s financial and credit environment. Considering the high level of macroeconomic turbulence, institutional changes, the impact of martial law, inflationary processes, and shifts in consumer behavior, the author substantiates the urgency of modernizing traditional credit management models. Particular attention is paid to the transition from classical scoring methods to innovative approaches based on digital transformation, artificial intelligence, and big data analytics.
The study examines six key directions of innovative modernization in credit portfolio management: digital transformation using AI/ML algorithms (Random Forest, XGBoost, Decision Trees) for objective analysis of borrowers’ creditworthiness; implementation of scenario modeling and stress testing to forecast risks under various macroeconomic conditions; segmentation of the credit portfolio by profitability and risk profile, allowing banks to optimize credit policies; strategic partnerships with fintech companies that accelerate the digitalization of credit processes without significant internal resource costs; enhancement of managerial digital literacy through training programs, promoting the adoption of new management approaches; and the formation of an ethical system for using artificial intelligence in lending.
Based on constructed graphs and comparative analysis, the paper illustrates the transformation of the role of digital models in scoring procedures—from 10% in 2020 to over 60% in 2024 – indicating a paradigm shift in decision-making within the banking sector. Empirical data show that the most widely adopted tools of innovative risk management in 2024 are scenario modeling (58%) and stress testing (49%), while ethical AI auditing remains insufficiently implemented (24%).
The article emphasizes that the strategic effectiveness of modern banking management depends not only on the ability to automate operational processes but also on the integration of a comprehensive approach to risk-oriented planning, personnel training, regulatory compliance, and technological ethics. The author concludes that innovative credit portfolio management is not merely a temporary crisis response but a long-term factor in ensuring financial stability, enhancing bank competitiveness, and serving as a tool for post-crisis economic recovery in Ukraine.