Year: 2025
Type: article
Abstract: This review examines the evolution of credit risk management in the digital age, highlighting the transformative impact of emerging technologies such as big data, artificial intelligence (AI), machine learning (ML), and blockchain. Traditional credit risk management methods, which primarily relied on credit scores and financial statements, are being enhanced by these digital tools, enabling more accurate and real-time assessments of creditworthiness. This paper explores the key challenges faced in digital credit risk management, including data privacy and security concerns, algorithmic bias, and regulatory gaps. Furthermore, it provides insights into the strengths and weaknesses of both traditional and digital approaches, with a focus on how different industries are adopting digital technologies to manage credit risk. Finally, the paper discusses the future landscape of credit risk management, emphasizing the need for robust governance and regulatory frameworks to ensure the ethical and fair use of digital tools in the credit industry.
DOI: 10.71222/ps8sw070
Author: Lixia Yun
Institution: Beijing Language and Culture University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4412586204