THE ROLE OF DIGITAL TECHNOLOGY IN THE EFFICIENCY OF RESOLVING NON PERFORMING LOANS THROUGH COLLATERAL SALES

Abstract

The development of digital technology has undergone significant changes in the business sector including the banking industry. One of the main challenges in resolving non-performing loans (NPLs), which often involves the sale of collateral as a method to recover assets. The purpose of this article is to explore how digital technology can improve efficiency in resolving non-performing loans through optimization of information systems, digitization of the auction process, and the application of big data and artificial intelligence in resolving non-performing loans. This article is compiled based on a qualitative approach with a literature study method that examines various academic sources, and a direct approach during work practices in the application of digital technology as a resolution of non-performing loans (NPLs). The analysis is carried out by examining how optimization of information systems, digitization of the auction process, and the use of big data and artificial intelligence contribute to improving the efficiency of resolving non-performing loans in the banking industry. With a cloud-based system and real-time data integration, banks can conduct risk analysis more quickly and accurately. In addition, the digitization of the auction process through an online platform makes it easier for creditors to sell collateral assets transparently and competitively, so that it can accelerate the asset recovery process. Artificial intelligence also functions in asset valuation, helps determine the most appropriate market price, and automates the document verification process, which has an impact on reducing human errors and accelerating the resolution of problematic loans. With the efficient adoption of digital technology, the banking sector can increase productivity in handling problematic debts, reduce the level of bad debts, and strengthen overall financial stability. Therefore, the application of digital technology is a crucial step in facing the challenges faced by the banking industry in today's digital era.