The economic existence of many consumers and companies is on shaky ground. In a recent article, the credit insurer Coface calculates that insolvencies in 2020 would have risen by 9% without government support. Many economic experts are predicting a wave of insolvencies triggered by Corona before the end of this year. This wave will undoubtedly hit the banking sector, too, for example as a result of loan defaults.
A major problem is the relatively low level of digitization in Germany – and also in the banking industry. Manual work steps are slowing down the supply chain. In these difficult times, automated processes and artificial intelligence can provide a solution. Smart algorithms can be used as an early warning system to avoid default; technologies such as AI optimize repayment rates and maturity based on data. Collenda CEO Hartmut Wagner explains how this can work in a feature for the Swiss Finance platform The Onliner.