Given the new environment, Banking Industry is called upon to renovate their Strategy & Recovery process Paradigm.
From one hand, Regulators put pressure to reduce NPL Stock and increase provisioning (NPE Guidance, IFRS9, Addendum NPE & Prudential Backstop), on the other hand, Financial System can leverage on new recovery options (Disposal, Collateral promotion and repossession, Outsourcing) to optimize timing and recovery rates.
Moreover, Artificial Intelligence can foster unstructured and complex decision-making such as workout strategy selection, by taking into account new variables previously disregarded.