Abstract for: Consumer Lending System Modeling

Research is devoted to applying System Dynamic tools for modeling modern consumer lending system. Due to the various factors, its behavior changed and became more complicated. An incomplete understanding of it for lenders may lead to mistakes in their credit strategies and, as a result, non-optimality of loan granting. Our objective is to create an effective tool for banks to model the consumer lending system taking into account its new tendencies. The theoretical framework of the model is based largely on Minsky’s theory. The model reflects the influence of GDP change, fintech rivalry, an alternative to credit money use, and risk management on the dynamic of the lending system. Particular focus is devoted to competition between banks and fintech companies. The simulation was used for verification results and to forecast the development of the consumer lending system.