Digital Twin: Applying the technology to manage a commercial bank's collateral portfolio

Abstract

Subject. This article discusses the development of digital platforms for managing the collateral portfolio of a commercial bank. Objectives. The article aims to develop recommendations for the introduction of innovative collateral portfolio management tools based on the Digital Twin technology, into the bank's collateral management process. Methods. For the study, we used a process approach. Results. The article proposes to synchronize the processes of collecting and processing data flows during the selection, analysis and registration of collateral within the life cycle of the collateral object to ensure the possibility of their correlation with the typed elements of the digital twin system. The article describes a general scheme for integrating the key elements of the digital twin model of the collateral portfolio with the interrelated processes of collateral management and the collateral data flow. This can be considered by practitioners as a way to create a digital twin of a collateral portfolio. Conclusions and Relevance. The relevance of the efficiency of the banking sector of the national economy in the context of the ongoing change in the systemic cycle of capital accumulation and the need to transform process management systems in the banking sector require the introduction of technologies that provide opportunities for prompt, polymodal response to systematically arising challenges. The creation of a management system based on the Digital Twin technology helps form an effective toolkit in the field of collateral portfolio management in the context of the growth of lending by commercial banks projected for the coming years. The results obtained can serve as a basis for the development of collateral management systems for loans and other types of collateral.