The global economic downturn in 2020, when GDP fell sharply year over year, put significant pressure on loans as many individuals and small and medium-sized businesses struggled financially. Banks faced rising risks from delinquencies and potential growth in nonperforming loans, as projected by regulators. A targeted, data‑driven approach to managing distressed borrowers can significantly improve outcomes. By focusing on the right accounts, banks can increase recovery rates, encourage more borrowers to accept repayment plans, and reduce delinquencies that escalate into write‑offs. This approach helps banks mitigate the financial impact of tighter regulations, limit accelerated losses, and ultimately strengthen their bottom-line performance.

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