The Use of Automatic Value Determination Services in the Process of Mass Revaluation of Passenger Cars in the Collateral Portfolio of a Commercial Bank: Opportunities and Prospects

Abstract

The modern banking system is characterized by high regulatory oversight and the constant need to adapt to rapidly changing market conditions. Second-tier banks must comply with numerous legislative requirements, ensuring that every process—from transaction processing to lending—meets established standards to ensure operational security and transparency. As a result, banks require more time to implement new technologies and products, as any changes must comply with regulatory requirements. Despite these challenges, optimizing and automating internal banking processes remain a top priority. Process optimization is crucial for enhancing bank efficiency and competitiveness under strict regulation and high competition.

Regular revaluation of collateral is a key aspect of a bank’s collateral management. Revaluation involves reviewing the current value of pledged assets periodically to ensure sufficient coverage and minimize collateral risks. However, the process can be labor-intensive, particularly for large portfolios or diverse assets. This article explores optimizing passenger car collateral monitoring through mass revaluation.