ADAPTIVE CREDIT PRODUCT STRATEGIES OF BANKS FOR SMALL BUSINESSES IN THE DIGITAL ECONOMY

Abstract

The sustainability of small and medium-sized enterprises depends critically on their access to appropriately designed credit products. As financial systems undergo rapid digital transformation, banks are compelled to rethink traditional lending models for small businesses characterized by information opacity, limited collateral, and volatile cash flows. This article examines how banking institutions adapt credit product strategies for SMEs through technological innovation, advanced risk analytics, and redesigned business models. Drawing on international empirical evidence and selected data from Uzbekistan’s banking sector, the study highlights the growing role of data-driven credit assessment, fintech collaboration, and regulatory support in expanding SME financial inclusion. The findings demonstrate that adaptive credit strategies not only mitigate risk but also contribute to employment growth, productivity enhancement, and macro-financial stability.