Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

@article{172155,
        author = {Kalyan C Gottipati},
        title = {UTILIZING AI AND DATA ANALYTICS FOR PREDICTIVE LOAN DEFAULT MANAGEMENT IN FINANCIAL SERVICES},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {11},
        number = {8},
        pages = {2417-2428},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=172155},
        abstract = {Default is one of the largest threats for financial organizations provoking instability and low profitability. The present paper focuses on the use of Artificial Intelligence (AI) and Data Analytics in Advanced Predictive Loan Default Management, which applies prevention to delinquent accounts. By deploying machine learning algorithmic models as well as sound data pre-processing this research assesses the effectiveness of predicting the likelihood of defaulters.
The study involves real life financial data which includes borrower’s characteristic demographic data and their transaction records and credit trends. They measure such as accuracy, precision and recall are used in order to compare the performance of various accurate models like logistic regression, decision trees and neural networks. Appendices in the form of tables, graphs and diagrams provide patterns and analyzes of the used data and also show the efficacy of the models.
The analytics of risk-based data generated through AI tools demonstrate the ability to improve the precision of measures of risk and hence facilitate the design of effective intervention measures within financial institutions. The study presents direction on how these innovative technologies can be remapped into current processes to achieve better decisions, less credit losses, and better customer service from the financial service providers.
Concisely, this paper discusses the imperative of using AI solutions in the financial services industry and provides suggestions along with a concern call for the stakeholders to implement innovative techniques in risk management strategies.},
        keywords = {Predictive Loan Default Management, Artificial Intelligence (AI) in Finance, Data Analytics for Risk Management, Machine Learning for Credit Risk Assessment, Financial Services Innovation with AI},
        month = {January},
        }