Should Credit Applications Always Be Humanized? An Analysis of the Moroccan Credit Market

The article explores the impact of digitalization on the credit application process in Morocco, comparing traditional and digital channels. A survey conducted with 583 indebted Moroccan individuals identifies three categories of variables influencing the preference for a credit channel: personal, technical, and psychological. The results reveal that young, educated borrowers who are familiar with technology tend to favor digital channels for their speed and simplicity. Conversely, older borrowers, those perceiving financial threats, or those applying for high loan amounts prefer visiting physical branches to benefit from personalized assistance. While digital channels enhance accessibility and reduce costs, they also introduce increased risks, particularly in terms of information asymmetry and credit risk. The reliance on self-reported data and automated algorithms may lead to an underestimation of actual risks, while the simplicity of the digital process can encourage impulsive borrowing. To mitigate these risks, the study recommends a hybrid approach that combines digitalization with human interaction, along with strengthening banking supervision and improving organizational agility to ensure effective long-term risk management.