FICO's big data
AI analytics reduces risk by 50%
with an approval rate that is four times higher
BEIJING, China — June 28, 2018
- Since January SPDB
Credit Card Center's total number of successful credit card applications
using FICO originations has exceeded 9 million.
- Origination rate
increased more than two fold to 88 percent of applications.
- SPDB has won the 2017
FICO Decisions Award for Customer Onboarding and Management
Shanghai Pudong Development Bank
(SPDB) Credit Card Center, a credit card lending pioneer in China, has increased its customer base using
originations powered by technology from analytics software firm FICO. SPDB Credit Card Center's total number of credit card applications using
originations driven by a big data AI analytics strategy has exceeded 9 million, since January 2017. During this
incredible growth, SPDB has maintained a controllable risk level while
increasing its origination rate more than two-fold to 88 percent of
For its achievements, SPDB has
won the 2017 FICO Decisions Award for Customer Onboarding and
More information: http://www.fico.com/en/products/fico-customer-communication-services
and big data AI analytics solution was introduced with the aim of overcoming
the challenges brought by the rapid development of SPDB's credit card business.
One of the key limitations holding back speedy originations was the limited
credit data available on customers.
scorecards and models from FICO built using Big Data AI analytics, SPDB Credit
Card Centre has managed to significantly improve its risk assessment of
consumers with either thin files or no files at the People's Bank of China
credit bureau," said Sandy Wang,
managing director in China for FICO. "The coverage rate or scorable
population of the FICO models built using big data AI analytics, covers more
than 75 percent of applicants."
Using the FICO
solution has enabled SPDB to approve more people while controlling credit risk.
Compared to SPDB's control group, the FICO big data AI analytics strategy has
delivered a 50 percent lower risk level but an approval rate that is four times
SPDB has also
deployed a collections system from FICO, which has automated many tasks and
freed human agents to work on high-value cases. FICO's Customer Communication Services (CCS) solution incorporates machine learning and
sophisticated analytics to deliver a collection service that can adapt to the
specific requirements of the customer base.
solution can be optimized and adjusted on an ongoing basis, to meet the
changing collection business objectives. It is estimated the solution is
currently shouldering the volumes previously completed by 60 human agents while
maintaining the same cure rate.
The CCS solution has allowed SPDB Credit Card Center to more
efficiently utilize its team members on the more challenging collection work. It has also allowed the business
to scale in a way that just would not have been possible if the bank had to
find, train and deploy more people in the collections department.
SPDB Credit Card Center team continues to test new ideas and contact strategies
using a champion / challenger methodology, which promotes successful
"challenger" strategies that outperform the current "champions". FICO Customer
Communication Service therefore plays an important role in providing a closed
loop for collection optimization.
Previous to the FICO solution, SPDB was relying on outbound
phone calls only. They now have a multi-channel customer engagement system in
place for collections. This change helped keep the collection rates high through
a clever and systematic system that allows the collections team to follow up
with customers at the right time, using the right channel and with the right
Joy Macknight, deputy editor of The Banker,
one of this year's judges for the FICO Decisions Awards, said, "I gave SPDB top marks because of
their customer-centric success. They are achieving great results by taking a
holistic approach to risk management across originations and collections."
"SPDB has harnessed analytic
technologies to reduce their overall risk, greatly
increase the proportion of automatic originations, increase approval rates and
scale their collections," said Sandy Wang. "They have skillfully created a data-driven and
comprehensive origination optimization strategy, using advanced decision
science technologies and cutting-edge modelling experience from FICO. It has
been a fruitful partnership and a project that has yielded significant
About the FICO Decisions Awards
Decisions Awards recognize organizations that are achieving remarkable success
using FICO solutions. A panel of
independent judges with deep industry expertise evaluates nominations based
upon measureable improvement in key metrics; demonstrated use of best
practices; project scale, depth and breadth; and innovative uses of technology.
The 2017 judges
- Giorgi Alibegashvili, Strategic Project Manager, TBC Bank (2016 award
- Julie Conroy, Research Director, Aite Group
- Douglas Gray, Director, Enterprise Data & Analytics, Southwest
Airlines (2016 winner)
- Joy Macknight, Transaction Banking and Technology Editor, The Banker
- Daniel Mayo, Chief Analyst, Financial Services Technology, Ovum
FICO (NYSE: FICO) powers decisions that help people and
businesses around the world prosper. Founded in 1956 and based in Silicon
Valley, the company is a pioneer in the use of predictive analytics and data
science to improve operational decisions. FICO holds more than 185 US and
foreign patents on technologies that increase profitability, customer
satisfaction and growth for businesses in financial services, manufacturing,
telecommunications, health care, retail and many other industries. Using FICO
solutions, businesses in more than 100 countries do everything from protecting
2.6 billion payment cards from fraud, to helping people get credit, to ensuring
that millions of airplanes and rental cars are in the right place at the right
Learn more at www.fico.com.
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