Grupo Monge Grows Credit Approvals 10% Using FICO Analytic Decisioning to Extend Loans to Underserved Consumers
- Grupo Monge has expanded credit approvals by 10 percent, reduced expenses by 25 percent.
- Grupo Monge scales lending with flexible, efficient and decentralized risk decision-making technologies.
- Grupo Monge won a 2021 FICO® Decisions Award for financial inclusion.
Grupo Monge, one of the largest multinational retail companies in
Grupo Monge is a retail giant with more than 500 stores operating in
Prior to the implementation of FICO Blaze Advisor, credit analysis was made in person at Grupo Monge businesses in a process that customers found long and complex. While there was great demand from consumers to purchase substantial items on credit such as motorcycles, electronics and whitegoods, the company's growth was being hamstrung by inflexible systems.
"We understood that for our business to scale we needed a way to improve our ability to assess customers and create a unique approach in the market," said
For many of the customers in the target segment for this project, buying consumer goods with cash was their only option. Grupo Monge knew they could change this and finance a large part of the population that needed credit to equip their homes.
To achieve this, Grupo Monge needed to assess each consumer's risk accurately. FICO worked with Grupo Monge to develop scorecards that would help them automate the process as the volume of credit applications increased. Rather than just one predictive model, Grupo Monge and FICO saw the opportunity to produce country-specific models that captured regional risk patterns.
These models are activated within FICO® Blaze Advisor®, an advanced tool for decision strategy management. FICO Blaze Advisor is now the "central brain" for the credit decision process in all countries. Grupo Monge's risk management teams can develop, author and test their own policies, which has accelerated implementation of strategy changes and improvements.
Beyond the automation of the origination process using scorecards and FICO Blaze Advisor, Grupo Monge is now using this "central brain" to make fraud, collections, and cross-sell decisions as well. Most recently Grupo Monge and FICO worked on a cross-sell project to detect incremental opportunities using the existing platform.
"By automating business rules and centralizing the analysis process, Grupo Monge has modernized its lending approach," said
For its achievements, Grupo Monge won a 2021 FICO® Decisions Award for financial inclusion.
"Grupo Monge has had a comprehensive and strategic approach to building credit opportunity across six countries," said Prasanna Dhoré, Chief Data & Analytics and Innovation Officer at Equifax and one of the FICO Decisions Awards judges. "What they have managed to achieve in terms of financial inclusion is quite remarkable. They have coordinated the credit process across multiple areas of their company from sales to risk, customer service to finance."
About Grupo Monge
Grupo Monge is a Costa Rican corporation that is dedicated to the retail sale of home appliances and furniture in Central and
Grupo Monge operates under the following five commercial brands
El Gallomás Gallo
For more information, please visit www.grupomonge.com
About the FICO® Decisions Awards
The FICO 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 measurable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2021 judges are:
- Prasanna Dhoré, chief data & analytics and innovation officer, Equifax
David Dittmann, vice president, data & analytics, P&G (2019 winner)
- René Javier Guzmán, market & liquidity risks director at Banreservas (2019 winner)
Tomas Klinger, decision science and data director at Home Credit (2019 winner)
- Marcel Le Gouais, managing editor at Credit Strategy
Tiffani Montez, banking analyst at Aite Lisa Morgan, journalist & analyst at InformationWeek Ignazio Provinzano, head of risk operations at Swisscard (2019 winner)
The winners of the FICO Decisions Awards will be spotlighted at and win tickets to FICO® World 2021, the
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in
Learn more at www.fico.com.
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