New Business Strategy Management, Collect Strategy Management and Hunter from Experian reduce operational costs, facilitate decision making and improve the bank’s credit portfolio
BankVTB 24, part of VTB Group, one of the fastest growing Russian credit institutions serving individuals, entrepreneurs and small businesses, has reported a substantial increase in efficiency across its operations following the introduction of a series of products from Experian®, including New Business SM, Collect SM and Hunter.
Since July 2006, VTB 24 has been using scorecards for all of its retail products (credit cards, consumer loans, autoloans and mortgages), which are part of New Business SM software module. New Business SM enables the bank to develop strategies for working with customers based on scoring models and information received from credit history bureaux. According to Vadim Kulik, VTB 24 Senior Vice President, “the system enabled the bank to move from an expert-based model of assessing borrowers and warranters to a model based on statistical probability derived from statistical data. Implementation of the system has enabled us to simplify solvency assessment, reducing the time needed for lending decisions from three hours to 30 seconds, reduce operating risks by preventing internal fraud through customer data, use mathematical and statistical methods to determine limit sizes, which helped us grow the credit portfolio to 4 billion rubles or 360 million rubles in additional annual revenue, and reduce 30-day delinquencies by half (in consumer financing).”
New Business SM enabled the bank to centralise its decision making processes to its Moscow headquarters, serving the bank’s expanded network across the country. As a result, VTB 24 increased productivity in application processing and decisioning by 28 times.
VTB 24 also implemented Collect SM, a system designed for collections. According to V.Kulik, “the system enables us to take into account all measures taken in respect to customers with delinquency and apply various strategies depending on the loan amount, term and behavioural characteristics of the borrower. This enabled us to increase efficiency in collections of under-30 day delinquencies by 13% and 90 day plus delinquencies by 50%.”
As part of its initiatives to reduce risks and minimise losses from fraud, VTB 24 is implementing Hunter, a specialist Experian solution used by organisations in over 30 countries worldwide to prevent credit fraud during application processing. Hunter will be implemented in a real-time environment, integrated with the bank’s application processing system. As a result, decisions on genuine customer applications can be made automatically and new business rapidly accepted, while suspect fraudulent applications are highlighted, investigated and can then be declined, preventing fraud losses from occurring in the first place.
Daniel Zelenski, Head of Experian’s Decision Analytics division in Russia and CIS, said: “We are very pleased that one of Russia’s leading credit institutions is benefiting from our solutions as a result of the partnership between our two organisations. By implementing risk management tools, such as New Business SM, Collect SM and Hunter, provided by Experian’s Decision Analytics division, VTB 24 has put its trust in these tools to be the most efficient available, and we, in turn, expect that these tools will be used by VTB 24 with maximum effect. Experian has all necessary resources to further our co-operation to VTB 24’s advantage.”
For further information on the press release please contact:
Beatriz Sanjuán, Media Relations Experian Decision Analytics EMEAI
Tel: +34 617 390 451
Peter Brooker, Public Affairs Director, Experian
Tel: +44 (0) 115 934 4548.