CityMortgage Bank Implements Experian’s Scoring Model for Retail Mortgage Operations

Experian, the global information services company, and the mortgage specialist CityMortgage Bank (CMB), have announced that CMB has completed the implementation of Experian’s analytics models for evaluating potential borrowers.

The application scorecard provided by Experian will enable the bank to optimize risk assessment and to apply an individual strategy for each customer at the application stage. The new approach will ensure objective and quicker decisions on applications filed by potential borrowers and will allow the bank to assess their level of risk. This approach reduces credit risk and increases operational efficiency by enabling the automation of the preliminary application analysis.

The implementation of this project was made possible as a result of the partnership between CityMortgage Bank and Experian formed during an earlier ’data audit’ consulting project, and the recognition of Experian’s experience in the development and implementation of several application scorecards for mortgage operations in Russia. The high quality of historical data accumulated by the Bank helped to significantly increase the efficiency of the  models implemented

CityMortgage Bank intends to use the scorecard in all mortgage programs in all regions where it maintains its presence. The scorecard will be subject to a regular review to maintain maximum efficiency, which may lead in the future to the development of niche scorecards for even better predictive performance. As data is accumulated the bank will be able to make a smooth transition from a generic to a bespoke model. Experian’s methods create a partnership in analytics and risk management delivering a significant improvement in the quality of the credit portfolio through working with the bank and a comparative analysis against mortgage scorecards in the CIS.

Commenting on the project, Olga Sadovskaya, board member of CityMortgage Bank said: “This system enables our organization to transition from an expert model of evaluating borrowers to a model which also uses the bank’s statistical data and other criteria for making lending decisions. As a result, the decisioning process becomes simpler, application review times are reduced along with operational and process costs as well as the risk component because the system will enable a more accurate assessment of the probability of default at the application review stage”.

Alexander Belenky, Business Development Director Experian’s Decision Analytics division, said: “Mortgages are perhaps, the most complex credit product available to consumers and we are especially pleased that CityMortgage Bank is continuing to develop operations in this segment and actively improving its processes with Experian’s support. The Russian banking market is entering a new stage in its development when specialization enables banks to create more competitive products, manage risk with greater efficiency and therefore better meet customer needs”.

For further information on the press release please contact:
Beatriz Sanjuán, Media Relations Experian Decision Analytics EMEAI
Tel: +34 617 390 451