The Asian Banker Wednesday, 24 July 2024

China Minsheng Bank processes 3.5 million online credit card applications automatically using FICO customer onboarding

5 min read

Using FICO® Blaze Advisor® decision rules management system to manage its risk management models and automate decisions, China Minsheng Bank has built a system that allows consumers to apply for credit cards using either online or mobile channels and receive an instant approval decision.

So far, in just over a year, the bank has received more than 3.5 million applications through online channels, with approval rates of up to 85% (measured monthly) and decisions delivered to customers within three minutes.

The bank wanted to take advantage of the consumer trend in China towards e-services and grow its market share of 20 million credit cards by automating its approval process. The bank also integrated this approval process into its online application channels. China Minsheng Bank saw a rapid return-on-investment, with the FICO Blaze Advisor project up and running within six months.

The solution is truly multi-channel — people can apply through mobile banking, WeChat, MMS, QR code, third-party apps, web portals and third-party websites.

The resulting data is analyzed against a scoring model built with the use of valuable external structured data. The model uses FICO and third-party platforms to collect information on an applicant’s transactions and consumption behavior. This allows the origination and underwriting process to be flexible and proactive.

For China Minsheng Bank, this was critical, as the bank was observing that the traditional ‘offline’ business model was no longer effective in reaching a large customer base, quickly assessing credit ratings, increasing operational efficiency and improving customer experience.

The China Financial Certification Authority expects that mobile banking customers will account for around 24 percent of the total e-banking users in 2015, and that 40 percent of those will buy financial products through their smartphones.

Doctor Victor Yu, IT Department, Credit Card Center, China Minsheng Bank said, "We wanted an improved experience for our customers. So we needed to change the traditional way of thinking, and use digital technologies to improve our response times and agility. FICO’s solution helped us to transition from traditional face-to-face marketing and originations to an online that yielded strong results and satisfied customers.”

Joel Wells, Director, Application Development, Discover Financial Services, said, “As one of the judges for this year’s Decision Management Awards, I was impressed by China Minsheng’s integration of multiple technologies in order to provide high quality risk decisions and superior customer service. This project shows China Minsheng’s commitment to being one of the leaders in the growth of China’s credit economy.”

John Chen, Managing Director, FICO China, said, “This project has helped China Minsheng Bank to dramatically improve its customer experience and competitiveness by granting instant approval decisions to customers. I am proud that one of our customers in Asia Pacific was selected among a global pool of organizations to win the 2015 FICO Decision Management Award for Customer Onboarding and Management.

”The FICO Decision Management Awards recognize companies that have achieved outstanding business results using FICO predictive analytics and decision management solutions. For more information: http://www.fico.com/dmawards 

Re-disseminated by The Asian Banker

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