SUCCESS STORY

Commercial Bank transforms credit risk management with AI-Powered credit modelling

High accuracy enabled 14% drop in loss rate with 5% increase in approvals
One of the largest Commercial Banks in Southeast Asia with a range of Retail & SME lending products

Country: Cambodia

Company Size: 1,000 – 5,000 Employees

Type: Bank, Retail Lending, SME Lending

Products: Personal Loans; Auto Loans; Mortgage Loan; SME Loans; Overdraft Loans

Results after 3 months

<1 week

to develop and deploy new credit models

8%

Increase in Approvals which reversed rejection rates

The Challenge

The Commercial Bank’s lending growth was stagnating across products. Their credit scorecard was built using a simple rules-based approach and they were finding it difficult derive incremental profitability from lending.

They were hampered by only having a limited number of historical data variables available to develop statistical models for more accurate risk profiling.

The Solution — creditX

  • Feature engineering to create sufficient variables for statistical scorecard development
  • Ensemble ML algorithms for higher predictive accuracy
  • Seamless integration with customer’s Datawarehouse, LOS & LMS systems
  • Bias reduction algorithms incorporated into model development process
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The Results

+96 pts

Increase in GINI

-92%

Time to Develop & Deploy Scorecards

+4%

Increase in approval rates

-14%

Reduction in loss rates

Generating Incremental Profitability

High accuracy credit modelling has enabled our customer to significantly reduce loss rates, resulting in incremental profitability. Additionally, they have been able to safely trial expansions into new segments with an increase in the approval rate; something that they plan to scale in Phase 2.

Plug & Play Architecture

Despite a rule-based approach to credit scoring, our customer was dependent on IT resources to deploy the scorecard. With creditX’s plug & play approach, our customer was easily able to connect their data and LOS with creditX, removing any need for IT support and enabling one-click deployements of new credit scorecards.

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“A game-changer”

finbots.ai’s solution, creditX, is a game changer in credit modelling that supports our Bank’s digital transformation journey.

– Ti Eng Hui, CEO, Baiduri Bank

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