Jet Infosystems and UniCreditBank automate credit analysis
Moscow. Jet Infosystems and UniCreditBank have essentially completed the automation of credit analysis for individual clients, small and medium-size businesses. The VRM solution has been integrated with the scoring system and 20 external sources. Checking procedures in external and internal databases have been automated. The new system scrutinizes initial information about the client, requests the necessary data from external sources and makes a decision, thus saving time for the loan officer and facilitating his work. The system can process up to 2,000 loan applications from individuals a day with far fewer mistakes than before.
Any financial institution should be able to evaluate the creditworthiness of a borrower in a fast and error-free manner. If performed manually through CRM, such evaluation is too slow. Also, the quality of analysis and the final decision depend on the skills of loan officers, i.e. errors were often made due to the human factor.
At the first stage, credit analysis was automated for individual loan (and mortgage) applications. Once the user enters client data into the CRM system, a request for more detailed information is sent, if needed, to external sources (credit bureaus, collection agencies, security services and so on). These data are supplied to the scoring system that makes the final decision based on over a thousand parameters. Once integrated, these two solutions can launch intricate multilevel checking cycles. Note that the loan applicant is checked as well as the guarantors to increase the flexibility of lending policies: for instance, the system may recommend to grant the application to a trustworthy borrower but replace a suspicious guarantor.
Credit analysis for small and medium-size businesses was automated in a similar way, though interaction algorithms for the system were modified in accordance with rules for legal persons. In addition, an automatic document generator was added to prepare rather long and sophisticated loan agreements.
“The full-scale use of the system has improved and accelerated the processing of loan applications, especially in complex situations. The new system can be easily adjusted to changes in laws, regulations and internal policies regarding retail lending. It also provides a flexible personal approach to the client, which is a main priority for our bank. Now we can better manage the process as a whole as well as control its particular stages and develop a variety of decision-making strategies, - notes Milan Dynar, director of the retail credit risk department, UniCreditBank. – In addition, thanks to this project the bank has consolidated all credit analysis divisions at its branches at the Moscow office.”
“The project involved close cooperation with the client for maximum customization and the use of optimal solutions,” - tells Vladimir Shustov, director of the sales department at Banking technologies Center, Jet Infosystems. – The outcome is a sophisticated array of several systems with a large number of interaction rules that has greatly facilitated the work of bank employees.”
UniCreditBank, that has been operating in Russia since 1989, is the tenth largest bank in terms of assets (Interfax-100 ranking) and the largest foreign bank in the country. It is fully owned by UniCreditBank Austria AG, a member of UniCredit Group. The Bank enjoys a strong position in the Russian corporate finance market and operates a robust retail banking business.