Nordea Bank: results of implementation of a scoring system

On March 12, 2014 the Experian company summed up the results of work of the platform of decision making of NBSM integrated in Nordea Bank in March, 2013.

Project Results

Implementation of NBSM provided automation of process of consideration of requests and at the expense of it reduction of time for adoption of the credit solution, reduction of cost of processing of one request.

According to data of partners in the project, about 20% of the requests NBSM reject at once and employees of the bank do not spend time for their consideration.

"If earlier risk analytics all 100% of incoming requisitions, then checked only 30% now, - Abdullo Akhadov, the head of department of credit process of Nordea Bank noted. – Implementation of NBSM allowed to reduce labor costs by consideration of requests considerably. Decrease in labor costs, in turn, led to the fact that the average cost of processing of the credit request was cut by half".

As a result of business process reengineering the term of consideration of the request for the credit was reduced from three days till three o'clock - at most one day if any amendments are necessary. The term of consideration of the request includes input time, manual processing of the automated results forming in NBSM online, the preparation of documentation and other works requiring participation of the person.

Automation of decision making process according to the request allows to reduce subjectivity in the borrower's assessment and also to reduce risk of operational errors by preparation of the credit solution by the employee of the bank. NBSM is also used for the offer to the client of optimal conditions of crediting. If for some reason the policy of bank does not allow to issue to the client the credit in a required form, a system selects several options of crediting to the client on the requested and increased terms. Also NBSM can offer the lowered interest rate for clients with positive credit history.

"From the technical point of view of NBSM completely conforms to requirements of banks to functionality and the user characteristics. A system does not allow to make mistakes and inaccuracies when filling the loan application, conforms to the preconfigured rules of assessment of the request, keeps the reporting under all transactions passing through it, - Alexander Morozov, the global consultant of Experian told. – At the platform the simple interface, it is easy for it to manage: small adjustments are entered into the system of everything in 15 minutes. Besides, NBSM include the function of an external call allowing to make a pause and to apply to external sources for the additional information in the strategy for the course of decision making process. This option does work in a system effective and allows to avoid need to carry out multiple integration with other systems installed in bank".