Neoflex completed the project of automation of cross-sellings in Vostochny Bank

2014

On June 23, 2014 the Neoflex company announced control automation by limits of credit cards in "East express bank".

Project Tasks

One of the main objectives of the project which active phase lasted about 4 months - automation of flexible management by limits of credit cards in the conditions of the big loan portfolio – about 10 million active credit cards. For the solution of this business challenge the software package on the FICO Blaze Advisor platform, integration with information systems of bank was implemented.

Project Progress

Implementation of FICO Blaze Advisor was followed by preparation of an integration landscape for passing by data of a full stroke – from selection of agreements on the set signs before automatic generation of postings in the core banking system of bank on change of limits and closing of a revolvernost (renewability) of the credit card.

In the employees assistance of "East express bank" specialists of Neoflex company provided trainings on work with a software package, in particular, on review of limits of credit cards on the Blaze Advisor platform.

Important component of a system - the reporting module created by the staff of Neoflex. Its functions include report generation with statistical data under each agreement. During the project the staff of Neoflex held stress testing which confirmed the high performance of a system.

In 2013 in partnership with Neoflex company in bank the solution on control automation was started by limits. Upgrade and optimization of the created architecture allows bank to expand the available functionality and to receive service for cross-sellings of the products. At this stage the analytical works are completed, and by April-May, 2015 the common decision should come out in commercial operation that will allow bank to rebuild quickly risk policy depending on the current market situation.

The solution allows to implement in the user interface selection of clients on review of limits and preparation of the preapproved offer, using different filters – by date of the last offer, on an event, for example, to closing of the large credit in other bank. Thus, the bank "will have the finger on the pulse" clients, monitoring all changes, and quickly considering these data by preparation of the following offer to the client. Within improvement of convenience of using of a system and new service "BKI Triggers" completions of the solution on review of limits will be implemented.

The universal software platform providing all marketing activities of bank will be demanded at once by several of its divisions, including Blok risks, structures of marketing, operational and analytical departments. At the same time information will be constantly updated taking into account data of BKI. The platform will provide high profitability of business, speed and quality of decision making, forecasting accuracy of figures of merit of a portfolio and volume of reserves.

Project Results

Alexey Kordichev, the vice chairman of the board of "East express bank", the director of risks, noted: "Level of required reserves of credit institution in many respects depends on reaction of bank to change of signs of a financial status of clients and flexibility of review of limits of credit cards. It is especially important in the conditions of the become tougher requirements of the Central Bank of the Russian Federation to the minimum reserves on losses on unsecured loans (The instruction of the Bank of Russia N3098-U "About Making Changes in Provision of the Bank of Russia of March 26, 2004 N254-P"). The created solution meets our requirements and allows to manage effectively a portfolio of credit cards".

Anton Lazebny, the head "Risk management" of Neoflex company, told: "On the basis of the FICO Blaze Advisor system the bank received the solution for automation of an important business challenge – management of limits of credit cards". We are ready to offer the accumulated experience to other banks as for many credit institutions having a big card portfolio it is one of the most topical issues now. The business rules management system of FICO Blaze Advisor is also used for solving of tasks of cross-sell/up-sell, offline-scoring, customer segmentation for marketing actions or applied as the tool to fast recalculation of a limit of the client's request in Internet bank and contact center".

2015

December 2, 2015. The Neoflex company announced project completion on automation of cross-sellings in Vostochny Bank.

Project Development

After the successful project on control automation by limits which came to the end in 2014, the Vostochny Bank made the decision to continue cooperation with Neoflex company, having implemented calculation of the preapproved offers to clients of bank therefore it was succeeded to automate process of cross-sellings. The project startup on cross-sellings is the next step of bank on upgrade risk strategy in the conditions of difficult market situation.

Continuing the selected policy on quality improvement of work with the current clients, the Vostochny Bank together with Neoflex implemented the project directed to improvement of process of preparation of targeted offers. The staff of business division received the tool for operational segmentation of clients on the difficult business logic considering the history of relationship with the client and his preferences and also the nature of use of products of bank.

Result

The solution developed by Neoflex allows credit experts together with marketing specialists in a user-friendly interface to implement selection of clients for preparation of the preapproved offer. Flexible filters, such as date of the last offer, type of the products used by the client, or an event, for example, closing of the large credit in other bank are for this purpose used. Thus, the Vostochny Bank "has the finger on the pulse", quickly considering customer information by preparation of the following personal offer taking into account personal requests and requirements. At the disposal of bank about 40 scoring models allowing to analyze and selectively to calculate offers for each client. Executed a considerable part of the works connected with preparation of client information, bank independently. On a closing stage of the project stress testing of the implemented system during which optimization of a system under amounts of data of bank is performed was held and solution performance at the required level is provided.

In a project deliverable in Vostochny Bank the solution on the basis of the FICO Blaze Advisor platform for formation of the preapproved offers is implemented, representatives of the company integrator reported TAdviser.

Anton Lazebny, head of the Risk management business direction of Neoflex company: "The difficult logic of customer segmentation became feature of the project of automation of preparation of cross-offers. Strategy creates very point so very demanded, offers to clients of Vostochny Bank. It would also be desirable to note professionalism of the command of bank which always is giving accurate problem definition and having a fair idea of result which needs to be reached".

Victoria Kurkina, Director of the department of scoring of Vostochny Bank: "The previous project on control automation by limits of credit cards executed jointly by Vostochny Bank and Neoflex company well influenced business of bank: the operating experience of a system showed that about 50% of clients which automatically increased a credit limit took advantage of this offer. In bank the decision on the basis of already implemented decision making system to start calculation of cross-offers to the acting clients as the least risky method of increase in the loan portfolio of bank and increase in profitability in the conditions of a current economic environment was made. The solution on preparation of cross-offers of Vostochny Bank appeared in commercial operation in an early autumn of 2015, and we hope that business results of this project will be same high, as well as results of the previous joint project with Neoflex.