Home Credit Group, which lends to underserved customers with little or no credit history, has chosen FICO Decision Optimiser to further improve its lending offers in multiple markets.
The adoption of FICO’s AI-powered optimisation follows a successful pilot in Russia, which delivered excellent results including significant profitability improvement on the targeted part of the loan portfolio, as well as an increase in new loan volumes.
“We pride ourselves on being a responsible lender whose decision-making in risk management is powered by advanced technology,” explains Radek Pluhar, Home Credit Group’s chief risk officer.“We have a very clear understanding of the consumers we want to continue serving – they are often neglected by other lenders simply because of their lack of credit history. For them it’s vital that we are able to offer a loan with the best possible combination of the price and the loan size which fits their needs. FICO Decision Optimiser will help us to acquire these customers while meeting our demanding risk and reward targets. The advanced technology enables us to boost our competitive edge across our markets.”
Home Credit Group’s central team of data scientists and optimisation experts will further develop country-specific solutions to optimise loan pricing in Kazakhstan and Vietnam initially, with plans to expand into other markets in the next phase.
“Pricing optimisation can generate impressive results in just a few months,” says Petr Kapoun, chief risk officer at Home Credit Russia. “FICO’s optimisation approach brings a clear structure that easily accommodates numerous overlapping policy rules; at the same time, it builds our own analytics expertise into the final decision-making. Such a unique combination delivers truly significant business impact and we are continuously looking for its introduction into new applications areas.”
“We have built an excellent relationship with Home Credit Group’s risk team,” adds Steve Hadaway, EMEA general manager for FICO. “They understand the potential that mathematical optimisation can bring to an organisation. Our pilot delivered outstanding results, giving the business the confidence to implement the solution for other markets targeted for growth amidst challenging environments.”
FICO Decision Optimiser, part of the FICO Platform, supports the entire lifecycle of designing, developing, executing and deploying decision optimisation technology. Its advanced decision impact modelling, simulation and optimisation techniques allow lenders to discover better decision strategies that balance trade-offs between cost, risk and reward, while also factoring in economic and market conditions.
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