LONDON, October 22, 2020 / PRNewswire / –
- FICO® Decision Optimizer will help Home Credit Group effectively tackle saturated and growing markets
- Pilot with targeted loan portfolio in Russia brought a significant improvement in profitability and an increase in volumes
- The Home Credit Group risk management team will first use the tool to optimize loan solutions for consumers with little or no credit history in the area. Kazakhstan and Vietnam
Home Credit Group, which lends to underserved clients with little to no credit history, chooses FICO® Decision Optimizer to further improve its loan offerings in several markets. FICO’s adoption of AI-based optimization follows a successful pilot project in Russia, which recorded excellent results, in particular a significant improvement in the profitability of the targeted part of the loan portfolio, as well as an increase in the volumes of new loans.
More information: https://www.fico.com/en/products/fico-decision-optimizer
“We are proud to be a responsible lender whose risk management decision-making is fueled by cutting-edge technology,” explained Radek Pluhar, Risk Director of Home Credit Group. “We have a very clear understanding of the consumers we want to continue serving – they are often overlooked by other lenders simply because of their lack of credit history. For them it is essential that we can offer a loan with the best possible combination of price and loan amount that matches their needs. FICO Decision Optimizer will help us acquire these clients while meeting our demanding risk and reward goals. Cutting-edge technology allows us to strengthen our competitive advantage in our markets.
Home Credit Group’s core team of data scientists and optimization experts will further develop country-specific solutions to optimize loan pricing in Kazakhstan and Vietnam initially, with plans to expand to other markets in the next phase.
“Price optimization can generate impressive results in just a few months,” said Petr Kapoun, Chief Risk Officer at Home Credit Russia. “FICO’s optimization approach provides a clear structure that easily adapts to many overlapping policy rules; at the same time, it integrates our own analytical expertise into the final decision-making. Such a unique combination offers a really big business impact and we are constantly researching its introduction into new areas of application. “
“We have established an excellent relationship with the risk management team at Home Credit Group,” added Steve Hadaway, Managing Director EMEA of FICO. “They understand the potential that mathematical optimization can bring to an organization. Our pilot project yielded exceptional results, giving the company the confidence to implement the solution for other markets targeted for growth in challenging environments. “
FICO® Decision Optimizer, part of FICO® Platform, supports the entire lifecycle of the design, development, execution and deployment of decision optimization technology. Its advanced decision impact modeling, simulation and optimization techniques allow lenders to discover better decision strategies that balance the trade-offs between cost, risk and reward, while taking into account economic conditions and of the market.
About Home Credit Group
Founded in 1997, Home Credit focuses on responsible lending primarily to people with limited access to financial services and is fully licensed to operate in its chosen markets. It served nearly 125 million people in nine markets. Home Credit stimulates and expands financial inclusion by providing finance to underserved populations where and when they need it through its omnichannel distribution network, while providing a positive and secure borrowing experience. He has operations in (1) Central & Eastern Europe including Czech Republic and Slovakia; (2) the Commonwealth of Independent States, including Russia and Kazakhstan; (3) China and (4) South and South East Asia including India, Indonesia, Vietnam and Philippines. Learn more at http://www.homecredit.net.
FICO (NYSE: FICO) makes decisions that help people and businesses around the world thrive. Founded in 1956 and headquartered in Silicon Valley, the company is a pioneer in using predictive analytics and data science to improve operational decisions. FICO holds more than 195 U.S. and foreign patents on technologies that increase profitability, customer satisfaction, and business growth in financial services, telecommunications, healthcare, retail, and many other industries. Using FICO solutions, businesses in more than 100 countries are doing everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of planes and rental cars are in the right place at the right time.
Learn more at https://www.fico.com
FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.