Shanghai Pudong Development Bank Issued More Than 9 Million New Credit Cards Last Year Using FICO Originations
Shanghai Pudong Development Bank (SPDB) Credit Card Center, a credit card lending pioneer in China, has increased its customer base using originations powered by technology from analytics software firm FICO.
SPDB Credit Card Center’s total number of credit card applications using originations driven by a big data AI analytics strategy has exceeded 9 million, since January 2017. During this incredible growth, SPDB has maintained a controllable risk level while increasing its origination rate more than two-fold to 88 percent of applications. FICO’s big data AI analytics has reduced risk by 50% with an approval rate that is four times higher.
For its achievements, SPDB has won the 2017 FICO Decisions Award for Customer Onboarding and Management. The winners of the FICO Decisions Awards were spotlighted at FICO World 2018, the Decisions Conference, April 16-19 in Miami Beach, Florida.
FICO’s origination and big data AI analytics solution was introduced with the aim of overcoming the challenges brought by the rapid development of SPDB’s credit card business. One of the key limitations holding back speedy originations was the limited credit data available on customers.
“Using custom scorecards and models from FICO built using Big Data AI analytics, SPDB Credit Card Centre has managed to significantly improve its risk assessment of consumers with either thin files or no files at the People’s Bank of China credit bureau,” said Sandy Wang, managing director in China for FICO. “The coverage rate or scorable population of the FICO models built using big data AI analytics, covers more than 75 percent of applicants.”
Joy Macknight, deputy editor of The Banker, one of this year’s judges for the FICO Decisions Awards, said, “I gave SPDB top marks because of their customer-centric success. They are achieving great results by taking a holistic approach to risk management across originations and collections.”
“SPDB has harnessed analytic technologies to reduce their overall risk, greatly increase the proportion of automatic originations, increase approval rates and scale their collections,” said Sandy Wang. “They have skillfully created a data-driven and comprehensive origination optimization strategy, using advanced decision science technologies and cutting-edge modelling experience from FICO. It has been a fruitful partnership and a project that has yielded significant results.”