Risk & Compliance SPDB Credit Card Centre Automates Early Collections

Automates Early Collections

Shanghai Pudong Development Bank (SPDB) Credit Card Centre (CCC), one of the leading credit card issuers in China with more than 40 million cards issued, has used FICO® Customer Communication Services (CCS) to boost collections performance while driving down business costs. Recent years have seen a rapid development of SPDB’s credit card market, an expanding scale of assets and stricter regulatory requirements on its collection business. In addition, the lender was also experiencing challenges to collection work and risk control due to human resource limitations. So, to improve the risk management of its business and break through the limitations of traditional human collection agents, SPDB looked to intelligent automation and introduced FICO’s CCS system in 2016. CCS uses intelligent two-way communications such as phone calls, SMS and email to connect with customers with the right message at the right time. CCS allowed SPDB CCC to tailor different treatment strategies to... [Read More]

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Fraud & Security Got Enough Fraud… Models That Is?

Fraud Models

When designing a strategy for detecting and preventing fraud, everyone always comes to the same conclusion—there is no silver bullet. There are simply too many variables, and too much change in technology, customer behavior and fraudsters’ tactics for any one solution to work effectively and sustainably for every organization, no matter how sophisticated. Consequently, experienced fraud management executives are constantly experimenting and evaluating new data sources, scores, models, algorithms and technologies for that competitive edge. They observe customers’ behavior, survey their preferences and maintain a working knowledge of fraudsters’ evolving tactics. The goal is the same for everyone—minimize fraud losses while effectively balancing customers’ experiences and operational expenses. But the exact recipe each organization lands on—the mix of processes, people and products—varies widely and changes constantly. Fraud Models – Five keys to finding the right fraud score Many different providers—whether associations, processors, switches or analytic firms—have begun to offer unique... [Read More]

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Risk & Compliance 3 in 5 APAC Banks Do Not Have Full Digital Account Opening

Full Digital Account Opening

A recent survey by analytics software firm FICO has revealed that three in five (60%) banks in Asia Pacific have yet to offer a full digital account opening process for new customers, despite recent reports that nearly 9 in 10 financial institutions in the region embarked on digital transformation. Full Digital Account Opening – Challenges The region’s changing regulations (28%) and the need to create digital know-your-customer (KYC) and anti-money laundering (AML) (21%) solutions were cited as the two key challenges for APAC banks looking to acquire new customers online. “In Asia, the identification processes used for services such as e-government, banking or telecommunications evolved independently of each other, leading to a fragmented approach with inconsistent levels of security,” said Dan McConaghy, president of FICO in Asia Pacific. “Open banking and regulations like Europe’s PSD2 are now bringing regulatory rigor to bear on the issue and forcing banks to comply to certain... [Read More]

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Customer Engagement Telecoms Leverage Omni-channel Collections to Reduce Churn and Improve the Customer Experience

Telecom Webinar

Telecoms today face many challenges, including high roll rates and expensive high-touch contact strategies. A key challenge is to more effectively communicate with customers. A growing number of consumers prefer to conduct business on their mobile devices, and many have a preference for the type of communication they receive, whether it’s via IVR, email, or SMS. Telecoms are struggling to establish best practices around how to optimize these interactions. Telecoms have to do more with less.  By deploying advanced analytics, including AI and Machine Learning, they can gain a greater understanding of customer expectations and experiences. By automating processes and improving the customer experience, we have actually seen delinquency rates drop by 40%, collection costs drop by 15%, and a reduction in the number of days it takes to collect. Customer experience and satisfaction has been ranked a number-one business priority by a large majority of the top telecoms, globally. By... [Read More]

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Risk & Compliance Reinventing Origination: Fixing the Decisions that Matter


In this series, I discussed how digital transformation is reshaping the origination processes and improving the customer experience. The previous two blogs have looked at how automated systems can be used to drive new business growth, and how it can sustain current customers by improving the customer experience. For the final installment in the series, I want to discuss how analytics can transform the offer determination and decision accuracy process. Utilizing Analytics to Streamline Offer Determination Prescriptive analytics can be used to evaluate all possible offer combinations and identify which ones will maximize target performance metrics while adhering to organizational constraints. Doing so can lead to more flexible offers for consumers and increased sales for dealers, without compromising risk or compliance standards. For example, we all know that a trip to the car dealership can be tedious and anxiety-inducing. However, auto finance providers are looking to make it easier for... [Read More]

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