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Decision Management Drives Significant Credit Card Growth

Credit Card Growth - Response Rates Up, Costs Down

China Minsheng Bank Credit Card Center has used FICO® Blaze Advisor® decision rules management system to help grow its business by creating an intelligent, automated marketing system that delivers targeted offers, which have seen a 10 to 15 percent jump in response rates. China Minsheng Bank has reduced the time required to launch a marketing offer to just days resulting in a time cost saving of 70 percent. By reducing the time to market, and by better personalizing the offers, the initial activation rate has increased by two percent, while the initial transaction rate is up by 14 percent.

“We have improved our marketing efficiency, response rate and customer satisfaction, by upgrading our marketing campaigns to more personalized ones, using FICO’s world-class decisioning technology,” said Jingiao Yu, director of technology, Credit Card Center at China Minsheng Bank. “The whole process is now automated, from data analysis to campaign review phases, and does not need manual intervention. We have reduced our costs and switched to a customer-focused model, rather than a product-centric model.”

Credit Card Growth - In a Highly Competitive Market

China Minsheng Bank Credit Card Center (CCC) provides 366 card products to more than 35 million consumers, making it one of the ten largest credit card issuers in APAC. Due to China’s highly competitive market, the bank needed to make precise marketing offers to cardholders in order to win business and maintain customer loyalty.

Minsheng CCC’s Blaze solution, referred to internally as its ‘Intelligent Marketing System’ carries out differentiated marketing for all its customers by automating a very complex series of decisions. For example, when collecting customer information it collects and processes raw application data covering more than 4000 primary variables. Then during decision deployment, nearly 100 variables on customer risks and customer benefits, several scorecards, some card-use activities, a handful of lifecycle campaigns, a couple of upgrade campaigns, and the eligibility criteria for all campaigns are combined for advanced decision management in FICO Blaze Advisor.

“This is the first time we have used big data to guide marketing campaigns and to create further segmented customer management and precision marketing,” said Jingiao Yu. “The scoring model makes a scientific decision for each customer by assessing the customer’s credit risk, fraud risk and behavior profile. Automating approvals saves substantial time as well as operating costs, making us nimbler and more competitive.”

Credit Card Growth - What's Next?

As a result of this successful implementation, China Minsheng Bank CCC is now expanding its use of decision management to tackle other parts of the lifecycle. As a next step, the bank will use Blaze Advisor for a new online payment app. They will also deploy the marketing solution across all lines of business and will use Blaze Advisor to build a decision platform for the entire enterprise.

“This project has helped China Minsheng Bank Credit Card Center to dramatically improve its customer experience and competitiveness in the market,” said Sandy Wang, managing director, FICO China. “Intelligent marketing and originations via digital channels is a prominent, growing trend in China. Automating the process has been a substantial achievement and a real innovation, especially an approach that delivers greater profits but keeps losses in check.”


If you are interested in learning more you can download the full case study for this project here.


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