How China Minsheng Bank Moved to Instant Credit Decisions

The China Financial Certification Authority expects that mobile banking customers will account for around 24% of the total e-banking users in 2015, and that 40% of those will buy financial products through their smartphones.

China Minsheng Bank wanted to take advantage of this consumer trend in China towards e-services and grow its market share of 20 million credit cards by automating its approval process.

Using FICO® Blaze Advisor® decision rules management system to manage its risk management models and automate decisions, China Minsheng Bank has built a system that allows consumers to apply for credit cards using either online or mobile channels and receive an instant approval decision.

So far, in just over a year, the bank has received more than 3.5 million applications through online channels, with an online automated processing rate of up to 85% (measured monthly) and decisions delivered to customers within three minutes.

The bank also integrated the approval process into its online application channels. The solution is truly multi-channel — people can apply for a credit card through mobile banking, WeChat, MMS, QR code, third-party apps, web portals and third-party websites.

China Minsheng Bank saw a rapid return-on-investment, with the FICO Blaze Advisor project up and running within six months.

“We wanted an improved experience for our customers. So we needed to change the traditional way of thinking, and use digital technologies to improve our response times and agility,” said Dr. Victor Yu, IT Department, Credit Card Center, China Minsheng Bank. “FICO’s solution helped us to transition from traditional face-to-face marketing and originations to an online system that yielded strong results and satisfied customers.”

This innovation saw China Minsheng Bank win a 2015 FICO Decision Management Award, judged by leading independent industry experts, for Customer Onboarding and Management.

The FICO Decision Management Awards honor companies that have achieved outstanding business results using FICO predictive analytics and decision management solutions. Winners will be featured in presentations at FICO World 2016 in Washington D.C., April 26-29. Thanks again to our award judges: Philip Alexander of the Financial Times; Joel Wells from Discover Card, Michael Versace from IDC and Michael Wu of Lithium Technologies.