Decision Management
Real-time credit solution improves customer experience
Bradesco, one of the largest private banks in Brazil, has used FICO® Platform to create a digital, real-time, and complete credit solution that has revolutionized the customer journey with instant decisions and optimized pricing. Known internally as “Brain” (Bradesco Inteligência de Negócios / Bradesco Intelligence in Business), the decision management project has reduced the time taken to put projects into production and introduced more consumers into digital solutions, increasing digital transactions by more than 60 percent during the COVID19 lockdowns.
“Bradesco has a vision to deliver credit-as-a-service,” said Janaina Souza, head of consumer credit solutions at Bradesco. “We knew we could disrupt the Brazilian credit landscape if we could apply cutting-edge technologies to manage product, price and limit seamlessly and in real-time. By using FICO technology to automate the credit cycle, we have created a new and exciting experience for our customers and as a result have seen significant growth across our business.”
You can read more about this story in the full media release.
From six months to two days
Prior to the implementation, it could take up to six months to assign a consumer or SME customer a line of credit due to the high latency of Bradesco’s previous decision engine. Now customers can apply and receive access to a line of credit in just two days, which has increased both revenue and the number of credit users by around 15 percent.
“We knew that by harnessing the latest AI and advanced decision analytics we could create an experience that would beat customers’ expectations and ensure they were treated as an individual,” said Souza. “The primary challenge was to define the architectural approach that would meet the business goals and drivers and then bring together 16 different departments to collaborate on its delivery.”
Bradesco built “Brain” in Q3 2019 to connect all members of this multidisciplinary structure formed by 800 employees and contractors from about 28 vendors and consultancy firms to disrupt the status quo and foster the digital transformation the bank is pursuing.
At the centre of Bradesco’s “Brain” is the FICO® Platform - Decision Execution Capability and FICO Platform’s ability handle the required data for both batch and streaming.
Five guiding principals that guided the Bradesco team
The team’s aim to provide the best digital experience saw them focus on five distinct pillars that defined the development of each new offering.
- Customer journey: Unify and improve the customer experience across all channels.
- Integrated products: Integrate products guaranteeing customers the best credit offers according to their needs
- Real-time: Maintain a real-time information base to improve decision-making.
- Operational efficiency: Make changes without impacting the stability of the bank's critical environments and operations; simplify change processes.
- Optimization of prices and conditions: Maximize product profitability, improve credit offers, cost and benefits.
In 2021, new features were incorporated into Brain. For example, when a customer makes an instant payment and doesn’t have all the necessary funds available in their account, the Brain solution check’s their credit limit and ensures the additional credit is provided to complete the transaction.
New features deliver significant benefits
Bradesco has also made significant changes to the way that customers can restructure or reorganize existing loans and renegotiate new terms for loans.
The results of the Brain project have been significant. Bradesco has increased credit delivered by 55 percent, the renegotiation rate has grown by 22 percent and bad debt has fallen by 41 percent.
Bradesco have integrated customer journeys, processes, pricing and credit using analytically driven real-time FICO technology. The drive to look at every interaction from the point-of-view of the customer is clearly a winning approach.
For its achievements, Bradesco won a 2022 FICO® Decisions Award for customer onboarding & management.
“I was really impressed with the use of high-end analytics at the back-end to provide this service at Bradesco and the organisational structure with which they executed this,” said Sidhartha Dash, research director at Chartis and one of the FICO Decisions Awards judges. “The scale of the undertaking was not to be underestimated, especially during the conditions of the pandemic.”
How FICO Platform Decisions Capability Can Deliver Real-Time Digital Credit Offerings
- Discover the power of FICO Platform to help you drive greater value from lending strategies.
- Learn more about the five pillars of a Decision Management Platform and why they are so important.
- Find out how Bareservas, the largest bank in the Dominican Republic has centralized and automated its credit origination processes enabling it to assess 80 percent of its loans automatically, increase loans processed by 30 percent and offer up-sells to 47 percent of approved applicants.
