China Guangfa Bank Credit Card Center (CGB Credit Card Center) is using FICO® Customer Communication Services (CCS) to help reduce its cost of collections and improve customer service across its credit card portfolio of 50 million customers.
The business unit has managed to improve the average daily rate of repayment by 2 percent and has collected several hundred million yuan in repayments using the FICO solution. The use of this solution has also resulted in a significant lift in customer satisfaction levels for CGB Credit Card Center. Since the project was launched, the number of complaints the bank receives has dropped to one-tenth of when they were running manual collections.
The success of the project has earned CGB Credit Card Center an award from The Asian Banker for ‘Best Self-Service Banking Project in China’.
“CGB Credit Card Center has been at the forefront of automated collections for banking in China for many years,” said Mr. Lin Deming, General Manager of CGB Credit Card. “The CGB Credit Card Center was first to deploy an intelligent collection robot in China. Now with the help of FICO we are applying flexible machine learning and an optimized calling and communications strategy to the business, which has created great efficiencies. Our recovery rate is up, our costs are down and we have seen a reduction in our complaints. This marriage of ‘finance + technology’ has been a remarkable development for CGB’s credit card business, helping us hit a volume of more than 50 million customers with a portfolio credit balance exceeding RMB 300 billion. It is a good example of a project that builds on China’s national strategy of fintech innovation and provides cardholders and consumers with a creative and positive banking experience.”
The deployment of FICO® Customer Communications Services has been the key technology implemented by CGB Credit Card Center as part of its Intelligent Collections Project, which aims to increase automation within its collections function. CGB Credit Card Center now uses differentiated collection strategies for existing credit card customers and has implemented a segmentation-based approach, based on customer risk, products and preferences.