LONDON – April 15, 2021 —
- Alfa-Bank, the largest universal privately owned bank in Russia, has used FICO® Decision Central™ to automate monitoring of its predictive models, to meet requirements from the Central Bank of Russia
- Automation of model monitoring has cut report preparation time by 90 percent and improved transparency
- Alfa-Bank has won the 2021 FICO® Decisions Award for Regulatory Compliance
Alfa-Bank, the largest universal privately owned bank in Russia, has used FICO® Decision Central™ to automate monitoring of its predictive models, in order to meet requirements from the Central Bank of Russia. The project has reduced report preparation time by more than 90 percent, created complete transparency into model performance and recommendations for improvement, and will help the bank qualify for an internal ratings-based (IRB) approach to Basel II, which should reduce the capital the bank needs to set aside on loans. For its achievements, Alfa-Bank has won the 2021 FICO® Decisions Award for Regulatory Compliance.
More information: https://www.fico.com/en/products/fico-decision-central
“Alfa-Bank is using more and more predictive models based on different data types,” said Vera Perevitskaya, head of the validation at Alfa-Bank. “Because of this, we implemented FICO Decision Central to make the monitoring of models more transparent and comfortable. We can now prepare the reports nearly two times faster and are fully compliant with Russian Central Bank regulation.”
Alfa-Bank also worked with FICO to develop a wide range of custom statistical and qualitative tests covering different types of models, including PD, EAD and LG, for retail and corporate business models, and special tests for low-default portfolios.
“Alfa-Bank has provided an excellent example of how model monitoring should be done,” said Nikhil Behl chief marketing officer at FICO. “This kind of work is absolutely critical, not just to meet regulations but to ensure the quality of the models that drive a bank’s lending decisions. As an economy changes — such as in the current pandemic — continuous validation of model performance is even more important.”
“Model maintenance or the model lifecycle is a very hot area in the world of analytics,” said David Dittmann, vice president, data & analytics, P&G and one of the FICO Decisions Awards judges. “I was impressed that Alfa Bank was pushing forward with new ways to think and manage the model lifecycle that addressed the top risk and compliance challenges.”
Alfa-Bank is the largest universal privately owned bank in Russia. It has been leading in all banking business segments for 30 years. Alfa-Bank serves more than 850 thousand corporate clients and 18.7 million retail customers. Alfa-Bank is developing according to the phygital model, combining digital innovation with an effective physical presence network, which has 498 retail offices in Moscow and Russian regions, 900 cities with courier delivery and 27,900 of its own and partner ATMs.
According to 2020 IFRS report overall assets of “Alfa-Bank” Banking group including ABH Financial, AO Alfa-Bank and financial subsidiaries is $61,9 bln., credit portfolio - $42,7 bln, shareholders’ equity $8,7 bln, net income $1347 mio.
About the FICO® Decisions Awards
The FICO Decisions Awards recognize organizations that are achieving remarkable success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based upon measurable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2021 judges are:
- Prasanna Dhoré, chief data & analytics officer, Equifax
- David Dittmann, vice president, data & analytics, P&G (2019 winner)
- René Javier Guzmán, market & liquidity risks director at Banreservas (2019 winner)
- Tomas Klinger, decision science and data director at Home Credit (2019 winner)
- Marcel Le Gouais, managing editor at Credit Strategy
- Tiffani Montez, banking analyst at Aite
- Lisa Morgan, journalist & analyst at InformationWeek
- Ignazio Provinzano, head of risk operations at Swisscard (2019 winner)
The winners of the FICO Decisions Awards will be spotlighted at and win tickets to FICO® World 2021, the Decisions Conference, November 2021 in Orlando, Florida.
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 195 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, manufacturing, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
Learn more at www.fico.com.
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