Fico, the leading provider of analytics and decision management technology, today announced the successful completion of an assignment project with China Minsheng Banking Corp., Ltd., to help strengthen the bank's small and micro business loan portfolio and ensure Basel II compliance.
The project entailed the development of robust risk models covering every phase of the retail lending lifecycle, as well as an analytics-powered risk management system to help meet Basel II requirements.
As outlined in a newly published case study, micro and small enterprises are an important strategic market for Minsheng Bank, but pose major challenges in the effective management of credit risk. With more than 640,000 such accounts across China, the bank needed a more efficient means of assessing risk quickly. The FICO team worked with the bank to develop and implement scoring models that will enable the bank to make accurate and consistent evaluations of credit risk at every stage from application through collection, and ultimately grow its portfolio more profitably. The models can also support the bank's retail credit card and consumer loan business. At the same time, FICO helped develop a system that will improve the bank's ability to quantify and control risk, as called for by the Basel II accord and China's central banking regulators.
"Both Minsheng Bank and FICO are very pleased by the results of our cooperation," said Zhao Jicheng, the bank's general manager of Risk Management. "The FICO team demonstrated outstanding professionalism and technical proficiency, as well as a rigorous work attitude and strong project management."