China Minsheng Bank has created an online credit card application decision program that allows customers to apply using either online or mobile channels and receive an instant approval decision.
Since implementing the FICO solution, a little over a year ago, the bank has received over 3.5 million applications for credit cards with a monthly activation rate of up to 85%
Credit card approval decisions are made within three minutes, and credit cards delivered within five days. The same process used to take at least a month using offline methods.
China Minsheng Bank has won a 2015 FICO Decision Management Award, which is judged by leading independent industry experts, for Online Credit Card Customer Onboarding and Management.
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 approval rates of up to 85% (measured monthly) and decisions delivered to customers within three minutes.
The bank wanted to take advantage of the consumer trend in China towards e-services and grow its market share of 20 million credit cards by automating its approval process. The bank also integrated this approval process into its online application channels. China Minsheng Bank saw a rapid return-on-investment, with the FICO Blaze Advisor project up and running within six months.
The solution is truly multi-channel — people can apply through mobile banking, WeChat, MMS, QR code, third-party apps, web portals and third-party websites.
The resulting data is analyzed against a scoring model built with the use of valuable external structured data. The model uses FICO and third-party platforms to collect information on an applicant’s transactions and consumption behavior. This allows the origination and underwriting process to be flexible and proactive.
For China Minsheng Bank, this was critical, as the bank was observing that the traditional ‘offline’ business model was no longer effective in reaching a large customer base, quickly assessing credit ratings, increasing operational efficiency and improving customer experience.
The China Financial Certification Authority expects that mobile banking customers will account for around 24 percent of the total e-banking users in 2015, and that 40 percent of those will buy financial products through their smartphones.
For a complete archive of more than 60,000 articles published since 1995 search the CardFlash.com library.