Transforming credit card issuance for India’s 2nd largest bank

Like our client, every bank faces critical challenges during the credit card allotment process. Achieving a seamless balance between speed, accuracy, and compliance often proves difficult.

Duplicate submissions—whether multiple applications from the same applicant or earlier submissions from existing customers—often go undetected. It leads to inefficiencies and, worse, poor customer experience. Real-time credit scoring is just as essential. So, banks can evaluate applications dynamically without making the customer wait. Yet many systems fall short.

Fraud mitigation further complicates the process as legacy systems struggle to accurately identify fraudulent or erroneous applications. Additionally, rigid, legacy systems lack the flexibility to handle variations in applicant data. They consume costly infrastructure resources without delivering desired results.

Further, the credit worthiness of an applicant is evaluated based on many market-driven parameters and standardized processes. This meant the decision-making system of the bank had to interface with external agencies and multiple other systems. Without such a system in place, credit card allotment was inefficient, error-prone, and costly.

‍

What India’s second-largest bank needed was a robust, flexible, and scalable system capable of transforming the credit card issuance process. The bank benchmarked many solutions from global leaders and finally selected Posidex.

We implemented a cutting-edge platform designed to optimize deduplication and streamline decision-making processes.

• Seamless Integration: The solution was tightly integrated with the bank’s rule engine for credit scoring, ensuring better parameterization and enabling user control over critical decisions.
• Flexible Configuration: With an intuitive user interface, the system empowered the bank to adapt to market dynamics and policy changes without external vendor intervention.
• Enhanced Deduplication: The solution’s superior matching logic enabled the identification of duplicate applications with unparalleled accuracy.

‍

Our proprietary AI/ML-powered solution was recognized as one of the “Best IT Implementations of the Year” by PCQUEST in 2009 due to its innovation. It brought significant operational and financial benefits to the bank:

• Operational Efficiency: Processing speeds improved 10 times with minimal hardware requirements, allowing for faster approvals and declines.
• Massive Cost Savings: The deduplication system identified 1-10 matches per application for 85% of applications the bank used. It was an eye-watering improvement over the previous average, which was 1-2 matches for 90% of applications. This optimization resulted in estimated savings of USD $5–10 million annually.
• Versatile Application: Beyond credit card issuance, the solution was leveraged for various purposes, including checking defaulters’ databases for retail loans, monitoring customer exposure, and identifying common borrowers during mergers and acquisitions.

Success in their own words

"This implementation resulted in an average deduplication percentage of 47%, compared to 21% with the older logic. The total estimated savings will be USD $5 million annually with a 5% increase in approval and decline rates, and USD $10 million annually with a 10% increase. Processing speeds improved nearly tenfold, all with minimal hardware requirements."

— Assistant General Manager

‍

With Posidex, India’s 2^nd largest bank doubled its accuracy while approving credit card allotments. The enhanced process efficiency translated into faster issuance and improved customer satisfaction, positioning the bank as a leader in innovative financial services.