Banking

Zero Error Credit Card Allotment Process

About the Client
The client is India’s second-largest bank with total assets exceeding US $80 billion, and with a network of over 2,000 branches and presence in 18 countries. It offers a wide range of banking products and financial services to corporate and retail customers and has subsidiaries involved in investment banking, life and non-life insurance, venture capital and asset management.

Customer Pain Points
The Bank was looking for De-dupe solution that enables customer exposure in real-time and efficient credit scoring during the credit card allotment process.

De-dupe involves matching logic that identifies an applicant who had applied earlier for a credit card. Additionally, the Bank’s credit card issuance process involves evaluating credit worthiness of the applicant based on a number of market driven parameters and standardized processes.

To make the credit decision making system effective and efficient, it interfaces with various systems and external agencies.

Another challenge faced was the existing solution, which was inefficient when it came to matching variations in applicants, and yet consumed expensive infrastructure resources. The Bank wanted a more robust, flexible and dynamic system that could be parameterized, with no vendor involvement for configuration.

Posidex Solution
The Bank selected PrimeMatch® based Data Management Solution after a thorough evaluation process and benchmarking the product with leading MNC vendors. Tighter integration with Posidex De-dupe and Bank’s Rule Engine for scoring allowed parameterization and better user control. Flexible GUI options allowed the Bank for rapid changes in parameters to keep up with market dynamics and changes in policy decisions.

Results

In their older De-dupe setup, 90% of the applications were having an average of 1-2 matches per application, while with POSIDEX, 85% of the applications were seen to have close to 1-10 matches per applicant resulting in saving running into millions of dollars per annum.

Further, the Bank applied Posidex solutions for its multiple purposes such as checking of the retail loan applications against the defaulters database, integration within core lending system for customer exposure identifying common borrowers during Merger and Acquisition etc.

The Bank nominated POSIDEX solution to the PCQUEST magazine’s “Best IT Implementations Of The Year” award.

  • Perform bulk de-duplication of the entire customer databases in three core systems and re-building a single source Customer Master Data from the ground up
  • Analyze cluster that were categorized into confirmed clusters and less probable clusters. Verification of the less probable clusters with least manpower. And finalize customer master, on time and on budget
  • Process daily volumes generating Single View of the Customer by End Of Day
  • Easily match any external data for regulatory purposes. If desired, real-time query capability could be integrated seamlessly
  • The Bank is now able to quickly implement its KYC process effectively fully meeting its risk and compliance requirements