The fourth edition of the Moscow Credit Risk Seminar held by Experian Decision Analytics took place at the beginning of December. Over 150 managers from key financial organisations from Russia, Kazakhastan, Ukraine, Moldova and Japan gathered to learn, with great interest, about successful credit risk strategies followed by leading organisations from around the World and CIS, such as Toyota, Alliance Bank (Kazakhstan) and VTB24 with the support of Experian´s expertise.

The event demonstrated best practices to achieve truly effective and profitable credit risk management from the first decision, when a financial institution receives an application, to improvements in managing the customer in a proactive way.

Daniel Zelenski, Head of Russia and CIS, Decision Analytics, Experian (pictured above) , said “The interest that this event generates every year is a good indicator of the increasingly high importance that effective management of credit risk has for financial institutions in Russia and other countries. Experian Decision Analytics’ Credit Risk Seminar has become the reference for all managers in the sector to learn more about best practices and to share knowledge and experiences with their peers.”

Vasily Dubov, General Director of the Experian-Interfax Bureau, pointed out that the first step in making an accurate decision on the customer is having a good credit history of the applicant. In this sense, the establishment of the credit bureaux in Russia has been “one of the most positive factors to foster the economic growth of this country - as the World Bank has recognised”. This development has put Russia on a comparable level with other countries, in some of which credit bureaux have been operating for decades. Dubov added: “Since its creation in 2004, the Experian-Interfax credit bureau has dealt with 190 clients, over 2.3 million credit histories and over 2 million processed requests and automated reports.”

With a complete picture of the applicant, the next step is to rely on the right solutions to a make fast and accurate risk decision. With Experian’s solutions and consultancy services, any organisation can meet its challenges within tough deadlines.

Toyota Bank in Russia is a good example of successful credit risk management. Sergey Tarakanov, Head of Retail Department ZAO Toyota Bank, demonstrated that thanks to the implementation of Experian’s Acquire SM, the organisation “was able to easily integrate the bank’s methods into Experian´s solution, resulting in an operational system that enabled the bank to process applications in real-time in order to quickly assess the risk level of applicants and provide customers with an immediate decision in an efficient and cost-effective way”.

Alexey Zhukov, Director of Retail Risks at Alliance Bank from Kazakhstan, described external data sources available in Kazakhstan and their implementation in credit risk evaluation and controls procedures. He explained how "the bank has achieved a substantial competitive edge in creating a high quality portfolio due to the development of effective risk evaluation methods with Experian´s Strategy Management". Strategy Management allows any organisation to improve risk management decisions on customers as they apply for new accounts as well as to manage all consumer or business data available. Moreover, the implementation of Experian’s Hunter software helped the bank to automate a fraud detection and prevention management system that has had a direct impact on data validation and the bank’s referrals rate.

The session concluded with one-to-one meetings in which attendees could discuss with experts from Experian´s Decision Analytics division how to customise solutions to meet their own organisation’s requirements and make full use of their advantages to ensure growth in profitability, effective risk management, prevention of fraud by borrowers and a reduction of operational costs.

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