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 With steady economic growth and falling interest rates, there has been a credit upsurge in Turkey. Strong competition amongst lenders in this demographically young market has led to mergers and acquisitions and an increased focus on product innovation and managing risk and profitability.
Garanti Bank has made the most of the market opportunities, seeing rapid growth and customer numbers increasing by 100% in the last four years through expansion and innovation in products and distribution. Accepted applications have increased from 11,000 in 2002 to over 350,000 today. In addition to this, Garanti Bank has been recognised as Turkey’s best Internet bank as well as supporting more than 580 branches and handling more than 5.5 million calls a month through our call centre.
The growth in customers, channels and products has put pressure on systems and policies that have been in place for a number of years. These changes, in combination with organisational requirements to integrate Basel II, GE practices and processes, and implement enterprise wide decisioning, prompted us to review our origination processes and systems, knowing that we could improve our efficiency and effectiveness.
Having worked with Experian and its local Decision Analytics team in Turkey for a number of years, we were aware of their strong experience and commitment to our marketplace. Having already used the New Business SM solution to automate and manage lending decisions, they were our preferred choice for the new project.
The upgraded New Business SM system is used to automate decisions for credit cards, consumer loans and SME lending, automatically calculating scores and executing policy decisions, and implementing employment checks, documentation and appraisals before deciding the terms and limits for the final decision. It has reduced the need for manual intervention and brings together the bank’s origination systems and strategies into one streamlined solution. The system enables us to manage product proliferation and roll out new lending policies rapidly through the flexible Strategy Management tool.
"The credit risk team now has access to tools which offer enhanced flexibility and control over the strategies and lending policies..."
The speed and efficiency of the decision automation has been improved with the upgrade of the technology to the next generation of Strategy Management. It has enabled the deployment of multiple decision engines across the organisation at every decision point.
The credit risk team now has access to tools which offer enhanced flexibility and control over the strategies and lending policies. This has supported the project to roll out global GE practices and integrate the origination systems and processes with the collections and fraud systems for enterprise wide decisioning.
As part of the project, Experian also developed new application scorecards for credit risk, automotive and housing loans, overdrafts and SME lending, which are implemented through the system.
The data universe in the system has also been expanded to support more thorough and accurate reporting through the Portfolio Reporting Studio tool and build even better scorecards in the future. Using this additional information, we can use the integrated analytical environment to formulate new and improved origination decisions and test them using Champion/Challenger functionality before deployment into the operational environment.
The project is continuing with the aim of fully automating origination across the organisation. In addition, we are planning decision automation in marketing, customer management and collections as well as enterprise-wide fraud protection.
Dr Ömer Faruk Alış
Technical Architect
Garanti Bank
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