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Shinsei Financial - Optimising credit lending strategies

Shinsei Financial Co, whose products include the 'Lake' brand personal loans, was founded in 1994 and is a market leader in the personal loans market in Japan. Headquartered in Tokyo and part of Shinsei Bank group company, Shinsei Financial Co offer a unique product line with services tailored to the lifestyle of customers.

In order to meet the complex challenges of providing innovative products and services, Shinsei Financial Co has deployed Experian's Marketswitch Optimization system for assigning customer credit limits and loan interest.

The system will be used for customer applying for Shinsei Financial's 'Lake' brand personal loans. It will provide support in response to new requirements under the revised Money Lending Business Law, helping Shinsei Financial increase revenue in the highly-competitive local consumer finance market.

Shinsei Financial's system will enable the company to use multiple variables including outstanding balance or sales targets, maximum cost, interest or credit lines for each customer. Marketswitch Optimization and its architecture will support decision processes that consider complicated sets of variables and virtually unlimited options. Experian's optimisation product identifies the best option rapidly and accurately from the vast array of rules and possibilities for every loan application.

Money Lending Business Law, revenue maximisation and operational cost reduction have become more important than ever and as such, Experian is providing a combined service to Japanese clients through the utilisation of Strategy Management Generation 3 and Marketswitch Optimization.

Akira Kawamura, Technology Director for Shinsei Financial's Decision, commented: "It is getting more complicated for us to make strategic decisions since the options generated by forecast figures or increasing rules have become numerous. With Marketswitch Optimization however, we are able to make decisions that make the most out of models and rules. Revenue per customer has significantly improved after deploying the optimisation strategy.

"Shinsei Financial is confident that we will be able to enhance our competitiveness and profitability by using Marketswitch Optimization along with Experian's Strategy Management product, even in the challenging market environment that is anticipated after the revised Money Lending Business Law comes into full effect."

Roger Williams, Senior Business Consultant for Experian's Decision Analytics division commented. "The take-up of Marketswitch Optimization has accelerated over the last 18 months and it's no surprise to me that organisations are, now more than ever, recognising the value of sophisticated decisioning."

"The software has a proven track record and is highly effective in a wide range of business areas including marketing, credit risk and collections. With a patented mathematical approach and user-friendly interface, Marketswitch Optimization produces effective strategies that maximise business performance. I would expect that the demand continue to grow as more and more organisations come to appreciate the tangible benefits that they can generate."

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