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Promsvyazbank: Enhancing business flexibility for leading Russian lender


Promsvyazbank is one of Russia’s leading lenders, offering loans and credit cards to more than 370,000 customers through a network of 240 branches. The recent difficult financial environment has created challenges in the market with access to credit falling, rising unemployment and a rise in non-performing loans.


“As a forward-looking organisation we wanted to look past the challenging economic conditions to our future growth. Experian’s Business Review has enabled us to identify where we can maximise new business performance with sophisticated, marketleading decision making".
Irina Gradovich, Head of Retail lending at Promsvyazbank


The business challenge

In this difficult financial climate Promsvyazbank is focused on preventing significant growth in delinquencies and ensuring the profitability of its lending business. It wanted to ensure the business was in a strong position for growth when the economy started to improve. A key area of the Bank’s review and consideration was the origination process. It had identified a number of requirements to enable it to achieve its business objectives:

  • The need for centralised underwriting and decisioning
  • Risk assessment with predictive scoring
  • Internal and external data retrieval and usage
  • Verifying the identity of applicants
  • Minimising application processing times

The client recognised that an external perspective of its origination business would provide insight into how its systems and processes compared to leading practice.

Decision Analytics answer

Promsvyazbank recognised that Experian could bring an external viewpoint and global experience to the business. It engaged with Experian to carry out its Business Review of existing and planned origination decisioning capabilities and processes. Experian Business Review included discussions with key stakeholders throughout the business. It carried out an objective assessment of the processes, strategies and decisionmaking systems and benchmarked them against leading practices. This assessment was used to deliver recommendations for improvements as part of an operational and strategic roadmap to best practice.

Potential benefits identified

  • Improve efficiency with a more streamlined origination process
  • Control bad debt with increased accuracy of risk and lending decisions
  • Achieve flexibility and business control with the strategy development process in the hands of the business users
  • Minimise application processing time with a rapid and robust process
  • Capitalise on growth opportunities when appropriate with systems and processes in place to effectively manage risk
  • Reduce fraud and comply with identity requirements with ind-epth verification

The Business Review

Experian adopts a proven, standard methodology for its consulting reviews, which ensures the highest standard to maximise insight. The review considered all the documentation throughout the origination process. Experian worked with the client to complete a detailed questionnaire which considered all aspects of origination, customer decisioning, strategies, decision support architecture and MIS. On-site meetings included key stakeholders throughout the business, including the sponsors of the review. Detailed analysis was carried out across all key operational and strategic areas within the originations function in order to create the appropriate benchmark assessment.

The final report

The final report summarised the situational analysis carried out during the evaluation and benchmarking of the existing and planned capabilities against leading practice. The key findings included:

  • The origination process is welldefined and makes good use of internal and external data
  • The absence of underwriting guidelines allows potential for subjectivity and inconsistency in the decision making
  • Heavy reliance on IT for strategy changes restrict the client’s ability to rapidly react to market changes
  • Current capabilities do not facilitate risk based pricing

The report highlighted the areas of opportunity for improvement, broken into quick wins and longer term initiatives. The recommendations included:

  • Review of underwriting and verification to streamline processes
  • Develop affordability calculations and up-sell strategies to ensure readiness for a return to growth
  • Implement a sophisticated business rules engine to give more control to the business users
  • Implement staged data capture and decisioning including early risk assessment and data enrichment strategy

The roadmap provides Promsvyazbank with a clear strategic direction and, coupled with the details that underpin every initiative identified, will enable a full programme of work to be implemented.

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