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Consum.it partners with Experian to optimise its automated decisioning system
“We managed to achieve our objectives thanks to the decisioning and analytics systems provided by Experian”
Consum.it is a Montepaschi Group company specialized in consumer credit, founded in 1999. In 2010 Consum.it has lent approximately 2.7€ billion of funds to consumers, between personal loans (1.4€ billion), credit cards (450€ million), car loans (400€ million), and other kind of consumer credit products. The flagship of the Montepaschi Group is the Monte dei Paschi di Siena Bank, the oldest banking institution in the world, operating since 1472, and the third largest bank in Italy.
Consum.it has partnered with Experian almost since the company began its operations, and recently this cooperation has expanded to enhance their automated credit assessment system, from originations to portfolio management, with some of Experian’s analytic solutions. The objective was to reduce operating costs and at the same time enhance the quality of their loan portfolio.
To know more about Consum.it and its relationship with Experian we interviewed Lorenzo Quirini, Head of Decisioning, Monitoring and Scoring of the Credit Department of Consum.it.
How has Experian helped Consum.it to improve its decisioning systems?
We have a long-standing relationship with Experian. It has been a partner of Consum.it practically since we started the company, and over time we have significantly expanded the use of Experian services, going from basic Credit Bureau solutions to sophisticated scoring models integrated into our decision-making systems, and from the originations phase to customer portfolio management.
Since the start of the current economic crisis we had the objectives of reducing operating costs and enhancing the quality of our loan portfolio, following the guidelines provided to us by our parent company. It was a difficult mission, but thanks to the analytics and automatic decision-making systems provided by Experian (Detect for fraud prevention, and Delphi and CDI for risk management), which we easily integrated with our decisioning system, we have managed to fully achieve our objectives.
Can you quantify the performance improvement resulting from the adoption of Experian solutions?
Out of more than 30,000 loan requests we receive each month, 75% are processed by completely automated decisioning systems. This means that the credit analyst must investigate only the remaining 25% of requests.
The adoption of Experian solutions, in parallel with other important actions such as the refinement of the decision criteria, synergies with the Montepaschi Group and improving the efficiency of automation, has helped to maintain a very competitive cost-income ratio of approximately 20%.
The ethical values of Consum.it are a key element of its mission. Has the adoption of Experian products enabled Consum.it to enhance its vision of responsible lending?
Yes, absolutely. The automation of decision-making eliminates any form of subjectivity by the operator, and an impartial process of acceptance, based on facts, is a big step forward in responsible lending. The constant monitoring of our loan portfolio goes in this direction too, since it allows us to verify in real time possible problems of over-indebtedness with other credit institutions.