Promsvyazbank uses SAS® to improve profitability, customer service
MOSCOW (Sep. 20, 2011) – Promsvyazbank (PSB) is using SAS Real-Time Decision Manager, to make loan decisions and provide personalized offers to borrowers, including some previously declined.
With SAS, the leader in business analytics software and services, PSB realized dynamic growth for its new retail loan portfolio and expanded its already loyal and reliable customer base. PSB raised consumer lending profitability while maintaining an acceptable level of risk, as evidenced by a 50 percent increase in credit efficiency ratio after SAS was implemented. Now, in response to market conditions and the economy, the bank can quickly change credit policies and serve customers in real time.
"Our retail business development strategy is based on serving each client as an individual," said Alexander Vasyutovich, Director of Financial and Retail Risk Management at PSB. "We offer individual customers different lending choices based on a risk profile obtained through a comprehensive analysis of socio-demographic and behavioral characteristics. Customers with good risk profiles can obtain lower interest rates, higher loans or a credit card in addition to the loan."
"This new solution is profitable for both the bank and for our customers," said Vasyutovich. "SAS' powerful analytics optimize lending strategies, helping improve customer service and profitability while quickly responding to changing economic circumstances. Now, we can actively increase our loan portfolio while managing risk."
SAS Real-Time Decision Manager helps PSB simultaneously handle hundreds of loan applications in real time. In a matter of minutes, the bank can form a personalized offer for each applicant based on data, including past bank transactions and various credit bureau data.
"Traditionally, bankers used SAS for offline analytical tasks such as modeling, statistical analysis and forecasting," said Julyi Goldberg, Director of the Financial Services Industry at SAS Russia/CIS. "Technological advances enable banks to make decisions quickly within days instead of months or weeks. The introduction of SAS Real-Time Decision Manager at PSB is the first of its kind in Russia. After only a few days, the project was already helping the bank's progress with its new customer service strategy."
OJSC Promsvyazbank, founded in 1995, is one of the leading privately-owned Russian banks, with total assets of RUB 485 bn, and total capital of RUB 59.7 bn under IFRS as of 1 July 2011. Holding company Promsvyaz Capital B. V. owns 72.93 percent of the Bank, Commerzbank Auslandsbanken Holding AG, a subsidiary of the second-largest German bank Commerzbank AG, has a 15.32 percent stake, and the European Bank for Reconstruction and Development owns the remaining 11.75 percent. PSB has the following international credit ratings: “Ba2” from Moody’s Investors Service; “BB-” from Fitch Ratings. As at 1 July 2011, PSB had a network of about 250 points of sale in Russia, as well as an overseas branch in Cyprus, and representative offices in China, India and Ukraine. To learn more, please visit http://eng.psbank.ru/.
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