Quick facts
Industry: Banking
Bendigo and Adelaide bank is Australia's fifth largest retail bank, with more than 7,200 staff helping our 1.6 million customers to achieve their financial goals. Bendigo and Adelaide Bank has assets under management of more than $65.7 billion and market capitalisation of around $4.6 billion. Visit its website at www.bendigoadelaide.com.au.
How it uses SAS® Credit Risk Management
Technologies: SAS Credit Scoring for Banking, SAS Regulatory Risk Management
With the merger between Bendigo Bank and Adelaide Bank, there were disparate systems that needed to be integrated to provide a trusted source of information.predict the probability of citizens becoming dependent in the future.
Managing data enhances the ability to offer new products and services without increasing risk.
- Delivering reliable risk information quickly ensures the opportunity to offer a new rate or product is given in a timely manner.
- Ensuring the integrity of information accuracy reduces the risk of offering a new banking product. The ability to manage data has meant that new products are offered without increasing risk.
- Migrating loan portfolio and credit risk asset data to one platform allows business units to access the information to create new products, engage existing customers and attract new customers.
SAS® helped Bendigo and Adelaide Bank to provide excellent rates and product.
- By analyzing its big data, MSD learned more about who needed social services – and then created a plan to address those needs.
- New Zealanders are becoming less reliant on the welfare system: Benefit figures are at a five-year low, with projected savings of $1 billion over four years.
- Employment increased 9.3 percent for young adults.
- 8,000 single parents came off benefit, representing a 9.4 percent drop.
SAS® technology became an integral tool for new insights into risk.
SAS® Credit Scoring for Banking
We've combined our award-winning data management, analytic and reporting capabilities to provide a powerful in-house credit scoring solution that lets you develop, validate, deploy and track credit scorecards faster, cheaper and more flexibly than any outsourcing alternative.
SAS® Regulatory Risk Management
A transparent framework and integrated data aggregation, analytics and reporting capabilities provide an open, flexible and extensible means of measuring and managing regulatory risk in a constantly changing regulatory environment.
Managing risk to move faster in the marketplace
Bendigo and Adelaide Bank better positioned to provide excellent rates and products using SAS® Credit Risk Management solutions
Offering any new banking product, or even a new rate, involves a degree of risk. Taso Corolis will tell you that managing data enhances the ability to offer new products and services without increasing risk.
As Head of Risk Analytics at Bendigo and Adelaide Bank, Corolis’ role is to deliver reliable risk information quickly. If it takes too long to calculate risk, the opportunity to offer a new rate or product might evaporate. “So getting the right balance between integrity of
information accuracy and speed is paramount,” he explains.
Getting that balance right was becoming increasingly difficult, as the bank did not have its credit risk data in one place. Bendigo and Adelaide Bank is the result of multiple mergers over several years. “As you’d expect there were some disparate systems and disparate databases,” Corolis says.
“We previously had less than 40 percent of any portfolio on one system,” says Corolis, noting that it led to added costs for maintenance along with lost opportunities. “We needed highly trusted information that we could access quickly, without worrying about the integrity, reliability or timeliness of it.”
Seeking help from a trusted source
Bendigo and Adelaide Bank chose SAS Credit Risk Management solutions to add to the existing SAS solutions already in place at the bank for other components of risk. “We’re driving the whole credit modeling, credit reporting and credit analytics process in one solution,” Corolis says, adding, “We’ve the confidence that information is in there. It’s in the common language. It aligns with our data governance expectations and requirements. So there’s no concern or risk attached to that. We know that the governance, the model build and the model development life cycle is consistent regardless of what the end use of that model is. Data is consistent. It is aligned.”
We needed highly trusted information that we could access quickly, without worrying about the integrity, reliability or timeliness of it.
Taso Corolis • Head of Risk Analytics
New insights into risk
Within a few months of acquiring the solution, Bendigo and Adelaide Bank was able to move 80 percent of the data involving the bank’s loan portfolio and credit risk assets into the platform. The bank organized the platform to allow business units to access the information to create new products, engage existing customers and attract new customers.
In addition, the solution is providing confirmation about the bank’s approach toward managing risk with solid data. “We can prove our views,” Corolis says. And it is less expensive. Just having most of the data in one system (eventually all of it will be) reduces errors, omissions and maintenance costs. “There’s a tremendous uplift in that piece alone,” he adds.
Managing risk is more than just staying in the regulators’ good graces; it gives the bank the opportunity to provide excellent rates and innovative products to its customers. “It helps us fulfill our promise to our customers,” Corolis says. “We can spend more time looking forward, than looking over our shoulder.”