Credit Line optimization and digitalization in the Retail & SME space
Dejan Donev and Jiří Nosál Summary
Digitalization is not just electronic version of processes and shortening time to cash from days to minutes. Digitalization should lead into much simpler, cheaper and efficient processes and instant access to loan at any place and time. Using advanced analytical approaches which can answer questions like how much your customers really earn, or what loan size they need and price they would like to pay, allows you to make desired loan (optimal offer) ready and approved before your customer even considers asking for it. Using this approach, many banks have experienced double digit growth of the business even on saturated markets while still keeping risk costs stable or even lowering them. Credit line optimization and digitalization can be also your answer to the FintTech competition as it increases the overall efficiency and customer satisfaction.