GXS Bank Achieves Remarkable Onboarding Efficiency Using FICO Platform
GXS Bank, a digital bank in Singapore, has significantly improved its onboarding efficiency using the FICO Platform, allowing for credit decisions in milliseconds and loan approvals in under three minutes. Leveraging alternative data from ecosystem partners like Grab and Singtel, GXS extends credit to applicants with credit history. This implementation took just three months and led to GXS winning the 2024 FICO Decisions Award for Customer Onboarding & Management. The bank aims to use FICO's capabilities for future credit products across Southeast Asia.
- GXS Bank has reduced onboarding time to under three minutes for the majority of customers.
- The FICO Platform enables credit decisions in milliseconds, enhancing efficiency.
- The implementation of the FICO Platform was completed in a swift three months.
- GXS Bank won the 2024 FICO Decisions Award for Customer Onboarding & Management.
- Leveraging alternative data sources, GXS extends credit to underserved users.
- GXS Bank plans to deploy FICO Platform capabilities for upcoming credit products in Malaysia and Indonesia.
- The use of ecosystem data from Grab and Singtel enhances credit assessments and personalized interest rates.
- Increased reliance on alternative data sources could pose privacy concerns.
- The rapid implementation and scaling might introduce unforeseen operational risks.
- The success of using FICO's platform heavily depends on the continued cooperation with ecosystem partners like Grab and Singtel.
- Potential overextension in credit provision to users with credit history could impact the bank’s risk profile.
Insights
GXS Bank's adoption of the FICO Platform has allowed the bank to significantly streamline its credit decision-making process. This is particularly impactful because it enables the bank to extend credit to a broader audience, including individuals with thin or no credit history. From a financial standpoint, this could lead to an increase in loan origination, thus potentially boosting the bank's revenue. However, the downside lies in the credit risk associated with these new types of borrowers. While the use of diverse datasets, including those from Grab and Singtel, helps mitigate some risk, the effectiveness of these measures will be critical to observe over time.
For retail investors, this development signifies GXS Bank’s strong commitment to growth and innovation, which could lead to an improved market position. In the short term, the operational efficiency gains and rapid credit decision-making will likely attract more customers, enhancing the bank's competitive edge. Conversely, the long-term success hinges on how well the bank manages the credit risk of these new customer segments.
From a technological perspective, the implementation of the FICO Platform in just three months is a remarkable feat. This rapid deployment is particularly noteworthy given the traditional timelines of up to a year for on-premises solutions. The platform's ability to integrate alternative data sources and execute credit decisions in milliseconds is a significant technological advancement. This not only enhances operational efficiency but also provides more accurate and personalized evaluations of borrowers.
For investors, this agility and adaptability signal GXS Bank's potential for future innovation. The bank’s capability to quickly iterate and deploy new credit products across different regions, as mentioned for upcoming projects in Malaysia and Indonesia, shows a strong technological backbone. In the context of digital banking, where speed and efficiency are paramount, this positions GXS Bank favorably in a competitive market.
The use of the FICO Platform allows GXS Bank to tap into underserved markets, notably those with thin or no credit history. This move is important in a region like Southeast Asia, where many individuals do not have access to traditional banking services. The integration of alternative data from ecosystem partners like Grab and Singtel provides a more comprehensive view of potential borrowers, thus enhancing financial inclusion.
The strategic partnership with prominent regional players like Grab and Singtel not only broadens GXS Bank's customer base but also strengthens its market position. For investors, this reflects positively on GXS Bank’s market expansion strategy and its potential for customer acquisition. However, the bank needs to closely monitor the performance and repayment behavior of these new segments to ensure sustainable growth.
Singaporean challenger bank successfully onboards vast majority of customers in less than 3 minutes
Highlights:
- GXS Bank is using FICO® Platform to make credit decisions in milliseconds and issue loans in under 3 minutes upon approval, for vast majority of customers
- GXS Bank is leveraging alternative data and FICO Platform’s Intelligent Decisions capabilities to extend credit to applicants with thin to no credit history
- The implementation of FICO® Platform took just three months to complete
- GXS Bank has won a 2024 FICO® Decisions Award for Customer Onboarding & Management
GXS Bank (GXS), Singapore’s first digital bank for consumers and businesses, is using the industry-leading capabilities of FICO® Platform to streamline its onboarding process for GXS FlexiLoan, its personal loan product. This has resulted in an onboarding time of under three minutes for the vast majority of approved GXS FlexiLoan applications.
GXS uses FICO Platform to automatically generate credit decisions in milliseconds, executing complex policy rules that utilise traditional and alternative data, to provide loans to a wider pool of consumers without compromising the bank’s credit risk appetite.
GXS leverages user-permission data from its ecosystem partners, Grab and Singtel, to expand credit access to underserved users. Utilizing data from 'super app’ Grab, a dominant force in
Thanks to this innovative approach, individuals previously overlooked by traditional banks—such as those starting their careers or entrepreneurs with fluctuating incomes—can now secure loans.
“Digital banks play an important role in extending banking and credit facilities to a large and underserved group of individuals and small businesses across Southeast Asia,” said Vaman Sriraman, Group Chief Risk Officer at GXS Bank. “FICO has been an invaluable partner for us in our bid to drive financial inclusion in
More information: https://www.fico.com/en/solutions/account-opening
Agility and Adaptability: Empowering Innovation in Digital Banking
“Introducing GXS FlexiLoan exemplifies our commitment to pioneering customer-centric solutions in the digital banking realm,” added Sriraman. “The implementation of FICO Platform in just three months was nothing short of remarkable, especially when considering the traditional timelines of up to a year for other providers’ on-premises solutions.”
FICO Platform capabilities will be deployed for upcoming credit products in
“FICO Platform plays a pivotal role in advancing financial inclusion by enabling banks like GXS to leverage alternative data sources and streamline credit decisioning processes,” said Nikhil Behl, EVP of sales and chief marketing officer at FICO. “Moreover, the implementation of the FICO Platform in just three months is a testament to our dedication to delivering tangible, rapid value to our clients.”
As a digital-only bank, GXS recognises the paramount importance of agility and efficiency in its operational processes. The imperative to swiftly go-live while upholding stringent risk controls posed a challenge. With the FICO Platform, GXS has been able to configure and deploy risk policies with remarkable speed and precision, utilising advanced analytics, rule design, and flow orchestration.
For its achievements, GXS Bank won a 2024 FICO® Decisions Award for Customer Onboarding & Management.
“The ability to architect scalable solutions while maintaining unprecedented speed is what impressed the judges with GXS Bank,” said Paul Mah, senior editor at CDO Trends and one of the FICO Decisions Awards judges. “GXS Bank’s commitment to excellence and customer satisfaction allowed it to extend credit access to underserved segments of the population, fostering economic empowerment and creating opportunities for individuals who may have previously been excluded from traditional banking services.”
To see the full list of 2024 FICO Decisions Awards winners, check out: https://www.fico.com/en/decisionsawards.
About GXS
GXS Bank (GXS) is a digital bank with a relentless focus to make banking better for the everyday consumer and small business. This includes Singapore’s underserved individuals and businesses.
The Bank aims to improve financial inclusion and to drive financial revolution for its customers through the secure and ethical use of technology and data.
GXS holds a banking licence issued by the Monetary Authority of
It is backed by a consortium consisting of Grab Holdings Inc. – Southeast Asia’s leading super app, and Singtel – Asia’s leading communications technology group. GXS is a separate entity and is not associated with the businesses of Grab Holdings, Singtel and their entities. GXS is also not associated with or related to the businesses of FICO or its entities.
About the FICO® Decisions Awards
The FICO Decisions Awards recognize organisations that are achieving remarkable success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based upon measurable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2024 judges are:
- Andrew Birmingham, editor, Mi3
- Eric Kavanagh, CEO Bloor Group and host, InsideAnalysis
- Elizabeth Lumley, deputy editor, The Banker
- Paul Mah, senior editor, CDO Trends
- Laura Martins, editor, IT Forum
- Paul Robinson, VP credit management at Canadian Tire Bank (previous winner)
- Shiv Sehgal, EVP audience analytics at RSG Media (previous winner)
- Nick Vitchev, director at Chartis
The winners of the FICO Decisions Awards were spotlighted at and won tickets to FICO® World 2024, April 15 – April 18, 2024 in
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by
View source version on businesswire.com: https://www.businesswire.com/news/home/20240529969454/en/
Neil Mirano
RICE for FICO
+65 3157 5680
neil.mirano@ricecomms.com
Saxon Shirley
FICO
+65 9171 0965
saxonshirley@fico.com
Source: FICO
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