Turkey's Akbank Will Use FICO Optimization to Build Value in Credit Card Portfolio
FICO has been selected by Akbank to enhance its consumer credit card limit decisions, aiming to optimize their portfolio management. This initiative includes training Akbank's team in optimization methodologies and developing sophisticated action-effect models for retail lending. Akbank plans to establish an optimization center of excellence, utilizing FICO's Decision Optimizer technology to improve profitability and reduce non-performing loans. The move highlights Akbank's strategy to leverage advanced analytics for financial decision-making.
- Akbank selected FICO to optimize credit card limit decisions, enhancing portfolio management.
- FICO will train Akbank's in-house team, promoting self-sufficiency in optimization applications.
- Establishment of an optimization center of excellence at Akbank to drive efficiency.
- FICO's technology aims to improve Akbank's profitability and decrease non-performing loans.
- None.
ISTANBUL, Nov. 17, 2020 /PRNewswire/ --
Highlights
- After a competitive search, Akbank chose FICO to optimize its consumer credit card limit decisions for new and existing customers.
- Akbank also plans to use the same optimization technologies in solving different problems such as setting loan amount and price, and customer credit limits
- FICO is also working to futureproof the bank's risk management growth by training in-house Akbank team on the optimization methodologies and action-effect modelling.
- Akbank's strategy is to establish an optimization centre of excellence.
Global analytics and decision management provider FICO is providing decision optimization software to manage the growing consumer credit card portfolio for one of the biggest Turkish retail banks, Akbank.
More information: https://www.fico.com/en/products/fico-decision-optimizer
FICO has a global pedigree in credit limit management optimization projects, and many of the world's leading financial institutions use its optimization technology. Akbank will tap into this depth of experience to create an optimization centre of excellence. Akbank has tasked FICO to train an in-house team so they can build their own applications for other areas, such as loan amount and pricing optimization, customer-based limit optimization and restructuring optimization.
FICO will configure and develop sophisticated "action-effect" models for Akbank's retail lending team using FICO® Decision Optimizer to manage their initial credit limit assignment and the on-going limits for Akbank's consumer credit card portfolio. The action-effect models project customer responses to offers in order to determine the best offer for each customer. These will be configured into the optimization framework, allowing the Akbank team to choose an operating point that meets their objectives and constraints.
Serhan Pak, Akbank's senior vice president, Retail Lending, said: "We view optimization as a strategic tool for Akbank, as we build on excellence in credit analytics to reach our strategic goals. The robustness of FICO's analytic technology and the fact that their optimization applications are in use worldwide made them a natural choice for us."
Emre Unlusoy, regional director for Turkey & Balkans at FICO, said: "Akbank is aiming to improve profitability, market share and revenues while decreasing non-performing loans. This is an ideal use of optimization, which brings together analytics, decision logic, mathematical optimization and domain expertise."
FICO® Decision Optimizer enables business analysts to develop, assess and improve the decisions that drive customer interactions and business results. Users can test decision strategies for the optimal results that balance trade-offs between cost, risk and reward, by factoring in dynamic economic and market conditions.
Akbank's mission is to be the leading bank that drives Turkey into the future. The bank has grown to over 750 branches and employs more than 12,000 people.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds 195 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
Learn more at https://www.fico.com
FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.
About Akbank
Akbank's core business is banking activities, consisting of corporate and investment banking, commercial banking, SME banking, consumer banking, payment systems, treasury transactions and private banking, and international banking services. In addition to conventional banking activities, the Bank also conducts insurance agency operations through its branches, on behalf of Ak Insurance and AvivaSA Pensions and Life Insurance
Learn more at www.akbank.com
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SOURCE FICO
FAQ
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