Russian Bank Speeds Loan Decisions with SAS®

CARY, N.C.--Looking to update its loan application system, Otkrytie Bank revamped loan decision making with SAS® Real-Time Decision Manager. The bank wanted to move loan applications forward more quickly while making better decisions. Introduced in March, the system has already improved back-office performance and reduced loan application review time frames. An existing SAS customer, Otkrytie reviewed several solutions before choosing SAS Real-Time Decision Manager. The bank will use SAS to further develop retail business and speed responses to loan applications. The bank will also integrate SAS Real-Time Decision Manager with its recent SAS Marketing Automation implementation to incorporate risk-level considerations into marketing offers and make better cross-selling decisions.

"In addition to flexible licensing, the SAS Real-Time Decision Manager architecture offers an advantage," explained Vyacheslav Blagirev, Business Partner of the Risk Department at Otkrytie Bank. "It's not a 'black box.' The flexible platform provides many options for supporting loan decisions, such as integration with credit bureau services and their routing option. Also, SAS Real-Time Decision Manager can easily be replicated in other business areas, including small and middle-sized business lending."

"Our previous system no longer met performance or fault tolerance objectives, causing additional operational risks," said Igor Michurin, Head of Risk Management Infrastructure at Otkrytie Bank. "We implemented SAS Real-Time Decision Manager quickly, thanks to the efficient interactions between the SAS team and the bank's units for risk and IT teams."

"With SAS, we have lowered risks associated with the performance and fault tolerance of our IT infrastructure," said Blagirev. "We reduced the average time to review a loan application to two minutes. We also expect to decrease credit bureau inquiries and speed the processing of high-priority loan applications."

The transition to the new system took just four months, including testing and transitioning into commercial operation.

A particular challenge was switching the loan pipeline over to the new platform without interrupting operations. "Jointly with the SAS Russia/CIS team, our professionals planned a SAS Real-Time Decision Manager introduction that considered specific bank requirements," said Alexander Volkov, Project Manager at Otkrytie Bank. "As a result, the transition took place almost imperceptibly. The professionalism and project management level of our SAS associates allowed us to complete the project in record time."

During the implementation, the existing strategies for express products (POS) and cash loans (CASH) were transferred to SAS Real-Time Decision Manager. Near-term plans include optimizing the system logic and migrating remaining loan pipeline functions, such as card product strategies.

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About Otkrytie Bank

Otkrytie Bank is a commercial bank that offers its customers a range of traditional banking products, as well as investment, retirement, and insurance services. The bank, formed through the merger of four banks under the brand name Otkrytie, ranks among the top 30 Russian banks in terms of assets. Otkrytie Bank has a Standard & Poor's international credit rating of B with a positive outlook, and a Fitch long-term credit rating of B with a stable outlook. The main shareholders of the Bank are Otkrytie Finance Corporation, NOMOS-BANK, Deposit Insurance Agency, and International Finance Corporation (IFC), which is a part of the World Bank Group and makes investments in the most prospective companies worldwide.
About SAS
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions, SAS helps customers at more than 65,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world The Power to Know® .