ENBD advances with AI on credit decisioning
The collaboration endeavors to better serve the customer digitally through data-driven decisions
As part of its digital transformation initiative, Emirates NBD, one of the leading banks in the region, has entered into a strategic partnership with SAS, the leader in analytics.
This collaboration underlines the use of data to ensure optimization and reallocation of resources, automate credit and drive smart decision making to deliver excellent customer experience.
With a total assets of around $136 billion, the Emirates NBD Group has a significant retail banking franchise in the United Arab Emirates. The Group is also a key participant in the global digital banking industry, with over 90% of all financial transactions and requests conducted outside of its branches, which has resulted in risk management to become ever-more fundamental to the successful operation of a bank.
In light of this development, Emirates NBD needed a technology solution that would help to quickly and accurately make credit decisions, enabling the bank to maintain acceptable levels of risk exposure, while growing the business.
Risk E-business: While Emirates NBD had already implemented more than 30 mature analytics score cards that supported credit decisions, significant amount of time in the process was spent on human actions before making the final decision. The bank wanted to scale up its level of business which corresponded to the speed of decision-making - but not to waste resources through having to hire unnecessary numbers of staff.
Loss of business opportunities: Rejected credit applications took a long cycle to be re-adjusted and get approved again, which led to lost business opportunity as well as competitive disadvantage.
Optimizing and allocation of resources: As the business grew, the existing process demanded additional human resources, which resulted in resource bottlenecks.
"Emirates NBD as a brand is committed to our customers and community - we are always endeavoring to make life easier for the customer. We had evolved a whole range of score cards, such as application score cards, behavior score cards, and collection score cards. We needed a tool to enable us to consolidate the value all these score cards were bringing to us and to our customers, including managing the speed of decision making and the cost of risk." Manoj Chawla, General Manager - Risk Group, Risk Management at Emirates NBD
Automating Credit: With the SAS platform, decision making is now almost instantaneous - once the data entry is completed, the platform can get to a decision within an average of 2 minutes. The improved turnaround provides a superior experience for both Emirates NBD customers, and the bank's network of channel partners.
Paying Dividends: Since implementing the SAS DMS platform, Emirates NBD has already seen some dramatic improvements in key metrics: "bad rates" have been reduced 30%, the underwriting effort has been cut by 67%, and the time to decision has been lowered by 80%.
Robust decision engine: The SAS platform provides Emirates NBD with a robust framework to shorten the turnaround time and the flexibility to create policy rules, configure credit bureau reports and fraud rule, and most importantly, become agile by making decisions at the speed of business.
AI-driven Counter Offer Generation: Today, with the help of the SAS Platform, Emirates NBD can offer customers a choice of alternative products and options. If the original product requested is not something the bank can provide based on the assessment, they can provide alternatives for the customer, further strengthening their competitive differentiation.
Emirates NBD is now in the process of implementing the SAS DMS platform across its entire range of products, and the bank is looking at ways in which it can enhance the platform, such as greater use of artificial intelligence (AI). The bank has come a long way in its analytics journey - and it is continuing in an upward direction.
"SAS is pleased to have partnered with Emirates NBD who has been leading the frontlines of innovation and transformation in the banking sector. Building on our longstanding relationship, we aim to help the bank achieve its digital vision, scale its business backed by data-driven decisions and ensure customer satisfaction by leveraging our industry leading analytics platform and expertise." Marcel Yammine, General Manager, Gulf & Emerging Markets at SAS Middle East