Turkey’s Akbank has chosen global analytics and decision management provider FICO to manage its consumer credit card portfolio.
Through the partnership, FICO will train an in-house team so they can build their own applications for other areas, such as loan amount and pricing optimisation, customer-based limit optimisation and restructuring optimisation.
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Serhan Pak, Akbank’s SVP for retail lending, said: “We view optimisation 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 optimisation applications are in use worldwide made them a natural choice for us.”
FICO “action-effect” models
In addition, FICO will configure and develop sophisticated “action-effect” models for Akbank’s retail lending team to manage their initial credit limit assignment and the on-going limits for Akbank’s consumer credit card portfolio.
The action-affect models project customer responses to offers in order to determine the best offer for each customer. These will then be configured into the optimisation framework, enabling Akbank to choose an operating point that meets their requirements.
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 optimisation, which brings together analytics, decision logic, mathematical optimisation and domain expertise.”
To transform Akbank’s credit card portfolio, FICO will use its Decision Optimiser tool, which aims to enable business analysts to develop, assess and improve the decisions that drive customer interactions.
The move is part of Akbank’s mission to expand its offering and become the leading bank in Turkey. Earlier this year, the bank integrated with cryptocurrency exchange company Binance.
The partnership will enable the bank’s customers in Turkey to deposit Turkish Lira (TRY) to their Binance account through their bank account.
