eurisc analytics and big data solutions
TRANSCRIPT
©2015 • Davide Capuzzo• 5/11/2015
Eurisc Analytics
Credit Bureau Analytic solutions
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Agenda
EURISC Analytics: overview What's going on
– Italy– Czech & Slovak Rep.– India– Vietnam– Other countries
Vision
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EU Analytics: overview
Product lines• Credit Bureau scoring, for the
financial and non financial industries (i.e. Telcos and Insurances)
• Credit Bureau new solutions, such as analytic based solutions (i.e. Financial stress Index, Credit Limit, Profiling, Credit Fair Value for risk assessment, No hit scores, ……) and service improvements
• Credit Bureau scoring preselling, with analytics development and case studies that show the benefits of using credit bureau scores and data
• Eurisc Italy• CB Czech Rep.• CB Slovak Rep.• CB India (High
Mark)• CB Vietnam
(PCB)• CB Jamaica • CB Indonesia• CB UAE • CB Tajikistan• CB Indonesia• ……..
Clients
Product management
Providers• Product
Analytics Italy• CRIF India• ……..
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What’s going on in ItalyPerform 2.0
• Developed in 2014• Live from July 2015• Economic impact analysis design• One to one meetings based on
customized analysis: over 15 meetings already managed;
Perform Telecom• Custom version realized for H3G
Perform Zone Consumer• In progress
Perform Zone Business• Kick Off within the year
Inserting EURISC in internal banks’ processes (POC on BPER, BPM)
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What’s going on in Czeck & Slovack Rep.CCB
• Promotion of Finantial Stress Index live from October 2014
SCB• Third generation of consumer credit bureau
score on banking and non banking bureau was developed in the first mid of 2015 and it is live form mid of June
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What’s going on in VietnamPCB GLocal validation
• Market education started in 2013• PCB has approved in July 2015• Kick Off done in July 2015• Go live for the end of 2015
PCB Credit Bureau score• The first custom version of the PCB
credit bureau score is forecasted for the end of 1016
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What’s going on in IndiaHigh Mark
• MFI Credit Bureau Score delivered in July 2015, will be in production within 2015
• Zone score development in progress
• No Hit Score development in progress
• Commercial Credit Bureau score development in progress
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What’s going on in other countriesUAE
• Al Ethiad Credit Bureau score will be developed starting from September 2015
Azerbaijan
• GLocal validation completed
Jamaica
• GLocal validation in stand-by
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General Considerations Credit Bureau Solutions are becoming more and more crucial to defend the
value of data In some case they could represent the marginality not reachable with the
simple data selling Having the solutions often is not enough: it is necessary to show that they
bring real economic benefit They will allow to integrate the new available information sources and tools
So we work to improve
…. but we are ready to fly
The Sprint Proposition
An ecosystem for the credit valuation
(and more …)
©2015 • Marco Ponzoni • 5/11/2015
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©2015 • Marco Ponzoni • 5/11/2015
Sprint: overview Online (web based) solution for risk assessment on credit applications SaaS platform (multi bank) hosted by CRIF
Real time access to the most important data sources: Public data (Protest, Court Judgments) Credit Bureau & Credit Bureau Scoring (Eurisc) Chamber of Commerce information (sole traders, companies) Financial Statements data (SME – limited companies)
Overall evaluation through scoring models and strategies according to customers’ credit policies
Wide possibilities of customizations at all levels: business process, scoring models, strategies
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©2015 • Marco Ponzoni • 5/11/201512
Responding needsLOW START UP COSTS No IT investment (hardware & software) required for banks No internal structures for the ongoing maintenance of the system Variable (linked to the business) rather than fixed cost
QUICK TIME TO MARKET Can be used as a “ready to go” solution to automate credit granting process
BEST PRACTICE ORIGINATION SOLUTION Best in class processes for evaluating consumers and businesses Standard scoring models developed on aggregate data Pre-defined credit strategies
©2015 • Marco Ponzoni • 5/11/201513
2014 figures: customers & volumesCUSTOMERS About 300 (banks and financial institutions) > 80% Credit Unions & Small Banks New players: telcos & utilities (prospects)
VOLUMES More than 2 million transactions 185.000 monthly average (9.000 daily) 80 % Consumer - 20% Companies
©2015 • Marco Ponzoni • 5/11/201514
Sprint ComponentsThe CRIF solution leverages on software components that have proven to be successful in building loan origination systems
Flexible and innovative Business Process Management Suite which provides: Authentication and authorization module Web front end for user interaction Integration with data sources and information providers Workflow engine Data storage
Decision Support System and scoring engine to implement and execute: risk assessment algorithms (scoring modules) credit strategies
©2015 • Marco Ponzoni • 5/11/201515
Foreign countries: localization aspectsMAIN LOCALIZATION ELEMENTS Language front end – Web User Interfaces Currency in many cases origination processes have to support multiple currencies Data Sources connection to the most relevant information provider such as Credit Bureau Input screens to collect country specific data or allow manual acquisition of external data Legal restrictions (e.g. data protection and storage)
CRIF SUPPORT FOR PROCESS LOCALIZATION Consultancy based on the experience matured in several projects Project Methodology based on internally developed templates to facilitate configuration and
maintenance Training Services on CreditFlow and StrategyOne Project Management throughout all the implementation phase On going support to guarantee maintenance and future evolutions of the system
©2015 • Marco Ponzoni • 5/11/201516
Timeline: a look back at 2015 EVOLUTIONS Sprint Consumer: streamlined and improved process Sprint Business: upgrade for “renewals management” (both Web and A2A channels) Sprint Reporting: new standard version ‘’base’’ (included in the Federcasse framework
agreement)
NEW PERFORM 2.0 2 versions (base & advanced); 27 models Sprint scoring models and credit strategies adjustment (standard & custom)
TECHNOLOGICAL UPGRADES Migration to CreditFlow Java to exploit new features (Es. revamping) Upgrage to Windows 2008 (completion) and Oracle 11
2015
©2015 • Marco Ponzoni • 5/11/201517
Timeline: a look ahead to 2016 EVOLUTIONS Sprint Consumer: model completion (leasing, independent contractor) Sprint Business: new rating models for company (unrated roughly to zero!) Sprint Utilities: a brand new process (dedicated customer) Sprint Collection: a brand new process (remember how many customer we have …)
EXTEND THE ECOSYSTEM Sprint Batch: a new approach to manage the portfolio Sprint Reporting: a management dashboard Management Score: to handle startup companies P2P Solution: a new reality is emerging
GLOBAL PERSPECTIVE A Sprint solution for foreign countries (a new "Star"?)
2016
©2015 • Luigi Mingotti • 5/11/2015
CB Big Data Solution
An Intelligent Data Mining Journey
Warning
With Big Data
Comes Great Responsibility
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We are here
The expected journey
New tool New methodology
Existing CB data
Find new data relations
or patterns
Build new services for customers
Existing CB and new data
Find additional
data relations or patterns
Build even better
services for customers
Area of Great Responsibilities
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The tool
3rd Party Technology platform provider
The BDA product used is MANTICA, running on Hadoop framework
Usage of artificial neural network to perform intelligent data mining
Currently used features:– SOM alghoritm– Graphs
What is an Artificial Neural Network?
Computer programs implementing sophisticated pattern detection and machine learning algorithms on a
computer to build predictive models from large historical databases
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Methodology driven by the tool: SOM Algorithm The SOM algorithm (Self-
Organizing Map) works on data samples
It aggregates the samples in clusters (codebooks) whitin a map, upon a “training” phase
It allows a quicker / easier analysis of data patterns or behaviors
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Methodology driven by the tool: Graphs We’re using two type of
graphs:– Of records– Of variables
The graphs represents the items, grouped by the strength (weight) of their relations
It allows the identifications of hidden groups of relations
It allows to show also sub level of links (MRG)
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What’s next
Maturity of the tool
WW
CC1
know
ledg
e of
tool
/ m
etho
dolo
gy
Quick wins
Patterns identified
Services to customers
New product still evolving (e.g. enhancement in progress for supervised analysis)
No shortcuts: clear definition of the business problem and understanding of data are key
It’s not a disruption vs. traditional methods to analyze data, it’s rather an evolution based on:– knowledge– curiosity– objectives– cooperation– patience
Repetable models
Alternative analysis
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Grazie perl’attenzione