Tablet-based FICO app accelerates loan approvals

T.C. Seow

BIBD At-Tamwil Berhad, a subsidiary of Bank Islam Brunei Darussalam (BIBD), claims that it has seen an increase of 20 percent or more in car loan bookings since it implemented a mobile decision management application developed using FICO technology.

The company's ability to provide on-the-spot decisions for loans has been the driving factor in boosting business. Its marketing agents at car dealers now use Apple iPads to process credit applications at the car lot, entering the customer's financial information into the mobile app, along with photographs of important documents such as identity cards and payslips.

This information, along with credit bureau data, is then analysed using predictive analytics and business rules within FICO Blaze Advisor decision rules system to provide a loan approval decision. This customer-centric approach has streamlined the experience, increasing buyer satisfaction and therefore sales.

"We felt customers were waiting too long for loan approvals using our old system," said Irwan Lamit, managing director of BIBD At-Tamwil, which has a portfolio of more 14,000 consumers in Brunei every year to finance new and used cars or motorcycles. "With this new approach, we've cut the process from a potential 24 hours down to mere minutes while still effectively managing risks. This is a win-win solution that has grown our client base and sales."

BIBD At-Tamwil Berhad, a subsidiary of the largest Islamic Bank in Brunei, made this technology investment as part of its strategy to double its revenue every five years in a highly competitive and saturated marketplace.

"Finding growth meant targeting new customers while managing our risk," said Irwan. "We decided to include non-salary assigned customers, people whose principal bank account is not with our parent bank. To do this, while increasing loan turnaround time, meant quality risk management was an essential ingredient to the solution."

FICO predictive analytics and FICO Blaze Advisor enabled BIBD At-Tamwil Berhad to manage its loan portfolio risk, satisfy regulatory requirements and take full advantage of information from the newly formed credit bureau, which became available in late 2012.