Bradesco uses the FICO platform to deliver real-time credit solutions and increase digital transactions by more than 60%



Strong points:

  • Bradesco increased digital transactions by more than 60% with real-time credit solutions

  • Bradesco increased line of credit revenue and user numbers by approximately 15%

  • Bradesco won a 2022 FICO® Award Decisions for Customer Onboarding and Management

Bradesco, one of Brazil’s largest private banks, used FICO® Platform to create a digital, real-time and complete credit solution that has revolutionized the customer journey with instant decisions and optimized pricing. Known internally as the “brain” (Bradesco Inteligência de Negócios / Bradesco Intelligence in Business), the decision management project has reduced the time it takes to bring projects to production and introduced more consumers to digital solutions, increasing digital transactions by more than 60% during the COVID-19 lockdowns. COVID19.

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“Bradesco’s vision is to offer credit as a service”, said Janaina Souza, head of consumer credit solutions at Bradesco. “We knew we could disrupt the Brazilian credit landscape if we could apply advanced technologies to manage products, prices and limits transparently and in real time. By using FICO technology to automate the credit cycle, we’ve created a new and exciting experience for our customers, and as a result, we’ve seen significant growth across our business. »

Prior to implementation, granting a line of credit to a consumer or small business customer could take up to six months due to the high latency of Bradesco’s legacy decision engine. Now customers can apply for and obtain access to a line of credit in just two days, which has increased both revenue and the number of credit users by approximately 15%.

“We knew that by leveraging the latest AI and advanced business analytics technologies, we could create an experience that would exceed customer expectations and ensure they were treated as individuals, Souza said. “The main challenge was defining the architectural approach that would meet the business goals and drivers, and then bringing together 16 different departments to collaborate on its delivery.”

Bradesco built “Brain” in the third quarter of 2019 to connect all members of this multidisciplinary structure formed by 800 employees and contractors from approximately 28 suppliers and consulting firms to disrupt the status quo and foster the digital transformation that the bank is pursuing. .

At the center of Bradesco’s “brain” is FICO® Platform – The ability to execute decisions and the ability of the FICO platform to process the data required for batching and streaming.

The team’s goal of delivering the best digital experience has led them to focus on five distinct pillars that define the development of every new offering.

  1. Customer journey : Unify and improve the customer experience across all channels.
  2. Integrated products: Integrate products guaranteeing customers the best credit offers according to their needs.
  3. Real time: Maintain a real-time information base to improve decision-making.
  4. Operational efficiency: Make changes without impacting the stability of critical environments and bank operations; simplify change processes.
  5. Optimization of prices and conditions: Maximize product profitability, improve credit offerings, costs and benefits.

In 2021, new features have been integrated into Brain. For example, when a customer makes an instant payment and does not have all the necessary funds in their account, the Brain solution checks their credit limit and ensures that additional credit is provided to complete the transaction.

Bradesco has also made significant changes to the way clients can restructure or reorganize existing loans and renegotiate new loan terms.

The results of the Brain project have been significant. Bradesco increased extended credit by 55%, renegotiation rate increased by 22% and bad debt decreased by 41%.

“Bradesco integrated customer journeys, processes, pricing and credit using real-time, analytics-driven FICO technology,” said Nikhil Behl, Chief Marketing Officer of FICO. “The willingness to look at every interaction from the customer’s perspective is clearly a winning approach.”

For his achievements, Bradesco won a FICO 2022® Price Decisions for customer onboarding and management.

“I was really impressed with the use of high-end back-end analytics to deliver this service at Bradesco and the organizational structure with which they executed it,” said Sidhartha Dash, director of research at Chartis and one of the judges for the FICO Decisions Awards. “The scale of the undertaking should not be underestimated, especially under the conditions of the pandemic.”

About Bradesco

Banco Bradesco, founded in 1943, is the second largest private sector bank in Brazil in terms of total assets, with 74.1 million customers, 36.3 million account holders and 81.9 thousand points of service.

About the FICO® Decisions Awards

The FICO Decisions Awards recognize organizations that achieve outstanding success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based on measurable improvement in key metrics; demonstrated use of best practices; the scale, depth and scope of the project; and innovative uses of technology. The 2022 judges are:

  • Sidhartha Dash, research director at Chartis
  • Paul Deal, Head of Risk, Mortgages at Westpac (previous winner)
  • Senthil Erulappan, Director, Merchant Product Engineering, Risk and Collections at FIS
  • Armand Junior, Managing Director, Risk and Compliance at Dock (previous winner)
  • Sheila Leverone, head of marketing at eDriving (previous winner)
  • Sibul Bradesco Ncamani, head of operational risk and governance at Absa Bank (former winner)
  • Graham Rand, operational researcher and publisher of Impact
  • Dinesh Suresh, Manager, Digital Constructs for Consumer Secured Loans at OCBC Bank (former winner)

Winners of the FICO Decisions Awards will be spotlighted and will win tickets to FICO® World 2022, the decisions conference, May 2022 in Orlando, Florida.

About FICO

FICO (NYSE: FICO) powers the decisions that help people and businesses around the world thrive. Founded in 1956, the company pioneers the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction, and business growth in financial services, manufacturing, telecommunications, healthcare, retail, and many other industries. . With FICO solutions, businesses in more than 120 countries are doing everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of planes and rental cars are in the right place at the right time.

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FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.

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