South Africa’s fourth-largest banking group, Nedbank, has
deployed decision modelling and optimisation services, by analytics
and decision management technology provider FICO, with the
aim of making better credit decisions in a demanding
regulatory environment.

According to FICO, South African credit
grantors are increasingly adopting decision modelling and
optimisation analytics to improve their credit strategies.

Gavin Payne, chief risk officer for Nedbank
Retail, said, Nedbank’s goal is “to be world class at managing

Nedbank has worked extensively with PIC Solutions, FICO’s partner
in South Africa,
which uses Model Builder to develop

Decision optimisation is an advanced approach
to credit strategy design that is relatively new to the African

Decision modelling creates a “map” of the
relationships between all variables of a decision — the data
inputs, decision, results and constraints. Optimisation software
uses the decision model to design strategies that determine the
ideal offer for every customer, to maximise profit while satisfying
regulatory requirements.

“Decision modelling and optimisation services
from FICO take us beyond standard uses of predictive analytics,
giving us a better way to make credit decisions in a demanding
regulatory environment with tough competition,” said Payne.

Director of FICO’s operations in the Middle
East and Africa, Robin Findlay, said:

“Since the introduction of the National Credit
Act, credit grantors here have the challenge of increasing revenues
and profitability under stricter responsible lending guidelines.
That’s an ideal scenario for decision modelling and

“Our clients are showing great interest in
using the most sophisticated analytics to design strategies that
are not only compliant, but also highly competitive.”