Eurisc analytics and big data solutions

1. Eurisc Analytics
Credit Bureau Analytic
solutions
©2015 • Davide Capuzzo• 5/11/2015

2. Agenda
 EURISC Analytics:
overview
 What's going on
– Italy
– Czech & Slovak Rep.
– India
– Vietnam
– Other countries
 Vision
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3. EU Analytics: overview
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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
• ……..

4. What’s going on in Italy
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Perform 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)

5. What’s going on in Czeck & Slovack Rep.
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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

6. What’s going on in Vietnam
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PCB 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

7. What’s going on in India
7
High 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

8. What’s going on in other countries
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UAE
• Al Ethiad Credit Bureau score will
be developed starting from
September 2015
Azerbaijan
• GLocal validation completed
Jamaica
• GLocal validation in stand-by

9. 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
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10. The Sprint Proposition
An ecosystem for the credit valuation
(and more …)
©2015 • Marco Ponzoni • 5/11/2015
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11. 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
©2015 • Marco Ponzoni • 5/11/201511

12. Responding needs
LOW 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 • 5/11/201512

13. 2014 figures: customers & volumes
CUSTOMERS
 About 300 (banks and financial institutions)
 > 80% Credit Unions & Small Banks
 New players: telcos & utilities (prospects)
©2015 • Marco Ponzoni • 5/11/201513
VOLUMES
 More than 2 million transactions
 185.000 monthly average (9.000 daily)
 80 % Consumer - 20% Companies

14. Sprint Components
The 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 • 5/11/201514

15. Foreign countries: localization aspects
MAIN 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 • 5/11/201515

16. Timeline: a look back at 2015
©2015 • Marco Ponzoni • 5/11/201516
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

17. Timeline: a look ahead to 2016
©2015 • Marco Ponzoni • 5/11/201517
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

18. CB Big Data Solution
An Intelligent Data Mining Journey
©2015 • Luigi Mingotti • 5/11/2015

19. Warning
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20. 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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21. 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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22. 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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23. 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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24. What’s next
Maturity of the tool
WWCC1knowledgeoftool/methodology
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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25. Grazie per
l’attenzione