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Predictive modelling solution for Malaysian banks

AvantiKumar | May 3, 2012
FICO: Analytic solution can help Malaysian banks meet compliance standards as well as improve performance.

Dinesh Pereira - FICO Asia Pacific

PHOTO - Dinesh Pereira, country manager and client partner, Malaysia, FICO Asia Pacific.


A new analytic solution could help Malaysian banks meet compliance standards as well as improve performance, according to analytic solutions firm FICO.

FICO Asia Pacific country manager and client partner, Malaysia, Dinesh Pereira, said the new FICO Model Central solution could also help Malaysian banks improve performance by bringing new predictive models to market up to 50 percent faster.

Pereira said that Malaysian regulators such as Bank Negara have been issuing more stringent analytic model mandates, trying to improve banks' chances of long-term viability and success by demanding that existing and new models deliver the maximum predictive power to better manage credit risk. "As a result, Malaysian banks have to step up rigour around tracking and audit requirements to satisfy new regulatory requests and the demands. Many are under pressure to improve overall financial performance while ensuring compliance with these new provisions."

"With the introduction of FICO Model Central Solution, banks in Malaysia will be able to provide up-to-date analytic risk models required by regulators, promoting more transparency over financial decision-making strategies," he said. "This improved capability to incorporate debt service calculations within the decision making process is in line with the regulator's responsible financing guidelines to prevent borrowers from over-borrowing on housing, car, personal and credit card loans."

"Household debt to gross domestic product stands at 76.6 percent," he said. "By improving their models in which they deploy analytics to make decisions, banks in Malaysia can respond faster to risks in external environments and enhance decision-making ability."

"No other offering on the market today takes as holistic a view of an organisation's model environment as FICO Model Central Solution," said FICO chief analytics officer and head of FICO Labs, Andrew Jennings. "Combining rapid development and deployment, the rigour of audit tracking and decision optimisation creates real value for our clients as they meet the challenges of regulatory audits and the need for increased precision in their lending decisions."

 

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