In October 2008, Loan Factory, developed by the leading Russian banking institution Sberbank, was launched. It is based on the automated procedure of checking and analysing information on borrowers, using internal and external sources and centralised decision making on loan provision through interaction between the bank’s specialists, loan analysts and the work of IT systems.
Since its launch, more than 41.7 mio loans worth RUR 12.3 tln have been provided.
Today, an average of more than 65,000 loan applications from the bank’s branches and digital channels are processed every day.
The first results of the technology’s introduction were the appearance of standard lending conditions, a shorter application review period and half as many visits to the bank. Later, Loan Factory showed that it is an efficient tool for managing the processes of lending and credit risk. As the technology developed, mortgage loan and credit card, as well as micro business lending mechanisms were also organised on the same basis.
The use of mathematical methods allows the decision-making process on providing loans for individuals to be reduced to minutes.
“Thanks to Loan Factory, the portfolio quality has improved and the loan decision-making speed has increased. It will be even better in the future, as the AI and decision-making algorithmisation is developing.” said Senior Vice President of Sberbank Dzhangir Dzhangirov.