Winning Digital Strategies: Credit Risk Assessment Goes Digital

On November 16, 2017, the second event from the Winning Digital Strategies series was held in Moscow by the Vedomosti business daily in partnership with the National IT Leader Prize. Top managers from banks and other financial institutions joined the round table to share experience in employing digital techniques for credit risk assessment. The event was moderated by Ivan Lebedev, Founder and Managing Partner of REBUS Lab.

In a rapidly digitizing world, banks are looking for new solutions to gain a competitive edge and win creditworthy borrowers. Armed with digital technology, the market players will be able to not only analyze and consolidate borrower details with higher speed and scrutiny, thus mitigating overall credit risks, but also offer a credit product that fully meets customer needs and expectations.

Andrey Emelin, Chairman of National Financial Market Board, announced the expansion of electronic interaction with government authorities. Today, a remote biometric identification system is about to go live. People can become bank customers remotely after biometric check.

Sergey Kapustin, Deputy Chairman of the Board, OTP Bank, told the audience about the bank’s focus on Big Data technologies that help harvest and leverage more high-quality intelligence to pursue new approaches to routine business processes. Having Big Data technologies in place, the bank is going to boost its efficiency in several years —something that seems to be really possible now.

“Banking services undergo drastic digitalization-driven changes. Today, banks possess a so-called digital footprint of a customer — enormous amount of data collected from credit history bureau, government organizations, and even social media. This information can be successfully handled using Big Data technologies. Credit risk assessment techniques powered by Big Data will reduce time and costs when it comes to checking many thousands of credit applications, help scrutinize customer details and use such intelligence to offer individual approach to each customer,” said Sergey Kapustin, Deputy Chairman of the Board, OTP Bank.

Ekaterina Reznikova, Vice President, Member of the Board and Head of Retail Risk Block, MTS Bank, said that, last year, MTS BANK decided to increase the portion of customers coming through digital channels. To that end, the bank launched a unique mobile commerce project, so called ‘promised payment’, to lend microloans to customers. These services help customers with everyday trivial expenses when, for instance, a customer needs to pay for parking but runs short on mobile cash. She says that the project is steadily evolving and promising for the bank.

Grigory Shabashkevich, Vice President, Director of Risk Management Department, Renaissance Credit, addressed the topic of how to fully automate credit decision making and provided statistics showing that each month hundreds of thousands of credit applications are reviewed at Renaissance Credit automatically. He also shared the bank’s experience in machine learning methods used to automate decision-making.

Sergey Gmyzin, Deputy Head of Retail Risk Management Department, Raiffeisenbank, spoke about process digitalization at his bank during the last year. Thus, in July, Raiffeisenbank rolled out an electronic crediting service, which employs digital signature and is offered to bank's current customers.

"The advancement of digital technology is challenging large banks to redress their front office approaches. Today, we are witnessing how innovative technologies are leveraged to solve various banking tasks. This is why this event is of a great value to us. Business process digitalization is a hot topic for Raiffeisenbank. For example, many banks are now getting more and more focused on machine learning, and, in this context, we were extremely curious to exchange experience and opinions with peers," said Sergey Gmyzin, Deputy Head of Retail Risk Management Department, Raiffeisenbank.

Dmitry Sergienko, Head of Retail Lending Risk Management at Risk Management Department, Rosgosstrakh Bank, said about the bank’s long-term use of Big Data for customer solvency evaluation. Dmitry also noted that, instead of just scoring as it had been before, the risk management function now supports the entire sales funnel, from customer acquisition to a final stage.

Mikhail Bashlykov, Business Development Director, CROC, described how Big Data is used for comprehensive customer analysis and relevant credit decision making. In his opinion, risk assessment must not only minimize losses but give birth to new data analysis models and new customer segments, taking into account increasingly more data and data sources. Mikhail also emphasized that CROC is experienced in data monetization projects for the banking sector and realizes that legacy approaches do not work anymore since they are not designed to analyze large data streams in real time. This is why handling such streams systematically rather than haphazardly requires a Data Lake system.

"As of today, the quality of extended credits and, therefore, the bank's profit directly depend on the use of cutting-edge data analysis tools. The amount of customer information is growing exponentially, with some data being relevant in real time only. We see a solution in building Smart Data systems capable of aggregating large data streams from multiple sources and being a foundation for developing evaluation models and machine learning. This approach will allow banks to assess credit risks in a faster and more accurate manner," said Mikhail Bashlykov, Business Development Director, CROC.

Yaroslav Poleschuk, Director of Retail Lending Risk Department, B&N Bank, noted that B&N Bank worked hard to merge several banks and improve portfolio management, including the use of machine learning to manage past due debts.

Roman Litvinov, Deputy Director of Risk Department, Russian Agricultural Bank, shared his vision on how to develop risk management models in the digital transformation era. Thanks to risk management digitalization, customers will no longer need to collect data themselves—something that makes their life easier, but poses new challenges to banks. In Roman's opinion, banks will not disappear but dramatically transform their operation models. Thus, a so-called Invisible Banking concept will emerge, when a customer is hardly involved in processes and relevant decisions are made seamlessly. This will be a symbiosis of a bank and IT company.


The Annual National IT Leader Prize was established in 2002. The Organizing Committee includes the Russian Managers Association, iBusiness web portal; Dengi and iOne magazines (Kommersant Publishing House); Intelligent Enterprise; and CROC.

Information Partners (in the past): Business FM radio station, The Analytical Banking Magazine, and Systems Administrator and BIT. Business & Information Technology magazines. Information TV Partner is World Business Channel. Finally, the online partners are Comnews, ICT-online, IT Manager, CRN, CTA (Contemporary Technologies in Automation), The National Banking Journal, and Global CIO magazines.

The IT Leader Forum is a landmark event in Russia which has been held since 2002 and is attended by over 300 executives and IT directors from the Russian and international companies. Last year, presentations were delivered by top managers from Yota, Enter Svyaznoy, Moscow United Electric Grid Company, URALSIB Bank, Sberbank of Russia, etc. In the past, IT Leader Forum special guests included: Steve Wozniak, Apple co-founder; Thomas Frey, Executive Director and Senior Futurist at the DaVinci Institute; Peter Hinssen, co-founder of Across Group and CEO of Across Technology; and Josep Curto, CEO at Delfos Research and professor at IE Business School Madrid.

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About Vedomosti Praktika

Vedomosti Praktika means:

  • Venue for open dialog, opinion exchange and discussion of the most pressing business matters, progressive ideas and innovative technology
  • Venue for Russian and international business communities to meet and analyze and apply the best corporate management practices
  • High-level attendees and speakers: executives and business owners, top managers, heads of representative offices and departments of Russian and international companies