Casablanca, Morocco & Bologna, Italy, 21/04/2010

SALAFIN issued a tender to 3 major European decision solutions companies for the auditing and evaluation of the gap analysis between its methodologies based on decisional systems and best practices in Europe. The company was also interested in developing a propensity model to implement appropriate marketing strategies.

“To meet SALAFIN’s goals, we have developed behavioral scoring and custom pre-screening models applied to Salafin data, and fine-tuned these models according to risk and propensity factors. Considering our 20 years experience and expertise in model developing, we have used best practice methodologies for exploratory data analysis, reject inference, scorecard development, scorecard scaling, and reporting, and guaranteed strict controls and high-quality model development”, said Paul Moesch, Business Development Manager at CRIF Decision Solutions.
After analyzing SALAFIN’s existing rules, selecting the main characteristics of the underwriting processes involved in personal loan applications, the CRIF Decision Solutions team identified workflows and evaluation strategies to be improved. Moreover, figures on insolvency, market share and loan characteristics were provided as benchmarks to complement the analysis of the SALAFIN business.
“SALAFIN has always been committed to maximizing internal analysis and credit risk management. This is why some years ago we created a specialized risk management analysis division and we have recently decided to improve our credit strategies and tools. Most importantly, CRIF has been asked to train our internal team by promoting full knowledge transfer. We did not want a black box solution, without understanding what it was all about. Finally, we chose CRIF for its better technical and financial offer”, said Hatim Bghiel, board member in charge of Risk & Marketing Analysis at SALAFIN.
The personalized credit scoring model developed by CRIF Decision Solutions provides SALAFIN with appropriate decision support tools for risk control and marketing strategies. The immediate benefits will be a more objective and consistent credit policy, better risk management and consequently increased profitability.
In the country’s difficult economic context, marked by an increasing level of payment defaults, SALAFIN expects to significantly reduce the risk related costs.
“It will take some months to measure the benefit of this project precisely, since we implemented the latest decisional system around mid January 2010. We are transferring the knowledge we have learned to others products, and we are implementing new decisional systems to them, as well as improving our approach to risk issues, according to the experience we have acquired during our collaboration. Last but not least, thanks to our partnership with CRIF, in November 2009 we launched an important marketing campaign to our best customers, in terms of risk and propensity, and this operation contributed to an increase in our volumes of new personal loans by +19% between November 2009 and January 2010”, added Hatim Bghiel of SALAFIN.
About SALAFIN
SALAFIN is a consumer finance company, founded in 1997, and subsidiary of the 2nd largest private bank of the country, BMCE BANK. The products offered consist of auto loans, personal loans and credit cards and, always focusing on innovation, we were the first to launch auto leasing (LOA), Visa Credit Card and Visa International Credit Card in the country. With 250 million Euros of outstanding loans as of December 2009, the company exhibits the best financial ratios in the industry, and appears among the top 5 players out of 19 in Morocco.
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