British Business Bank
Cracking the code: reducing exposure to risk with predictive modeling
Sheffield, United Kingdom
British Business Bank (BBB) provides much-needed finance to small and medium-sized enterprises through its subsidiary The Start Up Loans Company. Having previously relied on a network of partners to check loan applicants, the bank wanted to enhance its risk management processes and lower its default rate. To achieve these objectives, BBB implemented the Explainable AI (XAI) platform and used historical data from 10,000 customers to develop a predictive model to analyze the probability of missed repayments. With the platform fully integrated into its workflows, BBB completes risk scoring faster than ever and 31% more accurately than leading credit bureaus. The bank has successfully reduced its exposure to risk, eliminated time-consuming manual working, and increased its pass rate by 20%.
“The ease of use is incredible—selecting the features to develop the required model happened really quickly. It has been very easy; I have been really impressed with the level of service we get from Temenos.”
Yogendra Patel, Senior Risk & Data Manager