Grupo Monge Increases Credit Approvals By 10% Using FICO Analytical Decision To Grant Loans To Underserved Consumers


MIAMI, May 11, 2021 / PRNewswire / –

Strong points:

  • Grupo Monge increased credit approvals by 10% and reduced spending by 25%.
  • Grupo Monge is evolving lending with flexible, efficient and decentralized risk decision-making technologies.
  • Grupo Monge won a FICO 2021® Award Decisions for Financial Inclusion.

Grupo Monge, one of the largest multinational retailers in central America, has used the analytical decision to improve the way it assesses and grants credit to its clients, especially those previously excluded from access to loans. By implementing FICO® Councilor Blaze® A decision rules management system, Grupo Monge expanded credit approvals by 10 percent, reduced expenses by 25 percent, and reduced the time required to assess credit application by 30 percent.

More information: https://www.fico.com/en/products/fico-blaze-advisor-decision-rules-management-system

Grupo Monge is a retail giant with over 500 stores operating in Costa Rica, Guatemala, Honduras, Nicaragua, El Salvador and Peru. The group has grown considerably by offering consumer goods loans that can be repaid with affordable payments tailored to customer conditions.

Prior to the implementation of FICO Blaze Advisor, credit analysis was performed in person at Grupo Monge companies in a process that clients found long and complex. While there was a strong consumer demand to purchase substantial items on credit such as motorcycles, electronics, and white goods, the company’s growth was hampered by inflexible systems.

“We understood that for our business to grow, we needed a way to improve our ability to assess customers and create a unique approach to the market,” he added. mentionned Jose gonzalez, director of operations at Grupo Monge. “We had obviously gone beyond the model where you had a manager who made the decisions about in-store loan applications. What was needed was to move to a flexible, efficient and decentralized approach.

For many clients in the target segment of this project, purchasing consumer goods with cash was their only option. Grupo Monge knew that it could change that and finance a large part of the population who needed credit to equip their homes.

To achieve this, Grupo Monge had to accurately assess the risk of each consumer. FICO worked with Grupo Monge to develop dashboards that would help them automate the process as the volume of credit applications increased. Rather than a single predictive model, Grupo Monge and FICO saw the opportunity to produce country-specific models that capture regional risk patterns.

These models are activated in FICO® Councilor Blaze®, an advanced tool for decision strategy management. FICO Blaze Advisor is now the “central brain” of the credit decision process in all countries. Grupo Monge’s risk management teams can develop, create and test their own policies, which accelerated the implementation of policy changes and improvements.

Beyond automating the origination process using dashboards and FICO Blaze Advisor, Grupo Monge now uses this “central brain” to also make decisions about fraud, collection and sales. cross. More recently, Grupo Monge and FICO worked on a cross-sell project to spot additional opportunities using the existing platform.

“By automating business rules and centralizing the analysis process, Grupo Monge has modernized its lending approach”, mentionned Nikhil behl marketing director at FICO. “People who previously could not afford expensive cash items now have credit to improve their lives. This financial inclusion campaign has brought benefits to both Grupo Monge and its customers.”

For its achievements, Grupo Monge won a FICO® Decisions 2021 Award for Financial Inclusion.
“Grupo Monge has adopted a global and strategic approach to create credit opportunities in six countries”, said Prasanna Dhoré, director of data and analytics and innovation at Equifax and one of the FICO Decisions Awards judges. “What they have been able to achieve in terms of financial inclusion is quite remarkable. They have coordinated the credit process in many areas of their business, from sales to risk, from customer service to finance.”

About Grupo Monge
Grupo Monge is a Costa Rican company that is dedicated to the retail of home appliances and furniture in the center and South America. He currently has stores in Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala and Peru.

Grupo Monge operates under the following five trademarks

  • El Gallo más Gallo
  • Monge
  • El Verdugo
  • Prado
  • Serpento

For more information, please visit www.grupomonge.com

About the FICO® Decisions Awards
The FICO Decisions Awards recognize organizations that achieve outstanding success using FICO solutions. A panel of independent judges with in-depth industry expertise assesses entries based on measurable improvement in key metrics; demonstrated use of best practices; scale, depth and scope of the project; and innovative uses of technology. The 2021 judges are:

  • Prasanna Dhoré, data & analytics and innovation director, Equifax
  • David Dittmann, Vice President, Data and Analytics, P&G (2019 winner)
  • René Javier Guzmán, director of market and liquidity risks at Banreservas (winner 2019)
  • Tomas klinger, director of decision and data science Home loan (2019 winner)
  • Marcel Le Gouais, editor-in-chief at Credit strategy
  • Tiffani Go Up, banking analyst at Aite
  • Lisa morgan, journalist & analyst at InformationWeek
  • Ignazio Provinzano, risk operations manager at Swisscard (winner 2019)


The winners of the FICO Decisions Awards will be highlighted and will win tickets to FICO® World 2021, the decision-making conference, November 2021 in Orlando florida.

About FICO
FICO (NYSE: FICO) makes decisions that help people and businesses around the world thrive. Founded in 1956 and headquartered in Silicon Valley, the company is a pioneer in using predictive analytics and data science to improve operational decisions. FICO holds more than 195 U.S. and foreign patents on technologies that increase profitability, customer satisfaction, and business growth in financial services, manufacturing, telecommunications, healthcare, retail and many other sectors. Using FICO solutions, businesses in more than 120 countries are doing everything from protecting 2.6 billion payment cards against fraud, to helping get credit, to ensuring that millions of planes and rental cars are in the right place at the right time.

Learn more about www.fico.com.

FICO and Blaze Advisor are registered trademarks of Fair Isaac Corporation in the United States and other countries.

FICO SOURCE

Related links

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