Taishin International Bank triumped in the Excellence in Loan Origination category for two projects that are linked and support each other. Its development of a loyalty programme entitled Maji Index that also scores and segments customers into different loan origination processes depending on their profiles, is an innovative development that reduces application times, repeated data entry and so on.
The Maji Index uses artifical intelligence (AI) powered machine learning, big data analysis (BDA), open application programming interfaces (APIs) to link card and other customers in, cloud computing to coordinate it, and social media to increase profile accuracy and engagement. Discounts are on offer to platinum, gold and silver participants and dynamic scores assigned to each.
The real depth of the interlinked project becomes obvious when the Maji score assigned to each participant is used in the Richart digital bank app brand and new Richart Smart Loan product launched by Taishin.
Customers’ details can be prepopulated into the smart loan application that is targeted according to their Maji profile. This delivers transparency via precalculated set loan limits, interest rates, handling fees and so on. It also speeds up turnaround times so that customers can get funds in 20 minutes via paperless processes.
Optical character recognition (OCR) technology can also be used to take a picture of ID cards to easily ascertain and validate birthdays, addresses and so on in an alterantive fashion – providing yet another way to speed processes along.
Customers’ daily behaviour is tracked and their 0-100 Maji score is updated every day to increase interactivity, lower the risk of bad debt, and improve targeting. For every 10 points achieved the interest rate and handling fee lower by 0.1%.
The Richart Smart Loan product has enabled Taishin International Bank to offer a low TWD$30,000 amount for the very first time, equivalent to approximately USD$1,000. Normally its loans ranged from TWD$150,000 to 2 million in the past, as the lack of automation and bad debt fears previously made it too expensive to operate in this field. This is no longer the case. Its innovative, linked developments have given the bank new more effective loan origination procedures and new aveneues for growth, at a low cost. At launch, 15,000 applications were soon garnered and the lending amount reached TWD$5.5 billion.
Taishin International Bank also won the Best Retail Bank in Taiwan category at the RBI Awards 2020. This was for a combination of initiatives, including its Richart digital bank brand and new Smart Loan process (see above), which have given Richart a 50% share in the digital account market. The other retail bank initiaitves it was rewarded for, which culminatively gave it the trophy, included:
- An AI chatbot named Rose, which provides real-time responses to credit card, exchange rate and other queries.
- Facial recognition-equipped ATMs at branches.
- Launching new internet and mobile insurance businesses for the general motor, travel and accident arenas.
- An open API available to retailers that offers a QR code that can be incorporated into their apps. This speeds up shopping and convenience for the consumer.
The establishment of a Digital Strategy Committee at the bank focused on ABCD products – using AI, Blockchain, Cloud computing, and (big) Data – to improve services was also deemed noteworthy.
The success of its various retail bank initiatives, across its differing lines of business, is evidenced by:
- A 15.2% rise in the number of credit cards in circulation.
- Credit card spending going up 25.2% year-on-year (YOY).
- Wealth management fee income growth of 8% YOY.
Other culminative benefits all helped to contribute towards Tashin Bank’s net income last year, which increased by 12.2% after tax to TWD$10bn.
Taishin International bank was also highly commended in the following categories: Best Loyalty/Rewards Programme, Best Social Media Marketing Campaign, Best Use of Machine Learning, Excellence in OmniChannel Integration.