Lloyds Banking Group has teamed up with analytics software company FICO, in an effort to move its lending infrastructure to the cloud.
By leveraging FICO Platform, Lloyds Banking Group said it has enabled over £7billion in annual loans. Through real-time data ingestion and advanced analytics, the platform has helped to drive a 2.5 per cent credit card approval uplift, double new-to-bank consumer loan customers, and resolve over 50 system limitations, delivering more efficient lending decisions across products.
This transformation addressed the limitations of Lloyds’ legacy lending infrastructure, which it said struggled to support growth and evolving customer needs.
“It became clear that our lending infrastructure was becoming a barrier to the strategic growth ambitions of the bank,” explained Ian Rockliffe, head of consumer credit risk transformation at Lloyds Banking Group. “We needed the ability to scale to meet our customers’ needs within the digital channels. We also needed to bring in new data assets to support growth, sustainability and enhance our responsible lending position.
“Working with FICO we have been able to simplify the whole technology estate and implement a market-leading cloud-based infrastructure. This delivers major technology enhancements and other significant benefits. We serve one out of every two households in the UK, and these changes help us say ‘yes’ to more customers.”
This transformation has also delivered several firsts for Lloyds, including launching a new cloud-based application viewer for underwriters and other teams. Since going live on FICO Platform, Lloyds has already completed a bureau data upgrade in weeks (compared to months in the past) highlighting the platform’s ability to accelerate innovation and operational efficiency.
Cloud optimisation
Nikhil Behl, president of software at FICO, also added: “Not only has the new integration helped Lloyds to fundamentally change its technology, the Group has also adopted a truly agile approach when delivering technical and business change. Upgrades no longer take months or years, but can be completed within minutes and days, providing significant operational efficiencies.”
With FICO Platform, Lloyds Banking Group has mathematically optimised its strategies and rules and can now share logic and components across portfolios, enabling a more consistent customer experience, and accelerating speed of change.
Lloyds had over 20 on-premises applications and complex data flows in its legacy lending infrastructure. The project required a large data mapping exercise to understand where derivations or changes to the data could be occurring through the various systems and what these would look like going forward.
“This was a huge undertaking, given the prevalence of the decision data and bureau data across the business, but implementation was efficient and seamless,” added Rockliffe. “We are already seeing great results on loans due to the bureau data upgrade, and expect to see the same on cards.
“Our new lending infrastructure, with FICO Platform at its core, has allowed us to scale and adapt to deliver another key strategic delivery for the group, bringing eligibility assessments in-house for credit cards. Importantly, we are also seeing robust performance of the new architecture, ensuring we are there to meet the lending needs of our customers 24/7.”
