In a series of tests, Citadele Banka used Nordigen transaction categorisation and account-based behaviour scoring solutions to identify low-risk clients and gain actionable insights into their clients' spending behaviour, income and loan history. This allowed Citadele to create customised offers for the clients and increase the volume of issued loans.
Citadele aimed to find a unique way to 'activate' the portfolio of existing customers, which consisted of customers that were frequent users of Citadele bank account and debit card. The bank had decided that offering customised pre-approved offers seemed to be a great way to engage the customers further.
However, the bank's main challenge was gathering reliable data to apply to existing scoring models. Customer account data contained all the necessary inputs for the models, such as income information or information about active liabilities. However, preparing the data for modelling would have required much time and internal resources.
Citadele needed an automated solution that would have minimized the time required to prepare account data for pre-scoring. To reach these goals, Citadele applied Nordigentransaction categorisation and behavioural scoring solutions on the sample of more than 200,000 customers. The Nordigen team worked closely together with Citadele data science team to monitor the process and ensure success. The final features used for modelling and pre-scoring were specifically trained on Citadele's data sample, thus producing even higher accuracy.
Citadele was able to identify several thousand low-risk customers. After making customised offers to a subset of these customers, Citadele increased the volume of issued loans.
"In the age of open banking, it is a necessity for every retail bank to engage its existing clients in new ways. We are excited to see Citadele doing that so well and believe the bank is on a high-growth path," says Nordigen CEO Rolands Mesters
Citadele Banka is a Latvian bank and financial asset manager. The Citadele Group is primarily operating in the Baltic countries - Latvia, Estonia, and Lithuania. With a mission of providing their clients with wide-ranging and best-in-class financial services, Citadele aims to become the primary bank of choice for aspiring retail and small business customers across the Baltic.