Recent customer feedback revealed that Estonian Coop Pank has increased its underwriting efficiency by 65%. By using Nordigen, Coop Pank’s credit risk specialists can now accurately assess up to three times as many bank statements of loan applicants within the same time span. This helps Coop Pank increase their loan volumes by making faster credit decisions.
Underwriting or screening a loan applicant is a practice as old as money itself. The economic growth of countries, companies and individuals can often depend on how effective lending businesses are at assessing the true creditworthiness of their customers in the shortest time possible.
Coop Pank is an Estonian bank which is owned by tens of thousands of Estonians thanks to consumer cooperatives. The bank puts their customer needs first, so using Nordigen Transaction Categorisation engine to better understand their 'thin-file' customers was a logical next step in Coop's innovation strategy. Providing their customers with better, more efficient services has always been one of the bank's main objectives.
And the investment has paid off. After using Nordigen for less than a year, Coop Pank's survey data indicates that the bank has increased its underwriting efficiency by 65%. Coop Pank's credit risk specialists can now accurately assess loan applicant bank statements up to 3 times faster than prior to adoption of Nordigen.
The improvement helps Coop Pank increase their loan volumes by making faster credit decisions. Coop Pank is amongst the most agile Baltic banks in terms of leveraging Open Banking to the advantage of their current and potential customers.
"Digitizing home loan crediting processes is the most important lever today to achieve the highest efficiency and yield in mortgage lending. Coop Pank’s decision to use Nordigen categorization engine was a big step towards this goal," says Head of Mortgage Lending at Coop Pank Karin Ossipova.
"Extracting categories from raw transaction data can be valuable across all departments - this means getting the "missing" data fragments for real time scoring, pre-scoring as well as for customer segmentation or analytics," adds Rolands Mesters, co-founder and CEO of Nordigen.
Coop Pank, based in Estonian capital Tallinn, is one of the five universal banks operating in Estonia. It has 15 branch offices and 28 banking points all over the country. In September 2019, the number of clients using Coop Pank for their daily banking reached 56,300. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The main shareholder of the bank is the domestic retail chain Coop Eesti comprising of 330 stores.