Case Study: China Minsheng Bank achieves stronger micro and small enterprise lending risk management and Basel II compliance with FICO

China Minsheng Bank improves micro and small enterprise lending, strengthens Basel compliance

China Minsheng Banking Corp., Ltd., one of China’s largest financial institutions, faced rapidly growing micro and small enterprise (MSE) lending—over 250.6 billion RMB across more than 640,000 accounts—and needed to manage credit risk more efficiently while meeting Basel II compliance. The bank struggled with scattered, small-scale clients, incomplete financial data and the challenge of scaling risk controls as its SME portfolio expanded.

CMBC engaged FICO to build lifecycle risk models (application, behavior, collection) and a Basel-aligned pool assignment system, supplementing data with 160,000 additional transactions and developing industry-specific and behavior scoring models. The implementation introduced automated decisioning, early-warning monitoring and optimized collection strategies; within 10 months the project met its goals, strengthened CMBC’s risk management, laid a firm foundation for Basel II compliance and supported more disciplined, capital-efficient portfolio growth.

China Minsheng Bank

Shen Zhihua

Senior Export of Risk Management