Case Study: Cathay United Bank reduces losses by US$1.6M and accelerates retail lending with FICO's Global FICO® Score

Global FICO® Score also allows clients to differentiate its offer to the risk profile of the customer

Cathay United Bank, Taiwan’s second-largest credit card issuer with more than 3.2 million cards, wanted to grow aggressively in retail lending but faced two main challenges: processing a high volume of credit decisions efficiently and managing rising risk across credit cards, mortgages, auto and other retail products throughout its branch network.

The bank adopted the Global FICO® Score and a dual-score matrix (credit bureau FICO scores plus internal application scores) to automate and sharpen risk assessment and decisioning. Implemented in 2005, the solution enabled more granular, consistent origination and account-management decisions, allowed the bank to process about 1,600 credit-card applications daily, roll out scoring across its retail portfolio, and reduce losses by US$1.6 million annually.

Cathay United Bank

Lola Chung

Senior Vice President and General Manager Risk Management Department