CUSTOMER STORY Piraeus Bank Group balances credit risk, achieves cost and time savings with SAS ® Toula Efthymiou, Director of Credit Risk and Capital Management ■ Industry In today’s turbulent economy, rigorous Implementing automated credit scoring Banking and accurate credit risk management is resulted in cost and time savings, and critical to mitigating exposure. That’s why laid the foundation for more-informed ■ Business Issue Piraeus Bank Group uses SAS® Credit decision support. Scoring for Banking. With SAS, the bank Maintain appropriate levels of has streamlined and automated the way “With SAS, we have achieved significant credit risk to grow in an ailing it collects and manages risk data, economies of scale in terms of resources, economy; automate and integrate optimizes model development, and personnel cost and time,” Efthymiou says. data management, reporting, and produces reports with greater speed and “As an example, we can now implement a model development and validation. accuracy. The result? Cost and time statistical analysis at least 30 percent savings – and continued vitality even in faster than before. Additionally, at an ■ Solution hard times. economic analysis level, the process is SAS® Credit Scoring for Banking now far less time consuming.” Piraeus Bank Group - one of Greece’s ■ Benefits most dynamic and active financial Growing business, despite the economy Save time and costs through institutions - comprises a network of With the recession, Piraeus Bank Group efficiency gains, such as reducing companies that cover all financial and knew that it was more important than data analysis and report generation banking activities in Greece. While it ever to shield itself from too much credit time by more than 30 percent. has a growing presence in the global exposure that could result in higher financial centers of London and New default rates and charge-off percentages. York, Piraeus Bank Group’s activities are focused in Southeastern Europe The bank sought a technology solution and the Eastern Mediterranean region. that would quickly and accurately support decisions to maintain the right Processing and integrating data from the level of exposure to avoid losing bank’s core systems with separate business and revenue. platforms posed challenges for Piraeus Bank Group’s risk team, says Toula With SAS, Piraeus Bank Group now has Efthymiou, Director of Credit Risk and an automated credit-scoring solution Capital Management. Managing credit that streamlines reporting processes risk and providing optimum management for faster distribution of more accurate of the bank’s capital resources – the decision-critical intelligence, says primary duties of her division – became Efthymiou. The solution provides a even more challenging when Greece’s single platform for statistical analysis economy suffered a brutal hit at the and data mining, data collection and outset of the global recession. management, reporting and model development. Better analytics in 30 percent less time Despite Greece’s economic woes, Piraeus Bank Group has managed to strengthen its position in the market. “We have achieved significant economies of scale in terms of resources, personnel cost and time.” Toula Efthymiou Director of Credit Risk and Capital Management Division, Piraeus Bank Group As a result, Efthymiou adds, Piraeus better understanding of the specific risk Efthymiou says her employees have Bank Group has strengthened its characteristics and subsequent embraced their SAS solution, delighted already pre-eminent position in Greece’s attributes of our customers’ profiles that with its user-friendliness and speed. banking system. lead to delinquency, default, and And they are eager to expand their ultimately, bad debt.” existing platform know-how. In fact, Analytics with a view by exploring the new analytics modules “SAS has provided us an integrated Efthymiou’s division is using SAS to in the solution, some users have environment to totally control credit develop and implement methodologies discovered new insights within the data risk,” Efthymiou says. “Now we can that connect credit performance with that enable faster decision support for perform data mining, sophisticated economic cycle status and characteris- senior managers. statistical analysis and model develop- tics. This capability allows the bank to ment quickly and accurately in order to manage credit cycles proactively, “With the success we’ve had so far,” assess and control risk within existing according to current economic and Efthymiou says, “I foresee using the credit portfolios. Moreover, through business conditions. solution in the bank’s other divisions.” enterprise data access and collection, as well as predictive analysis, we’ll get a SAS Institute Inc. 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