As part of a broader initiative to modernise its lending infrastructure and migrate to the cloud, Lloyds Banking Group (LBG) has adopted the FICO Platform to support over £7 billion in annual loans.

By making use of real-time data ingestion and advanced analytics, the platform has contributed to a 2.5% increase in credit card approvals, a doubling of new-to-bank consumer loan customers, and the resolution of more than 50 system limitations.

These improvements have helped the bank make lending decisions more quickly, intelligently, and efficiently across various products.

The shift to a cloud-based infrastructure was driven by the limitations of LBG’s ageing systems, which had begun to hinder the bank’s ability to scale operations and meet changing customer expectations.

The fragmentation of its previous systems also led to inconsistencies across digital channels and made it challenging to integrate new data assets necessary for responsible lending, scalability, and sustainable growth.

“It became clear that our lending infrastructure was becoming a barrier to the strategic growth ambitions of the bank,”

said Ian Rockliffe, Head of Consumer Credit Risk Transformation at Lloyds Banking Group.

“We needed the ability to scale to meet our customers’ needs within the digital channels. We also needed to bring in new data assets to support growth, sustainability and enhance our responsible lending position.

“Working with FICO we have been able to simplify the whole technology estate and implement a market-leading cloud-based infrastructure. This delivers major technology enhancements and other significant benefits. We serve one out of every two households in the UK, and these changes help us say ‘yes’ to more customers.”

The transformation has led to several firsts for LBG, including the introduction of a new cloud-based application viewer for underwriters and other teams.

Since the implementation of the FICO Platform, LBG has also carried out a significant bureau data upgrade in a matter of weeks, a process that previously took months, demonstrating the platform’s role in improving innovation speed and operational efficiency.

Nikhil Behl, President of Software at FICO, commented:

“Not only has the new integration helped LBG to fundamentally change its technology, the Group has also adopted a truly agile approach when delivering technical and business change. Upgrades no longer take months or years, but can be completed within minutes and days, providing significant operational efficiencies.”

The adoption of the platform has also allowed LBG to mathematically optimise its strategies and rules, and to share logic and components across different portfolios.

This has led to a more consistent customer experience and has accelerated the pace at which the bank can implement changes.

Featured image credit: edited from freepik