For banks seeking to drive economic growth by financing Small and Medium-Sized Enterprises (SMEs), credit placement must be more than a simple transaction. It is essential to identify where investment will have the greatest ripple effect across the production chain. Without the right tools, finding these "optimal points" is complex.
The Challenge: Identifying the Nodes with the Greatest Economic Influence
The international bank faced the challenge of optimizing its financing programs for SMEs and entrepreneurs. It wanted to ensure that each loan was not only secure from a credit-risk perspective, but also maximized its impact on the commercial network. Traditional methods could not visualize the economic interdependence among applicants.
The Infomedia Solution: Credit Econometric Models and Graph Analysis
Infomedia developed an advanced business network analytics solution, a key application of advanced analytics in banking. The tool is based on Network Theory to map relationships among companies and participants within supply chains.
The model relies on two essential techniques:
By applying this analytics approach, the bank could focus lending on companies whose position in the network would generate greater economic activity and a multiplier effect in their environment.
Results: An Additional 4% in Productive Lending
The precision and strategic visibility provided by network analytics led to significant success. The bank achieved an additional 4% in productive loan placement.
This result not only optimized the profitability of financing programs, but also improved operational efficiency and progress toward the bank's economic-development objectives. It demonstrates how advanced analytics enables smarter allocation of capital and resources.