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VTB Bank (Armenia) launches automated system for making decisions on retail loans

YEREVAN, February 1. /ARKA/. VTB Bank (Armenia) launches an automated system for making decisions on retail loans on February 1, the bank’s press office reported on Tuesday.

This system was developed by the banks’ risk managers in under support from VTB 24.

All the decisions are based on clear rules – credit scoring.

“This new approach is beneficial to either the bank or its clients,” the bank’s pres release says.

Thanks to this system, clients will receive fast responses from the bank.

The bank views this as a big step toward standardization of loan processes.

“Despite the fact that lending is one of the oldest banking functions, the least standardization is seen in this very area,” Valery Ovsyannikov, director general and chairman of the bank’s directorial board, said on Tuesday. “That is why our large backbone bank viewed achievement of a real progress in regulation of this process as somewhat of a challenge, which we have successfully overcome thanks to this automated system.”

He said that the bank viewed the retail market as a top-priority segment having two important merits.

“First is a high-technology market, and we had to develop an automated loan decision system therefore,” he said. “Second is that retail express lending is a good source for attracting new desirable clients.”

Ovsyannikov said that centralization of the lending back office and registration of all transactions in one center enabled the bank to make additional contribution to enhancement of financial awareness of clients.

It will make borrowers to acknowledge their personal responsibility for decisions, and this will upgrade credit culture, which will have a positive impact on Armenian retail lending market as a whole.

VTB Bank Armenia joined VTB Group in April 2004. VTB, the second largest bank of Russia, holds 100% of shares of VTB Bank (Armenia). VTB Bank (Armenia) has 68 branches in Armenia. Of them, 24 are in Yerevan and 44 in provinces. –0–

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