Business Editors/High Tech Writers
CARY, N.C.--(BUSINESS WIRE)--Aug. 19, 2002--U.S. Bancorp
(NYSE:USB), the eighth-largest financial services holding company in
America, has signed a multi-year agreement with SAS, the leader in
business intelligence, to improve scoring of new credit applications
and existing accounts.
A SAS customer for more than 20 years, U.S. Bancorp selected
SAS® Credit Scoring to improve credit decisions and reduce credit
loss, which will increase company profits.
SAS Credit Scoring helps banks reduce write-offs by giving them
the capabilities needed to build and maintain an in-house credit
scorecard-development process. The solution enables lenders to
develop, implement and validate scorecards more quickly and
inexpensively, with more flexibility than an outsourcing alternative.
Banks can then enter new markets more rapidly, as well as maintain
acceptable risk levels in existing markets. Leveraging both
application and behavioral scorecards, banks can assess risk for
existing customers and provide a basis for scoring loan applicants for
virtually all lending lines including credit card, personal, home
equity, mortgage, auto, etc.
U.S. Bancorp expects to gain a significant competitive advantage
by using SAS Credit Scoring to:
-- Shorten the time frame from development to implementation of
-- Segment customer populations into high-reward and high-risk
customers quickly and accurately, and
-- Increase the number of scorecards the bank can develop
in-house to better segment customers for targeted marketing.
The reduced turnaround time for the development, implementation
and validation of new scorecards and the ability to monitor existing
scorecard performance allows U.S. Bancorp to respond more swiftly to
business development opportunities and pressing strategic initiatives.
By bringing these credit services in-house with the SAS solution,
U.S. Bancorp's risk management group can understand the specific risk
characteristics that lead to delinquency, default and, ultimately, bad
debt. They can also leverage the SAS solution to both transform their
various risk models into
points based scorecards and to make
appropriate approval criteria without relying on external scorecard
development services. Moreover, U.S. Bancorp will be able to validate
and test performance of acquired credit scorecards with greater ease.
SAS Credit Scoring provides U.S. Bancorp greater flexibility in
segmenting portfolios to improve the accuracy of its credit decisions
on both the origination and servicing side of the business.
With SAS Credit Scoring, my team can develop and implement
scorecards faster, cheaper, and with greater accuracy for an optimal
risk/reward segmentation, said Rajinder Singh, senior vice president
of risk/reward management at U.S. Bancorp.
In addition, my risk
managers will be armed with an efficient tool to identify new
opportunities for profitable growth and for rigorous monitoring of the
scorecards' performance. We naturally looked towards SAS for these
U.S. Bancorp expects to shrink its credit-related losses by
leveraging SAS Credit Scoring with the internal modeling and risk
management expertise of its risk management group.
Based on our
successful history of partnering with SAS, I am confident that this
new technology will enable us to be more effective at optimizing our
risk/reward trade-offs by reducing the loss rate and increasing the
returns on our various portfolios, said Singh.
U.S. Bancorp recognizes that SAS Credit Scoring provides critical
intelligence capabilities to address a specific business need in the
banking industry, said Ellen Joyner, worldwide strategist for
financial services at SAS.
Their risk managers can mitigate credit
losses which directly affects their organization's bottom line.
About U.S. Bancorp
Minneapolis-based U.S. Bancorp (NYSE:USB), with assets in excess
of $173 billion, is the eighth-largest financial services holding
company in the United States. The company operates 2,131 banking
offices and 4,818 ATMs, and provides a comprehensive line of banking,
brokerage, insurance, investment, mortgage, trust and payment services
products to consumers, businesses and institutions. U.S. Bancorp is
home of the Five Star Service Guarantee which assures customers of
certain key banking benefits and services or customers will be paid
for their inconvenience. U.S. Bancorp is the parent company of U.S.
Bank. Visit U.S. Bancorp on the Web at www.usbank.com.
SAS is the market leader in providing a new generation of business
intelligence software and services that create true enterprise
intelligence. SAS solutions are used at more than 38,000 sites -
including 98 of the top 100 businesses on the Fortune 500 - to develop
more profitable relationships with customers and suppliers; to enable
better, more accurate and informed decisions; and to drive
organizations forward. SAS is the only vendor that completely
integrates leading data warehousing, analytics and traditional BI
applications to create intelligence from massive amounts of data. For
more than 25 years, SAS has been giving customers around the world The
Power to Know™. Visit us at www.sas.com.
SAS and all other SAS Institute Inc. product or service names are
registered trademarks or trademarks of SAS Institute Inc. in the USA
and other countries.®indicates USA registration. Copyright©2002
SAS Institute Inc. Cary, NC, USA. Other brand and product names are
trademarks of their respective companies.
CONTACT: SAS, Cary
Kris Balic or Mike Nemecek, 919/531-0624 or 919/531-5140
Kris.Balic@sas.com or Mike.Nemecek@sas.com
KEYWORD: ARIZONA CALIFORNIA COLORADO CONNECTICUT FLORIDA GEORGIA
ILLINOIS INDIANA KANSAS LOUISIANA MARYLAND MASSACHUSETTS MICHIGAN
MINNESOTA MISSOURI NORTH CAROLINA NEW JERSEY NEW YORK OHIO OKLAHOMA
OREGON PENNSYLVANIA TENNESSEE TEXAS VIRGINIA WASHINGTON WISCONSIN
INDUSTRY KEYWORD: BANKING COMPUTERS/ELECTRONICS INSURANCE
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