Banco Pichincha

EFL allowed a 2.7% delinquency rate at 90 days in the group of customers attracted by its psychometric test.

The Challenge

Banco Pichincha, the largest commercial bank in Ecuador, sought to increase its portfolio of customers’ profitability by offering an active product.

Specifically the bank found that based on socio-demographic filters or credit bureau records, it had rejected to disburse a loan to a large percentage of current clients that had credit potential.

The Engagement

Banco Pichincha began the partnership with EFL in late 2013.

After making more flexible some of the criteria previously applied to their customers and conducting a pre-analysis of their ability to pay, Banco Pichincha generated a new customer base that was invited to take the EFL test through various channels.

The Results

Over the course of 18 months, Banco Pichincha approved 19 thousand credit operations, which would have been rejected without the EFL psychometric score.

This group of new customers generates millions of dollars in new revenues and has a 2.7% delinquency rate at 90 days, which is within the bank’s expectation.

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* Default reduction refers to the impact of removing the bottom two quintiles of EFL scorers from the borrowing population