FICO® Application Risk Models
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FICO® Application Risk Models

FICO Application Risk Models provide an immediate, cost-effective way to measure consumer applicant risk for a variety of portfolios and market segments. Unlike custom models, these models are ready now for your use, and can add to the benefits lenders receive from using FICO® scores for risk assessment.
Key Benefits
  • Make more profitable lending decisions
    Some 80% of measurable risk is decided at the time of origination. Get a better assessment of risk to make smarter acceptance, pricing and cross-sell decisions.
  • Accelerate deployment of risk assessment
    Because they are predeveloped models based on pooled data, FICO Application Risk Models can be delivered and deployed in a fraction of the time needed for custom model development.
  • Take a broader view of risk
    Application Risk Models complement your use of FICO scores by analyzing application data to score applicants. They can be used with FICO scores to increase the precision of your decisions.
Feature Highlights
  • Specific models for different segments
    With the latest version of Application Risk Models, 24 models are available for specific industry portfolios, such as student lending, direct subprime auto and revolving credit.
  • Analysis of application data
    Our models analyze both lender applicant data and data from credit reporting agencies, including the FICO score. This provides a more robust picture of applicant risk.
  • Reject inference
    Our models use reject inference to statistically infer the behavior of unbooked (rejected) applicants, yielding stronger predictive models.
  • Powerful prediction based on pooled data analysis
    Application Risk Models are developed from FICO's vast proprietary databases, using multiple modeling and data analysis techniques.
  • Intuitive reason codes
    These reasons, calculated by the model along with a score, explain the most important factors influencing an applicant's score. They are used to assist "adverse action" notification and can be used in responding to consumer and legal inquiries.
Versions
  • Model types
    FICO Application Risk Models version 3.0 includes US model types for student installment, student credit card, direct subprime auto, direct auto, direct recreational, indirect subprime auto, indirect auto, indirect recreational, installment, revolving and home equity. There are also seven models available for Canadian lenders.
  • Standalone or embedded models
    Application Risk Models can be delivered as standalone models for use in an application processing system. Most of the models are available as part of the LiquidCredit® service.

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