FICO™ Quick Start Optimization for Credit Line Management
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FICO™ Quick Start Optimization for Credit Line Management

With FICO™ Quick Start Optimization for Credit Line Management, we use our proven optimization technology to develop a credit line strategy that can improve your profitability while limiting exposure, losses and customer attrition. FICO clients have seen incremental profit per account rise to as much as $12 in a year, using our credit line management optimization. The Quick Start service means you see results faster.
Key Benefits
  • Increase profit and decrease losses, calibrating results to your risk tolerance.
  • Implement quickly — in just 8-10 weeks — and realize the benefits of optimizing line increases or decreases faster.
  • Identify "low-hanging fruit" to obtain a significant portion of the benefit you would see with a full-blown custom decision optimization approach, but in a shorter time frame.
  • Build your team’s capabilities with a software tool to explore what-if scenarios and create additional optimized strategies.
Features
  • Decision model that quantifies the impact of your line decisions on customer attrition, revenue, loss and profit. These decision models drive the optimization, which provides a powerful tool for finding the most profitable actions and mapping out an “efficient frontier” of optimal approaches.
  • An initial optimized strategy based on the chosen scenario for line increase, decrease, or both.
  • Detailed optimization reports that show you the potential profit improvement under different exposure and loss-constrained scenarios; key business metrics for optimized scenario and comparison to current strategy; action distributions that show what specific line actions you would take with the optimized scenario; and a swap set report showing differences in actions and targeting between your current strategy and optimized strategy.
  • Optional: A pre-configured application that includes FICO optimization software with a custom line increase or line decrease decision model embedded, which you can use to simulate different optimal operating points and create new line strategies.

One Top 5 UK bank saw 12-month incremental profit per active account rise by $12.36. Across the board, our credit line optimization projects have helped our clients make real gains on top of the results they were already seeing with their credit line strategies.

Using consortium credit card data, Fair Isaac recently conducted an optimization experiment to see if it could improve upon a credit line decrease strategy based on the business-as-usual factors of risk and utilization for a population of non-delinquent (“current”) accounts. As illustrated in the graph below, the BAU strategy decreased 10% of the population and resulted in nearly 3% negative profitability. For the same number of accounts decreased, the optimized scenario was able to turn that loss into a profit improvement of 3%.

Turning a Loss Into a Gain

Efficient Frontier
Optimization can turn a loss (BAU or business as usual) into a gain, by taking into account how line actions—decreases in this case—impact customer attrition, revenue and loss.

 

Speak with a FICO representative about our solutions and your business needs by calling us:

US (toll free): +1 888 342 6336
International: +44 (0) 207 940 8718

Or email us using the form on this page. We look forward to speaking with you.

 

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Optimizing Credit Lines Under Regulations