Customer Engagement eBay Enterprise & FICO Improve the Purchase Journey

eBay Post
Sep152014

“I recently bought a Guardians of the Galaxy action figure for a kid’s birthday, and now I’m being stalked online by Star Lord.” An innocent purchase decision turned into unwanted and annoyingly inappropriate spam. Thus is the complaint of the modern customer. A customer’s journey to a purchase decision is highly complex. Consumers are now engaging in much more iterative and dynamic journeys. And marketers are being pressured to be more receptive, responsive and accountable to the bottom line, while battling stiff competition and trying to get every penny worth of value from increasingly expensive communications channels. Commerce marketers need to navigate this asteroid belt. They need to rapidly analyze and act on large amounts of data from multiple sources, with precise understanding of the value and timing of each step of the customer journey. They must make decisions in realtime, optimize offers and target the right channels, with a... [Read More]

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Collections & Recovery Meet the Customer-Centric Collector – A Superhero for Our Time

Meet the Customer-Centric Collector – A Superhero for Our Time-thumb-3
Sep112014

With the challenges in the debt management space these days, it sometimes seems like you need superpowers to succeed. But before you start looking for a radioactive spider or a handy gamma-ray machine, check out FICO’s tongue-in-cheek new infographic, The Customer-Centric Collector Rises. (Yes, I realize I just mixed my Marvel and DC metaphors, comics fans.) The superpower we’re talking about is the ability to understand how to motivate a customer to pay, using the right message and the right channel. Rather than brute force, the customer-centric collector uses their understanding of the customer to get great results. This ability comes just in time, as overdue debt grows, traditional tactics falter, customers complain and regulators turn up the heat. As our infographic notes, some 35 percent of US adults with a credit file have debt in collections. About 20 percent of delinquent debt is collected, down from 30 percent a... [Read More]

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Fraud & Security ChannelNews Asia Video: Fighting Online Fraud

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Sep102014

Asian consumers are set to overtake North America this year in terms of purchases made online, making it the largest in the world as an ecommerce market. In this video, FICO’s Adam Davies talks to ChannelNews Asia about what banks are doing to protect consumers from fraud and security threats, including by using predictive analytics. To view the video, click on the image above or view it here.

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Risk & Compliance Has Russians’ Credit Health Reached Its Nadir?

risk-meter
Aug272014

As reported today by FICO and NBKI, Russia’s credit bureau, Russian borrowers’ credit health has been falling for two years, and reached a new low in July. The FICO® Credit Health Index had reached 98 points, the lowest level since the Index began in 2008, and two points lower than the previous low five years ago.   Why? FICO and NBKI believe this is the result of the credit market expansion. The FICO Credit Health Index measures Russia’s overall credit health, based on the percentage of consumer loans and credit cards reported to NBKI as delinquent by more than 60 days. Expansion of unsecured credit — which generally has higher delinquency rates — combined with a slowing of new accounts has caused the index’s erosion. When will this fall stop? It could be soon, according to Alexander Vikulin, CEO of NBKI. “The quality of new loans is high, based on... [Read More]

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Risk & Compliance FICO® Scores: Just Like Mikey – They Like It!

Just Like Mikey – They Like It thumb-2
Aug212014

The following guest post was written by Caitlyn Ramey, Director of Marketing at First Bankcard, a division of First National Bank of Omaha Even if you’re not a child of the 1970’s, you may still remember the Life cereal commercial where Mikey’s siblings get him to try what they deem to be a boring cereal that’s supposed to be good for you (so of course they don’t want to try it). They foist it off on little Mikey and are incredulous when he digs in and Mikey likes it! A kid eating healthy cereal; who would’ve thought?! Well, now we all know what’s good for us, right? Eating fruits and veggies, exercising, getting enough sleep, supportive friendships, etcetera, etcetera. Those of us in the financial services industry would say that your credit health is also very important, but how do you know if your credit is in good shape? It’s... [Read More]

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Risk & Compliance More Models, More Regulations, More at Stake

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Aug182014

To some degree, we’re living in a world where we are cursed with our own success. Financial institutions have seen tremendous benefits from analytics, and as a result, they are using predictive models on an increasingly broader scale, to measure capital reserve requirements and manage complex customer decisions. But as my rap doppelganger would say: “More Models, More Problems.” The greater complexity and number of predictive models in use makes it even more difficult to track and manage model performance, not to mention comply with regulatory requirements. Since the financial crisis, banking regulators have increased their scrutiny of how institutions use predictive analytics. These days, regulators are not only concerned with the safety and soundness of the analytics themselves, in terms of how the models are built and whether they are still validating. Regulators are also focused on the impact of the decisions—that is, who gets a particular decision and... [Read More]

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Fraud & Security In European Fraud, Size Isn’t Everything … Or Is It?

In European Fraud Size Isnt Everything thumb
Aug142014

There’s been a great deal of interest in—and even some confusion with—the findings of our latest European fraud map. Some observers have commented that, whilst the card fraud trends may be interesting, the underlying messages are somewhat mixed. The European card industry has long praised chip and PIN technology as the antidote to historically spiralling card fraud losses in areas such as counterfeit and lost and stolen—and now (finally) the US has followed suit with its own chip card issuance and acceptance plans. And yet, the overall levels of European card fraud, in absolute terms, are back on the rise. This seems like a contradiction. Dig a little deeper, and it is evident that the robust European chip and PIN defence saw fraud attacks evolve and mutate rather than be eliminated. Just like a snow plough on a snow-laden road, whilst the path immediately ahead is cleared, the displacement merely... [Read More]

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Fraud & Security Who Wants Automated Fraud Alerts? 91% of People

Who Wants Automated Fraud Alerts-thumb-2
Aug112014

In light of FICO’s European fraud map, published last week, we know fraud is on the up! Now the debate is over what to do about it. One reason for the rise in losses is a focus on the customer experience, as FICO’s Martin Warwick has explained. Banks in the UK and some other countries brought fraud levels much lower, then focused on how to make the purchase process much more streamlined. This has allowed fraud losses to rise. Martin Warwick has suggested that banks will now look at how they can bring losses back down, including through automated contacts and verification. This seems obvious enough, but has prompted some publications (perhaps desperate for a headline) to suggest that consumers will be barraged by “annoying phone checks” to verify transactions are genuine. We beg to differ. A recent FICO survey found that 91% of participants were happy with auto resolution,... [Read More]

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