Risk & Compliance 5 Core Competencies of Digital Transformation You Can’t Ignore

Aug162017

Guest Post: Today’s blog is from Les Winograd, VP of Client Services at HS2Solutions. He was a featured speaker at our Automotive Mastermind held last week in Silicon Valley. HS2Solutions works with companies such as Domino’s Pizza, Wilson and Zipcar on their digital transformation strategies and spoke to attendees about how this applies to the automotive industry. === In today’s world of ever-accelerating innovation, nimble challengers spring up and disrupt businesses overnight. Keeping pace with the competition and ensuring long-term market relevance can be a daunting task. The one certain in a thick of uncertainty is that the decision to harness the power of digital to drive business results and ensure long-term market relevance is no longer a question of if, but a question of how. Perhaps nowhere is the importance of Digital Transformation greater than the Auto Industry in general, and the car buying process in particular. Companies like Apple, Google, and... [Read More]

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Analytics & Optimization The Future of AI: Smart Machines Will Save Us, Not Destroy Us

FICO 25 years of AI and machine learning logo
Aug162017

To commemorate the silver jubilee of FICO’s use of artificial intelligence and machine learning, we asked FICO employees a question: What does the future of AI look like? The post below is one of the thought-provoking responses, from Shafi Rahman, a principal scientist at FICO, working in San Diego. The most memorable scene in the film 2001: A Space Odyssey is when HAL 3000 turns off the life-support functions of the crew in an attempt to keep itself from getting disconnected. This was my first encounter with what we call artificial intelligence. Then in Terminator, we were introduced to Skynet, a neural network based AI, which raised an army of robots for self-preservation. Hollywood has always portrayed the future of AI in a dystopian, cataclysmic manner. In reality, I believe things will be different — benign and beneficial to the human-kind. In the last 10 years, we have seen huge... [Read More]

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Analytics & Optimization Why We Need Explainable AI (Video)

Box stamped AI
Aug152017

As artificial intelligence reaches new areas such as risk management in banking, explainable AI will become more important. That’s the message FICO’s Derek Dempsey gives in a video interview recorded with Compare the Cloud. Derek, a principal consultant with Fair Isaac Advisors who was named one of the Big Data 100 by DataIQ magazine in 2015, discusses the impact AI and machine learning have had in fraud detection, and the growing use in financial services. Risk management has greater requirements for explaining decisions, Derek says, and this will force AI developers to think differently. For more on this topic, read Scott Zoldi’s blog posts on explainable AI. Watch the video on Compare the Cloud

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Analytics & Optimization Modelling Deposit Price Elasticity: What Data Do You Need?

Analytics on screen
Aug142017

This is the second in a series of blog posts on deposit price elasticity, focusing on the modelling data requirements. There are several different modelling techniques and approaches to measure deposit price elasticity, which is dependent on the actual business problem and model usage. The exact data requirements might need to be amended to account for the modelling technique, but a large number of data items are consistent across all approaches. As with all modelling projects, it is good to initially take a step back and think about what type of information you would expect to be predictive, impact deposit price elasticity, and make you move your savings across different products and / or financial institutions. We would suggest that considering the below fields would be best practice for a deposit price elasticity model development: Product details: Historical interest rate of the product(s) to be modelled, this would include retention... [Read More]

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Analytics & Optimization AI – What Chief Compliance Officers Care About

AI conference logo
Aug092017

Arguably, there are more financial institutions located in the New York metropolitan area than anywhere else on the planet, so it was only fitting for a conference on AI, Technology Innovation & Compliance to be held in NYC – at the storied Princeton Club, no less. A few weeks ago I had the pleasure of speaking at this one-day conference, and found the attendees’ receptivity to artificial intelligence (AI), and creativity in applying it, to be inspiring and energizing. Here’s what I learned. CCOs Want AI Choices As you might expect, the Chief Compliance Officers (CCOs) attending the AI conference were extremely interested in applying artificial intelligence to their business, whether in the form of machine learning models, natural language processing or robotic process automation – or all three. These CCOs already had a good understanding of AI in the context of compliance, knowing that: Working the sets of rules... [Read More]

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Customer Engagement Three Keys to Advancing your Digital Transformation

Digital assets
Aug082017

With today’s proliferation of data, digital transformation (DX) has become more than a hot topic: It’s an imperative for businesses of all shapes and sizes. The collision of data, analytics and technology has businesses, analysts and consumers excited — and scared — about what could happen next. On one hand, everyone from banks to bagel shops and travel sites to tractor manufacturers have found new ways to connect the dots in their businesses while forging stronger, more dynamic customer engagement. Artificial intelligence (AI) has come of age in technologies such as smart sensors, robotic arms, and devices that can turn lights and heat on and off, adjust for changes in conditions and preferences, and even automatically reorder food and supplies for us. However, today’s Chief Analytics Officer (and Chief Data Officer and Chief Digital Officer, for example) faces both the promise and precariousness of digitizing business. While significant opportunities abound... [Read More]

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Fraud & Security PSD2 Glossary – the 50 Terms You Need to Understand

PSD2 logo
Aug072017

It’s not unusual for EU Directives to arrive with a whole host of acronyms and terminology, and PSD2 is no exception. From AISP to XS2A there are some new terms, some terms that have a new meaning in this context, and some established payment terms it’s always worth having a reminder about. When I couldn’t find a glossary to help me understand the terminology, I decided to create one. Or the 50 PSD2 terms, here are my 3 favorites: ASPSP – Account Servicing Payment Service Provider — a tongue-twister to rival Sister Suzie and her shirt-sewing shenanigans! An ASPSP is a Payment Service Provider (PSP) such as a bank or card issuer that provides authorised access to bank account information. For PSD2 they are allowing API access to bank account data for Account Information Service Providers (AISPs) and Payment Initiation Service Providers (PISPs). This makes my top three as I can’t... [Read More]

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Fraud & Security Cybersecurity: To Be (Empirical), or Not to Be?

Hamet with data background
Aug022017

That is the question for cybersecurity risk assessment. FICO has been in the analytics business since our inception back in 1956.  Our founders, Bill Fair and Earl Isaac, had the novel idea that businesses could make better decisions through data. Before anyone thought to call the resulting algorithms “analytics,” they set off to create game-changing approaches to correlating signals with outcomes to help companies manage risk, reduce expense, and maximize opportunities. Bill and Earl began looking for problems they could solve through an empirical analysis of data, and credit underwriting was a use case that was well-suited to the technique. Most credit-granting organizations had credit applications tucked away in filing cabinets (a source of consistent signal data), and most also had a reasonable handle on outcomes – i.e., who was managing credit to terms and who was in arrears or in default. The ability to relate data known at the time of the... [Read More]

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Analytics & Optimization The Future of AI: Redefining How We Imagine

FICO 25 years of AI and machine learning logo
Aug012017

To commemorate the silver jubilee of FICO’s use of artificial intelligence and machine learning, we asked FICO employees a question: What does the future of AI look like? The post below is one of the thought-provoking responses, from Sadat Nazrul, an analytic scientist at FICO, working in San Diego. Looking at the next 20 years, I see us moving well beyond the productivity enhancements AI has brought about so far. With the advent of AI, we will be seeing a renaissance in our own personal lives as well as society as a whole. Healthcare Today, our gadgets have the ability to monitor the number of steps we take, the rate of our heart beat, as well as the contents of our sweat. All this rich information allows a team of doctors, engineers and analysts to monitor our well-being and to maintain our peak performance. Similarly, with innovations in genomic sequencing... [Read More]

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