China Guangfa Bank Credit Card Center (CGB Credit Card Center) is using FICO® Customer Communication Services (CCS) to help reduce its cost of collections and improve customer service across its credit card portfolio of 50 million customers. The business unit has managed to improve the average daily rate of repayment by 2 percent and has collected several hundred million yuan in repayments using the FICO solution. The use of this solution has also resulted in a significant lift in customer satisfaction levels for CGB Credit Card Center. Since the project was launched, the number of complaints the bank receives has dropped to one-tenth of when they were running manual collections. The success of the project has earned CGB Credit Card Center an award from The Asian Banker for ‘Best Self-Service Banking Project in China’. “CGB Credit Card Center has been at the forefront of automated collections for banking in China for many years,” said Mr. Lin... [Read More]
This is a guest post from Rourke O’Brien, Assistant Professor of Public Affairs at the University of Wisconsin-Madison. Does regular consumer access to their FICO® Score influence financial knowledge and behavior? Professors Abigail Sussman, Tatiana Homonoff and I recently completed a multi-year research study with 400,000 Sallie Mae customers. Using a randomized control trial research design, we studied whether student loan borrowers who check their credit scores regularly make better financial decisions and manage finances more responsibly. The answer? An emphatic YES. Kelly Christiano, SVP at Sallie Mae and I had the opportunity to present the findings at this year’s FICO World. Sallie Mae was the first national private education lender to offer free access to quarterly FICO Scores through the FICO®Score Open Access program. Our research found that after one year, student loan borrowers who logged on to view their FICO Score had fewer past due accounts and took steps to establish... [Read More]
A new survey conducted by FICO and 72 Point, who polled 2,000 U.S. adults, found 81 percent don’t see the need for what they consider unnecessary security procedures.
Shanghai Pudong Development Bank Issued More Than 9 Million New Credit Cards Last Year Using FICO Originations Shanghai Pudong Development Bank (SPDB) Credit Card Center, a credit card lending pioneer in China, has increased its customer base using originations powered by technology from analytics software firm FICO. SPDB Credit Card Center’s total number of credit card applications using originations driven by a big data AI analytics strategy has exceeded 9 million, since January 2017. During this incredible growth, SPDB has maintained a controllable risk level while increasing its origination rate more than two-fold to 88 percent of applications. FICO’s big data AI analytics has reduced risk by 50% with an approval rate that is four times higher. For its achievements, SPDB has won the 2017 FICO Decisions Award for Customer Onboarding and Management. The winners of the FICO Decisions Awards were spotlighted at FICO World 2018, the Decisions Conference, April 16-19 in Miami Beach,... [Read More]
Loans issued in days rather than weeks while bad debts reduced to 3 percent of loan book Malaysia’s Credit Guarantee Corporation (CGC), a government and commercial enterprise joint venture, has used FICO’s decision management technology to improve its ability to judge the creditworthiness of small businesses so it can provide them with loans. This direct lending is an expansion of CGC’s usual role of providing loan guarantees to businesses, many of which lack the collateral and track record to obtain regular financing. Since its deployment of FICO® Blaze Advisor® decision rules management system and custom analytic models in August 2016, CGC has reduced non-performing loans to just 3 percent of the loan book and has had only one default. For its achievements, CGC has won the 2017 FICO Decisions Award for Decision Management Innovation. The winners of the FICO Decisions Awards were spotlighted at FICO World 2018, the Decisions Conference, April 16-19... [Read More]
Statnett, the Norwegian transmission systems operator (TSO) for energy, is going to use FICO energy optimization technology to power their models of the future of electricity needs in Norway and optimize the current infrastructure.
FICO and global financial dignity and economic empowerment nonprofit, Operation HOPE, partnered a little over a year ago to help empower consumers through financial literacy. The program enables Operation Hope coaches at more than 100 HOPE Inside locations across the U.S. to share FICO® Scores with clients for free and to provide key insights to enable them to better understand their financial health. We recently had the opportunity to speak at the annual 2018 HOPE Global Forum. At the event, we conducted a survey of attendees during our panel, ‘Unleashing Credit: Credit for the Poor Reimagined,’ to examine the barriers to credit. Among the results from the survey, FICO found that the top drivers of credit barriers include debt-to-income ratio (93%), restrictive lending standards (84%), and gaps in financial literacy (80%). The survey results reinforce the ongoing need to help support personalized financial education and coaching. We look forward to... [Read More]
In our previous blog post, FICO revealed research on the credit behavior of young people with a student loan actively in repayment to determine the behaviors that are driving FICO® Score increases and decreases. Using a nationally representative sample, we identified 10 million scorable consumers age 18 to 30 who had a student loan actively in repayment as of October 2016. To better understand the financial actions driving the “FICO Score increaser” and the “FICO Score decreaser” populations, we looked at the credit behaviors of these two groups across a variety of dimensions such as amounts owed, on-time payments, and searches for new credit. Below is an infographic which provides a more visual representation of our findings.
