All posts by FICO

Risk & Compliance NBC News Probes Two Changes That Could Boost Credit Scores

NBC News Credit Scores Video - retro reporter image
Mar202017

NBC Nightly News recently aired coverage where they examined two changes that could boost credit scores for millions of US consumers. The news agency examined last year’s announcement of FICO® Score XD, aimed at the millions of US consumers who otherwise cannot receive a FICO® Score due to insufficient or stale data in traditional credit bureau files. NBC News discussed how the new score leverages alternative data, such as utilities payments and wireless and cable bill payment history, to determine credit scores. And starting July 1, the three major credit reporting agencies are dropping certain negative information from credit reports, including tax liens and civil judgments. NBC Nightly News shares FICO estimates that 12 million consumers will see their FICO® Scores increase – although, roughly 11 million of these consumers will see only a slight score increase of less than 20 points. View the NBC Nightly News video: Changes to Credit... [Read More]

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Analytics & Optimization Is Your Analytics Supply Chain Broken?

Simplified view of an analytics supply chain
Feb202017

This is a guest post from Thomas H. Davenport and FICO’s Zahir Balaporia. A version of this post was also published on Data Informed. Businesses across many industries spend millions of dollars employing advanced analytics to manage and improve their supply chains. Businesses look to analytics to help with sourcing raw materials more efficiently, improving manufacturing productivity, optimizing inventory, minimizing distribution cost, and other related objectives. But the results can be less than satisfactory. It often takes too long to source the data, build the models and deliver the analytics based solutions to the multitude of decision makers in an organization. Sometimes key steps in the process are omitted completely. In other words, the solution for improving the supply chain –  advanced analytics – suffers from the same problems that it aims to solve. Therefore, reducing inefficiencies in the analytics supply chain should be a critical component of any analytics initiative... [Read More]

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Collections & Recovery How Thames Water Cut Bad Debt by 11% in a Year

Thames Water logo
Feb072017

Think of collections and most people think of angry phone calls and repossessed cars and homes. But what happens when you provide an essential service you can’t switch off? That’s the case for Thames Water, the UK’s largest provider of water and wastewater services, which uses technology to increase results. Thames Water has reduced bad debt by 11% in the last 12 months by innovating its collections process using FICO® Debt Manager™ solution. For its achievement, Thames Water has been awarded the FICO Decisions Award for Debt Management. “The introduction of Debt Manager 9 has allowed us to design our treatment strategies from the bottom-up — rather than building strategies to the system limitations, we built them to the business and customer needs,” said Ross Betts, Thames Water’s collections system, strategy & segmentation manager. “This program has been hugely successful, not least because it managed to implement several ambitious goals... [Read More]

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Analytics & Optimization Top 10 of 2016: Our Blog Posts You Liked Best

Jan032017

With 2016 recently coming to a close, we took a look back to uncover which topics you – our blog readers – gravitated toward last year. Chief among your interests were analytic innovation, credit risk, regulatory compliance, customer experience and mobile payments. Here’s a recap of our top 10 most popular posts published in 2016: US Credit Quality Rising … The Beat Goes On – Ethan Dornhelm shares FICO research showing how US consumer credit quality continues to climb. Why Is Customer Experience So Hard to Explain? – For an organization to improve customer experience, here’s why everyone needs to start on the same page. 4 Analytic Predictions for 2017 – From Killer Devices to AI Hype – FICO Chief Analytics Officer Scott Zoldi shares his predictions for analytics trends and burning issues in 2017. Your Customer Experience Management Is SO Immature! – Roughly 80% of companies are customer experience... [Read More]

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Analytics & Optimization Video: Analytics Spur the Entrepreneurial Spirit at Georgetown

analytics-at-georgetown
Dec282016

Ever wonder how students use analytics to become entrepreneurs? At Georgetown University in Washington, D.C., Students of Georgetown, Inc. – commonly known as “The Corp” – is the largest entirely student-run non-profit corporation in the world, with seven subsidiary companies generating annual revenues in excess of $5 million. As participants in the FICO Academic Engagement Program, Georgetown students were given the opportunity to analyze Big Data from their seven storefronts using some of the industry’s most widely used analytics tools. Watch the video to find out how The Corp leveraged their findings from FICO analytics to monitor customer behavior and improve sales.

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Risk & Compliance Can the Internet Revolutionize the Finance Industry in China?

Dec232016

This was the question FICO’s Dr. Andrew Jennings was challenged to answer as a guest speaker on a PBOC sponsored panel at The Third World Internet Conference in China. While one would assume the answer is ‘yes’, the world of FinTechs, P2P lending and online financial services have suffered quite a few stops and starts in China. Investment bubbles driven by consumers seeking higher returns, embryonic regulation and a patchwork of lackluster risk management practices persist in a nation undergoing a massive program of urbanization. Jennings spoke about the dual problems of reckless lending and the challenge of improving financial inclusion in China. He proposed that both can be solved with clever, analytically driven credit assessments that use new sources of data. “When we look at the data in China, there is not a single data source that can provide us with a predictable credit score for everyone. So the... [Read More]

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Customer Engagement TBC Bank Wins Award for Omni-Channel Customer Engagement

TBC Bank Logo
Dec212016

Omni-channel customer management is something you read about more often than you see it. That’s one reason that TBC Bank won the 2016 FICO Decisions Award for Customer Onboarding and Management. TBC Bank is the first in the country of Georgia to introduce omni-channel capabilities to improve its originations strategy. TBC customers can start origination processes through a call center and finish them in an ATM, kiosk or branch for ultimate convenience and efficiency. In less than a year after deploying FICO® Origination Manager, TBC Bank has seen: The loan approval rate rose from 50 percent to 70 percent, an increase of 40 percent The time to decision a credit application decreased from one business day to 15 minutes Time to market for application changes dropped by 85 percent, as 90 percent of the required system changes are done by the in-house development team The cost to originate a loan... [Read More]

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Fraud & Security FICO Receives 2017 CSO50 Award from IDG’s CSO

CSO50 logo
Dec132016

FICO has received a 2017 CSO50 Award from IDG’s CSO for for its next-generation application security program, which accelerates the delivery of robust, secure applications. “Attackers routinely test the application layer for vulnerabilities, so it’s critical to have confidence in the software that handles sensitive information and is used to make critical business decisions,” said Vickie Miller, vice president, chief information security officer. “Security is about risk management, and having a seamless process to automatically test and manage the security of an application through its lifecycle means we don’t have to sacrifice security for speed and can demonstrate ROI.” Miller and her team developed a framework aimed at providing lifecycle visibility of all the software security initiatives for all FICO’s solutions, across the company. The software empowers both product development and the security team to understand and manage security progress, and to benchmark security practice improvement against industry standards. Launched... [Read More]

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Customer Engagement Video: TBC Bank Deploys Customer-Centric Originations

Nov232016

Ever wonder how TBC Bank cut credit decision times from one day to fifteen minutes? In the video below, Giorgi Alibegashivili, strategy project manager at TBC Bank, talks about growing competition and the need to respond quickly to market changes, noting: “In today’s digital world, it’s important to be agile.” He explains why the bank turned to FICO® Origination Manager, which supports connected decisions across the entire lending lifecycle for a more holistic view of the customer. In a matter of months after implementation, TBC Bank significantly sped up time to decision, increasing customer satisfaction and driving competitive advantage. For more information, read the TBC Bank case study. And read our blog series on best practices in originations: What Does Best-in-Class Credit Originations Look Like? Are Your Credit Originations Good, Better or Best? Originations Software: Investing for Good Times and Bad

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Customer Engagement Video: Nationwide Building Society Deploys Unified Customer-Centric Risk Platform

nationwide-customer-centric-risk-video-featured-image-blog
Nov102016

With 15 million members and more than £190 billion in assets, the UK’s Nationwide Building Society is the largest building society in the world. Due to its growth, Nationwide’s platform for evaluating and processing loan applications struggled to keep pace with changing market conditions, regulations and volume. Nationwide wanted to incorporate multi-bureau data into a single strategic risk infrastructure using advanced decision management technology. In this video, Andrew Jackson, Head of Credit Risk Measurement at Nationwide, explains how the company built a single risk platform to solve the problem and deliver superior customer experience. “We can be quicker to market with making changes. It used to take a number of weeks to make a pricing change for a personal loan product. We can now do that within a number of hours.” In addition, the approach has already added millions of pounds of revenue and savings. For more information, read the... [Read More]

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