Category Archives: Customer Engagement

Customer Engagement Analytics Achievers Wanted for FICO Decisions Awards

FICO Decisions Awards logo
Jul052017

A company that solved an “unsolvable” wind farm optimization problem. An automaker that uses analytics to keep more delinquent customers in their cars. An airline that uses optimization throughout its business to improve customer service and efficiency. These are just some of the past winners of the FICO Decisions Awards – and now it’s time to find the next set of innovators. We’re looking for companies that are achieving outstanding success using FICO analytics and decision management solutions. Awards will be presented in six categories: Artificial Intelligence and Machine Learning Customer Onboarding and Management Debt Management Decision Management Innovation Fraud Control Regulatory Compliance. Winners will receive recognition at FICO World, which will be held April 16-19, 2018, in Miami. Winning implementations will be featured in conference activities, and two representatives of each winning company will receive complimentary conference passes. Nominations are due September 1, and winners will be announced in... [Read More]

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Customer Engagement How Secure Are Your Customer Communication Channels?

Mobile phone with warning message
Jul042017

We are addicted to our phones from the time we wake up until we go to bed — and apparently, even after that. According to recent reports: One in three UK adults – and half of 18-24 year olds – said they checked their phones in the middle of the night, with instant messaging and social media the most popular activities One in 10 smartphone owners admitted reaching for their phone as soon as they woke up – with a third grabbing the device within five minutes of waking. Given this, the best way to contact a customer is clearly by phone, particularly the smartphone as it has a range of channels available on a single device. This would also be the ideal way to quickly alert a customer to a potential fraudulent transaction. But this raises a critical question: How secure are the channels of communication with each customer?... [Read More]

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Customer Engagement Telecom — Is Your Digital Strategy Ruining Your Customer Experience?

Angry emoji
Jun212017

My telecommunications service provider put me through two hours of customer service hell when I was upgrading my set-top box. What should have been a simple plug-and-play switchover turned into an arduous journey through various customer service units. At no stage did I get the impression that there was a central location for my data, as I had to repeat my address and account details several times and rerun security checks across automated and human channels. This kind of friction in the customer experience is all too common, no matter what your spend with the provider. It is little surprise that UK service providers’ churn rates for multi-play packages can be up to 20% per year, with the cost to recruit a customer approximately £300 to £400. Compare that experience to digital-first companies like Amazon and Apple, which have remarkable stickiness and growth, where the experience is frictionless and most... [Read More]

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Customer Engagement Video: Scotiabank Cencosud Cuts Model Development Times by +50%

Cencosud video interview image
Apr192017

Ever wonder how one of Chile’s largest retailers retains over 3 million customers? We asked Scotiabank Cencosud’s Claudia Guerrero, Model Development Manager of Risk Management in its Retail Finance division. In this Cencosud video, Claudia discusses how the retailer relies on a comprehensive, integrated credit portfolio management solution developed by FICO. This enables it to make better customer decisions, from originations through customer management. In particular, FICO® TRIAD® Customer Manager successfully manages risk-based strategies for credit line increases and cross-selling, and FICO® Model Builder has helped Scotiabank Cencosud cut model development times in half, while still retaining predictive strength — which the company sees as a tremendous competitive advantage. For more information, read the Cencosud case study or visit the FICO Model Management and Compliance solution page.

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Customer Engagement Afraid of Small Business Lending? Mid-Market Lenders Shouldn’t Be

Small Business Lending for Mid-Market
Apr052017

Some 500,000 – 600,000 new small businesses emerge each year, according to recent U.S. Census Bureau data, and they supply over 60% of jobs. While we’ve expected that number to grow and fuel the economy, it is starting to decrease according to recent reports by TIME and CNN Money. Is small business growth slowing due to lack of innovation and initiative? That seems unlikely. According to a survey done by Insureon, 82% of small businesses expect to grow in 2017. Whether buying new equipment or furniture, hiring, moving, or adding products/services, businesses are planning to expand. So what’s really standing in the way? FICO’s mid-market bank and credit union clients tell us that it remains difficult for entrepreneurs and small business owners to acquire the credit they need to fuel their growth plans. The reasons for this are two-fold. First, there is often little traditional commercial credit history available on... [Read More]

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Customer Engagement Adapting Mortgage Loan Price Optimization to Building Societies

House image with analytics
Apr032017

One of the hottest analytic technologies in mortgage lending is price optimization. This is the application of advanced analytics to pricing strategies, in order to determine the ideal price for every customer that maximizes profitability, given factors such as take-up, affordability, etc. That’s great for banks, but what about building societies and credit unions? If profit isn’t your primary goal — if you exist to serve your members — does price optimization have a place? The answer is definitely yes. Using pricing optimization, building societies and credit unions can develop strategic mortgage offers that target specific objectives, such as customer retention, without hurting the bottom line and ensuring that targets around Treating the Customer Fairly are met. This kind of optimization can really pay off – making an appropriate offer, to the right customer at the right time, typically results in 10-15% higher retention of existing customers. When building societies... [Read More]

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Customer Engagement Financial Health: The Key to the Future of Customer Acquisition

Feb092017

For all the differences between traditional banks and new online lenders, there is one business challenge that unites both groups: acquiring new customers. Despite the advancements made by online lenders in many traditional financial services processes (such as account opening), the methods most online lenders use to advertise to and acquire new customers come straight out of the bank marketing playbook – third-party brokers, television ads, and even direct mail solicitations. While online lenders experiment with offline marketing tactics, banks are aggressively ramping up their online marketing efforts, with total digital ad spend by U.S. financial institutions predicted to top $10 billion in 2019 (up from $5.3 billion in 2013). This shift is being motivated by continuing declines in branch activity and the increasingly-evident risks of branch-based sales strategies. The result is that both groups are converging on a set of established acquisition techniques that are compatible with a post-branch... [Read More]

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Customer Engagement 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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Customer Engagement Analytics in Action: Yarra Valley Water and Application Processing

Yarra Valley Water logo
Dec222016

As 2016 draws to a close, I am grateful for the many, many ingenious ways customers use FICO® products to solve business problems. Clearly, FICO World 2016 was a bonanza of an opportunity for me to learn exactly how. Customers traveled to our event, held last April in Washington, DC, from all over the world. The folks from Yarra Valley Water, in Melbourne, Australia, made one of the longest journeys, and I enjoyed hearing the retail water utility’s story at FICO World’s closing panel discussion. Yarra Valley Water uses FICO® Blaze Advisor® decision rules management system and FICO® Decision Management Suite to reduce the time required to the water application process from months to minutes, without adding staff. That’s pretty amazing––watch the video below. An early adopter of automation Yarra Valley Water provides water and sewage service to 1.8 million residents and over 50,000 businesses. In 1995, it worked with... [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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