Category Archives: Customer Engagement

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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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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Customer Engagement Are Banks Embracing Public Cloud?

analytics in cloud
Oct282016

Banking is one of the most regulated industries in the world, often saddled with antiquated regulations that are not keeping up with the digital world. Many believe these regulations have kept banks away from the benefits of cloud computing, in particular services hosted on a public cloud. But that is changing. In recent years, FICO has been democratising analytics and enabling organisations of all sizes to harness the power of analytics-based decisioning.  This process is driven by cloud computing. The opportunity for enterprises to leverage cloud based analytics is especially compelling in the area of real-time and near-real-time communications.  Consumers demand multi-channel communications that are effective, mobile and in line with their individual needs and preferences. Are banks ready to undergo the digital transformation of their business model in order to respond effectively to those needs whilst maintaining regulatory compliance?  In short, yes – responding to customer needs has always been essential... [Read More]

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