Category Archives: Risk & Compliance

Risk & Compliance FICO Score Planner: Helping People Meet Their FICO Score Goals

FICO Score Planner Banner
Jul182018

Functioning in the U.S. economy using cash only can be a challenge.  Simple daily transactions, such as making an online purchase, going out to eat, or even paying a bridge toll is a lot easier if you have a credit or debit card. Most people know that having a higher credit score is a positive thing as it can help increase access to credit at more attractive rates.  Additionally, most people also understand that not paying your bills on time, carrying a high amount of credit debt, and opening up a lot of credit in a short period of time are behaviors that will likely have a negative impact on their credit scores. What’s less intuitive is knowing what potential actions they could take to reach a target credit score goal by a target date. For example, if someone currently has a 695 FICO® Score 8 based on Experian data... [Read More]

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Risk & Compliance Video: China Guangfa Improves Collections

Jul152018

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]

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Risk & Compliance Credit Knowledge is Power

Credit Knowledge
Jul122018

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]

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Risk & Compliance Australians & New Zealanders Want Online Car Loans

Online Car Loans
Jul102018

42 percent of consumers in Australia and 40 percent of consumers in New Zealand indicated they would like to apply for their next automotive loan online These were the surprising results of our first global survey on consumers’ automotive finance experience. The study found that there was a growing inclination for vehicle shoppers in the antipodes to apply for auto loans online. Australia and New Zealand had the second and third highest figures among the nine countries surveyed. Only the UK had more respondents who indicated a preference for online at 48 percent. These results indicate a significant shift in channel preference for loans with the majority of consumers in Australia (45 percent) and New Zealand (62 percent) having applied for their most recent auto loans at dealerships. “Unlike the US, where seven in ten respondents would rather apply for their next loan at a dealership or through a visit to the bank or... [Read More]

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Risk & Compliance Chartis Names FICO a Category Leader for CECL

Leader in CECL
Jul092018

Leader in CECL, FICO says it can ‘deliver a competitive business advantage’ FICO has been recognized as a “Category Leader” by Chartis Research in its report on CECL (Current Expected Credit Loss) technology solutions. The May 2018 report from Chartis compares the CECL solutions of 17 technology vendors, based on both ‘market potential’ and ‘completeness of offering’. Read our release on the report. Leader in CECL: Chartis FinTech Quadrant™ Chartis explains in the report, CECL Technology Solutions 2018, that because most financial institutions in the US outsource almost all of their systems, they won’t be ready to comply until vendors are ready with solutions that match their technology and process requirements. Chartis also observes that vendors with a SaaS and data focus are best placed to deliver the “ideal” CECL offering: a flexible solution with support for core business operations. “Our position in the Chartis FinTech Quadrant for CECL technology solutions... [Read More]

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Risk & Compliance How To Issue More Credit Cards With Predictive Analytics

Issue more credit cards
Jun272018

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]

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Risk & Compliance Credit Boot Camp: Education for Scoring & Data Driven Decisions

Credit Boot Camp
Jun252018

FICO World is always a fantastic opportunity for customers to connect with FICO experts, industry thought-leaders and peers to discuss all things FICO and key trends in the industry. Before the official kick-off of the conference, FICO offers a day-long session, “Credit Boot Camp” which covers the basics of scoring and decision-making across all stages of the credit lifecycle. The bootcamp this year attracted a bumper crowd of attendees, most who are either new to scoring or credit management or are just looking for a refresher on some fundamental topics.  Our FICO experts shared their knowledge and expertise starting with an overview of the credit customer lifecycle and the basics of the FICO® Score.  We discussed topics such as: How are FICO Scores developed? What is the FICO Score comprised of? How are FICO Score reason codes determined, and what do they really mean? The Boot Camp also went through key topics in... [Read More]

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Risk & Compliance Accelerating and Automating Small Business Lending

Accelerating and automating small business lending
Jun242018

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]

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