Risk & Compliance FICO Score XD 2 and Innovations in Financial Inclusion

Hands holding globe

I recently had the opportunity to attend LendIt Fintech USA, a leading event discussing financial services innovation.  Some of the top thought leaders in banking, finance, artificial intelligence, machine learning, and credit risk came together in San Francisco to discuss the key trends and innovations in our industry.  The FICO team was excited to lead the Financial Inclusion track that focused on how to responsibly expand credit access to previously unscorable consumers.  In addition, we explored the power of tapping into alternative data in credit scoring in markets across the globe. A key point that the experts underscored during the Financial Inclusion sessions at LendIt was that expanding financial inclusion is a win-win proposition.  Consumers benefit through more affordable borrowing options, while lenders benefit by growing their customer base.  At a macroeconomic level, broader financial inclusion can benefit entire countries through the economic growth that greater access to credit can... [Read More]

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Risk & Compliance CECL for Auto Finance – How to get ready for CECL?

How do you get ready for CECL?

How do you get ready for CECL? In my last blog post, CECL for Auto Finance – Where Do I Start? I promised to start outlining “10 Requirements for an Effective CECL Software Solution”. These are tips to keep in mind whether you plan to “build” or “buy” a solution. To keep things digestible I’ll spread these out over the next three posts under three headings: Ready – What does your organization need to do to prepare for CECL implementation? Set – What capabilities does your solution need to have to provide a stable platform? Go! – What should your software actually do to help you manage your portfolio under CECL once you have implemented it? Ready? Let’s find out. 1) How do you get ready for CECL – Data readiness The best CECL software solutions will help to manage the standard’s vastly expanded data requirements, but it is up to... [Read More]

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Collections & Recovery Video: NAB Succeeds With Analytically-Driven Collections

Analytically driven collections

National Australia Bank, one of the four largest financial institutions in Australia, auto-resolves 75% of delinquent conversations with customers while maintaining its posture as a leader in customer care. The bank has done this by harnessing the power of FICO’s Customer Communication Services (CCS) to bring analytically-driven automation to its collections process. The implementation has resulted in 75% automation of all cases, a lower cost-to-collect and reduced impairment. It has also produced a Net Promoter Score of 63. That means that 63 out of every 100 customers handled in NAB Collections would promote their positive experience to others. Now there’s a thought, brand promotion from those you might not expect! Previous to the move to analytically-driven collections, NAB was using an inefficient dialer and SMS platform. They needed a lot of people to service customers and a lot of the calls weren’t very effective.  In the past NAB’s collections staff were... [Read More]

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Analytics & Optimization Make Faster & Smarter Decisions with Machine Learning


Optimization of supply chain operations has become an imperative, as organizations grapple with customer demands, unpredictable events, and spiraling costs. On top of these persistent challenges, complexities are magnified by the myriad of tools required to manage everything from workforce schedules to resource allocation. To meet competitive demands, business decisions are needed quickly and accurately against an ever-evolving list of requirements and dependencies. But all too often, supply chains break down in the face of unanticipated factors or messy and incomplete data. To drive greater speed and precision in the supply chain, industry leaders are employing automation technology and visual insight capabilities. This traditional software driven approach can help but does not always suffice in the face of a growing number of variables and constraints. Today, many companies are transforming their supply chain challenges into business opportunities with powerful analytic platforms rooted in Artificial Intelligence and Machine Learning. Machine Learning... [Read More]

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Risk & Compliance How Student Loan Borrowers Improve their FICO Scores

Student Loan Debt

Student loan debt in the United States has reached an all-time high. Student loan debt can also be a part of a consumer’s financial journey as they look at buying a car, a house and even into retirement. With April being Financial Literacy month, FICO is exploring 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.  How many are exhibiting positive behaviors and driving score increases?  How many are exhibiting less favorable behaviors, leading to score 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. Among those within this profile, we found 22% had a significant increase in their FICO® Score 9 between October 2016 and October 2017.  We defined a “significant increase” as those with... [Read More]

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Risk & Compliance Banking Solutions: Reduce Complexity, Increase Sophistication

New Banking Solutions: Reduce Complexity, Increase Sophistication

FICO WORLD 2018, MIAMI, Florida FICO today unveiled a host of new retail banking solutions that allow lenders to manage the credit lifecycle in a way that is smarter, faster and simpler. The innovations are designed to help support lenders with their digital transformations as retail banking continues to be shaped by the forces of mobile, cloud, analytics and big data. “We have seen remarkable changes in banking in the last two years as lenders accelerate their digital transformation and reinvent the customer experience,” said Tim VanTassel, vice president of FICO’s credit lifecycle business line. “Lenders are engaged in an analytic arms race to find, delight and retain the right customers by determining and deploying differentiated offers and experiences.” Read the full media release here Originate Loans Using Optimized Deal Structures Providing consumers with multiple options for the best-fitting terms in real time has been an industry goal for some time, and... [Read More]

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Analytics & Optimization Mission Critical Artificial Intelligence in the Cloud

Mission Critical AI

FICO WORLD 2018, MIAMI, Florida Mission Critical AI FICO showcased the latest enhancements this week to its FICO® Decision Management Suite (DMS) which leverages artificial intelligence (AI), machine learning (ML), advanced analytics, optimization and decisioning to deliver better, more predictive business outcomes. New capabilities include: DMS Enterprise Grade Cloud Service: Now available on AWS, this managed service provides 24×7 high availability, disaster recovery, and supports the development, test and production environment. New tools and execution platform: For mission critical AI, decisions, analytics and optimization, the new FICO® Analytics Workbench supports a wide range of commonly used AI and ML model executions and FICO developed analytic models for use cases such as fraud and anomaly detection. FICO® Decision Central™ and DMS Hub in the Cloud: Enables true centralized decisioning with performance tracking, governance, source code control and collaboration for analytics and AI models. Next generation decision optimization: Latest version of FICO® Decision Optimizer is now available... [Read More]

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