Tag Archives: Case Studies

Analytics & Optimization Why FICO Was Named a Leader in Predictive Analytics

Woman with Predictive Analytics Formulas
Mar222017

Great news, FICO was named as a leader in the March 2017 report, The Forrester Wave™: Predictive Analytics and Machine Learning Solutions, Q1 2017. This is an honor, and it underscores for us the value and positive business impact our analytic solutions continue to deliver. These types of technology evaluations are really useful for organizations needing guidance as they enter into new strategic ventures. With plenty of attention on the promise of advanced analytics and machine learning, this report from Forrester is very timely. The report highlights: The Predictive Analytics and Machine Learning (PAML) Solutions market is “hot,” with Forrester forecasting “a 15% compound annual growth rate (CAGR) for the PAML market through 2021.” The true essence and core value of predictive analytics, stating “enterprises that can make probabilistic predictions about customers, business processes, and operations will have an edge over enterprises that can’t.” Machine learning is fundamental to artificial... [Read More]

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

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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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Analytics & Optimization Fast, Personalized Insurance Decisioning: Q&A with Infosistema

Infosistema_insurance_Strategy-Director-featured-image
Oct112016

Infosistema, a business and technology consultancy, wanted to build a solution that would help its insurance company clients create a personalized experience for each prospect and customer. Working with FICO, the company now can build flexible and customizable auto insurance pricing and life insurance underwriting decision-making solutions, with advanced simulation capabilities, in eight weeks. I recently had the chance to speak about this with Alexandre Lee, Partner and Board Member at Infosistema. Q: Can you please tell me a bit more about Infosistema? Alexandre: Infosistema is a consultancy focused on insurance and banking. We offer web portals, mobile applications, business process management solutions and service-oriented analytics to help insurance and banking institutions all over the world. Our focus is on staying innovative by investing a lot in research and development for our products. Q: What business challenges were you looking to solve when you teamed up with FICO? Alexandre: As... [Read More]

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Customer Engagement Analytics That Fuel Loyalty – A Client Success Story

Grocery loyalty image
Aug292016

We’ve been blogging about a Canadian grocer that is changing the game with its analytics-driven loyalty program. For its +9 million loyalty members, personalized offers are so relevant, it’s almost like having an old-fashioned relationship with the corner grocer. In this new-fashioned relationship, however, members can redeem their offers at more than a thousand stores of various types, in many locations across Canada. What’s this grocer’s secret to success? Here’s a peek inside the analytics. Understanding customers as more than strings of transactions Delivering a personally unique set of relevant offers every week on such massive scale is a computationally demanding, mathematically intense undertaking. The heavy lifting is performed by over 4,000 time-to-event (TTE) predictive models, generated and updated every four months by a FICO-built analytic “factory.” Each TTE model predicts the propensity of a customer to purchase a particular product — say, a specific brand of laundry detergent —... [Read More]

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Customer Engagement Case Study Spotlight: Thinking Differently About Loyalty

Grocery loyalty image
Aug252016

Retail loyalty programs are ubiquitous and predictable — except in the Canadian grocery space. Here, a large retailer is changing the game, transforming what customers expect from loyalty programs and what retailers can accomplish with them. In 2013, when a major Canadian grocer was preparing to launch its first loyalty program, millions of Canadians already had loyalty cards from other grocers — yet grocery sales dropped 0.4% industry-wide. Clearly, there had to be a better way than the largely indistinguishable approach taken by competitors. The grocer decided to take a different path, turning to FICO for advanced analytics to fuel its loyalty program. Predictive and prescriptive analytics determine how to make the best use of available marketing funds. Instead of indiscriminately dispensing points for every dollar spent, the program gives offers and rewards to customers based on a multidimensional understanding of individual shopping behavior. Instead of cross-selling aimed at loading... [Read More]

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Analytics & Optimization Video: Protecting Drivers and Toyota with Optimization

Toyota Optimization Video Image
Aug232016

Ever wonder how Toyota Financial Services keeps 10,000 drivers from hurting their credit? When delinquencies spiked after the 2008 financial crisis, Toyota Financial Services realized it needed a markedly different approach to collections. As Jim Bander of Toyota Financial Services explains in the video below, the company turned to FICO prescriptive analytics and optimization, allowing it to become more flexible and scientific about collections decisions. Now, Toyota Financial Services can reach financially strapped customers sooner and have a conversation that makes a difference. The resulting benefits have been numerous, including helping many customers avoid repossession and stay in their cars, and preventing thousands from reaching a stage of delinquency that would affect their credit. For more information on this success story with Toyota Financial Services, read the following blog posts: Toyota Financial Drives “Data Science for Good” with FICO Analytics Toyota FS Wins InformationWeek “Best in Analytics” Award FICO Optimization Helps Toyota Keep... [Read More]

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Analytics & Optimization Toyota Financial Drives “Data Science for Good” with FICO Analytics

Aug022016

An unabashed data geek, I’m fascinated by every facet of analytics and data science, including the growing movement to apply commercial data science techniques for social good. That’s not normally what people think about when the topic turns to debt collection. But using “data science for good” is exactly what Dr. Jim Bander did at Toyota Financial, implementing FICO Decision Management Suite to optimize the automotive lender’s practices, and keep more drivers in their cars and their credit history clean. “We have two core values here at Toyota: respect for people and continuous improvement,” Bander says. “Going into debt collections is a hard time for a lot of people, but our goal is to respect them throughout the process and to keep them as Toyota and Lexus drivers. We want them coming back as future customers.” Continuously improving decision models Toyota Financial began emphasizing collections after the 2008 financial crisis,... [Read More]

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Customer Engagement Are We Asking the Right Questions of Our Customer Data?

Consumers + credit scores
Jun282016

You have customer data coming out your ears Chances are excellent that you have amassed a great deal of quantitative and qualitative data about your customers: demographic, transactional, social, behavioral, perhaps even emotional. Some of it is structured; some of it isn’t. Becoming more adept at slicing and dicing that data in ways that help you make better operational and business decisions is critical. Where most organizations fail, however, is in not analyzing their data from their customers’ points of view. We’re so focused on products, processes and profits that we forget to look at what’s important to customers. And that’s no less critical. Ask the right questions Take, for example, these two questions a business may consider in determining what call center improvements they should make: “How can we reduce costs in the call center?” “What frustrates customers when they contact the call center?” Both are valid—even vital—questions. The... [Read More]

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Analytics & Optimization Optimization Boosts Česká Spořitelna Portfolio Profit 26%

Ceska Decision Management Awards logo
Dec022015

Optimization – the use of analytics to derive the best strategies for reaching particular goals – can have dramatic effects on the success of decision strategies. For an example, look no further than Česká Spořitelna, the largest bank in the Czech Republic. The bank increased portfolio profit on pre-approved loans by 26%, and new sales by 29%, by developing optimized strategies using FICO software. For this achievement, Česká is a joint winner of the 2015 FICO Decision Management Award for Customer Onboarding and Management, along with China Minsheng Bank. Česká Spořitelna wanted to combat aggressive pricing by competitors, which was cutting into the bank’s market share. “We wanted to be more competitive without destroying our loans’ profitability,” said Zuzana Sloukova, who leads the optimization, reporting and analysis team for Retail Risk at Česká Spořitelna. “Optimizing our strategy for pre-approved cash loans would be a significant part of this campaign.” The... [Read More]

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Customer Engagement When Loyalty Is Rocket Science

Nov242015

How do you launch a new loyalty program in a saturated market during one of the worst years for grocery sales in decades…and rocket to success? By making relevance to individual customers the core fuel of everything you do. Case in point: a Canadian grocer’s loyalty program is using sophisticated analytics to identify — from more than 380 billion possible offer combinations — the handful of offers that will be most relevant and appreciated by each customer for the upcoming week. The program is a game changer not only for its ability to anticipate customer needs, point sensitivities and even product sentiments, but also because it’s purely digital. Customers receive offers, along with recipes and other information, via the website, email or mobile app. The loyalty program, which rocketed to near the top of the nation’s grocery programs in just one year, is also changing the economics of cultivating loyalty.... [Read More]

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