Tag Archives: Machine Learning

Analytics & Optimization My Top 10 Attributes of a Data Leader

Data graphic
Sep072017

A recent article in Information Age named 10 attributes of data leader. Each of the experts quoted discussed just one attribute — in my case, it was separating hype from potential, which is critical when you’re dealing with advanced analytics. Here’s an excerpt of what I wrote for that article: “In the Big Data era, businesses have been told to save every scrap of data because it might turn out to be a valuable clue to customer understanding or business performance. While the cost of storing data has fallen dramatically, it doesn’t represent the true cost of data, which includes ensuring quality, maintaining freshness and mitigating the risk of a breach. “Data leaders are equally discerning about the hype and potential of the analytics used on their data. They focus on the problems the business needs to solve, and investigate new analytic techniques that can make their data “talk” in... [Read More]

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Analytics & Optimization How AI Is Changing Lending (Podcast)

Dr. Scott Zoldi, FICO
Sep062017

If AI is good enough to power self-driving cars, isn’t it good enough to make credit risk decisions? What are the challenges lenders face using AI and machine learning models today? In this podcast for Lend Academy, FICO Blog author Dr. Scott Zoldi talks about his role as FICO’s Chief Analytics Officer, the company’s AI innovations and how they are being applied in credit risk, fraud management and more. Listen to the podcast: “I’m excited that machine learning and AI is the rage again, I think that’s a really positive thing because it’s a tremendously interesting set of technology,” Scott says in the podcast. “What I worry about is it takes a lot of care to properly productionize and operationalize AI. From making sure that models aren’t overtrained, to making sure that you have the proper amount and degrees of freedom, that you really thought about the data you bring into the... [Read More]

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Analytics & Optimization The Future of AI: Meet the Multi-Tasking Machines

FICO 25 years of AI and machine learning logo
Jul112017

To commemorate the silver jubilee of FICO’s use of artificial intelligence and machine learning, we asked FICO employees a question: What does the future of AI look like? The post below is one of the thought-provoking responses, from Chahm An, a lead analytic scientist at FICO, working in San Diego. Artificial intelligence, like human intelligence, uses observations from the past to learn a general model that can be used to make predictions about future similar occurrences. The future I see for AI is based on current work being done in this field, and grounded in what I saw 20 years ago, when I first began to study AI. What’s Really Accelerating AI? In 1997, and IBM’s Deep Blue had just defeated reigning world champion Garry Kasparov at the game of chess in what was seen as a landmark event of artificial intelligence surpassing a human champion at an intellectual challenge.... [Read More]

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Fraud & Security The Story Behind Europe’s €1.8 Billion Card Fraud Problem

Jun292017

FICO has just released an interactive infographic on European card fraud trends since 2006, showing that card fraud in the 19 countries studied has hit a new high of €1.8 billion. In the UK, card fraud also a hit a new high in 2016, £618 million, though the rise was less than the rise from 2014 to 2015. To understand what these numbers mean — and what issuers need to do now — it’s important to know how got here. That’s why our map tracks the data back to 2006. Why is 2006 so important? That was the year of ‘love my PIN day on Valentine’s day’ in the UK, as the liability shift between magnetic stripe and chip & PIN technology had been put in place during 2005. So chip & PIN was officially rolled out across Europe and executives expected to see the benefits of that investment in... [Read More]

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Risk & Compliance AI Spotlight: FICO’s Machine Learning Facilitates AML

Brain with AML highlihgted in neural pathways
Jun222017

This is a guest post from Nikola Marcich with the Policy team at the Software & Information Industry Association (SIIA), the principal trade association for the software and digital content industry. Walking into Bernie Madoff’s home in 2005, you would not have found piles of money under a mattress, behind a sofa or in his garage. At the time, Madoff had been running an elaborate Ponzi scheme through the wealth management arm of his business that reached $65 million by the time of his arrest in 2008, deliberately hiding the money intricately within the financial system. Serving as Madoff’s primary bank for over two decades, JP Morgan was one of the culprits of Madoff’s fraudulent actions and money-laundering tactics. In their innocent incompetence to identify clear red flags about Madoff’s returns and file a Suspicious Activity Report (SAR), JP Morgan’s was fined $1.7 billion in 2014. JP Morgan’s fine highlights the... [Read More]

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Risk & Compliance How to Build Credit Risk Models Using AI and Machine Learning

boxing poster with machine learning vs scorecard modeling
Apr062017

Which works better for modeling credit risk: traditional scorecards or artificial intelligence and machine learning? Given the excitement around AI today, this question is inevitable. It’s also a bit silly. While some new market entrants may have a vested interest in pushing AI solutions, the fact is that traditional scorecard methods and AI bring different advantages to credit risk modeling — if you know how to use them together. Take, for example, our new credit decisioning solution, FICO Origination Manager Essentials – Small Business. It’s designed to help lenders make faster origination decisions without increasing risk. This new FICO product combines our well-established scorecard technology with AI to build better credit risk models. How FICO Uses AI to Build Better Credit Risk Models As with our other origination products, Origination Manager Essentials includes credit risk models, and these models are segmented — different types of small business customers and different... [Read More]

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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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Analytics & Optimization Rise of the (IoT) Machines: When Do We Say “Enough”?

Image from Terminator: Rise of the Machines
Mar012017

Make no mistake about it, I am a technology-loving kind of guy. My job is all about helping people to make better business decisions using analytics technology, and I have boundless enthusiasm for speaking with FICO customers, data scientists and students about the power of behavioral analytics, artificial intelligence and machine learning. But when it comes to my personal life, I’m a bit of a contrarian. There’s been a lot of news about studies showing how too much smartphone use, or too much time on social media, can have a stressing, depressing effect. So I purposefully limit my phone use and I’m not even on Facebook, Instagram, Snapchat, et al. (Although I do love using Twitter as part of my work, to connect with followers all over the world!) How technology can rob joy As the Internet of Things (IoT) matures, I feel like a similar trajectory is starting to... [Read More]

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Fraud & Security AI Meets AML: How the Analytics Work

Brain with AML highlihgted in neural pathways
Feb152017

The focus on financial crime, and the money laundering that funds terrorist attacks and other criminal activities, has forced the industry to look for smarter approaches. In the previous posts in this mini-series, TJ Horan noted that AI is the newest hope for compliance, and Frank Holzenthal explored the benefits that AI can bring to compliance officers. Now it’s my turn, and I’m going to explore the AI and machine learning technologies my team has integrated into the FICO TONBELLER Anti-Financial Crime Solutions. We have built on top of the FICO TONBELLER solutions using FICO’s battle-proven and patented artificial intelligence and machine-learning algorithms, which are used in FICO Falcon Fraud Manager to protect about two-thirds of the world’s payment card transactions. Industry experts have begun to realize the significance of analytics in combatting anti-money laundering. For instance, Aite Group LLC in its 2015 report Global AML Vendor Evaluation noted that... [Read More]

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