Tag Archives: Optimization

Analytics & Optimization Advancing the Field of Prescriptive Analytics

FICO Xpress Mosel
Feb272018

FICO has a long history of using mathematics and advanced analytics to help businesses make better decisions. As pioneers in this space, we’ve always been committed to developing new technology, from the first commercial mathematical modeling language ‘mp-model’ in 1983, to large scale and parallel distributed computing capabilities in the early 2,000s, to the first and only parallel simplex algorithm. Since 2012 we have  been putting the power of advanced analytics, optimization, and prescriptive analytics into the hands of business users with Xpress Insight. It is with great pride that I share another step forward in our mission. Last week we announced that FICO Xpress Mosel, the leading optimization modeling, analytic orchestration, and programming language is now open and available to everyone free of charge. From the boardroom to the classroom, anyone can now create optimization models to solve problems more efficiently and make better business decisions based on data.... [Read More]

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Collections & Recovery Should You Open Your Wallet for Omnichannel Collections?

Woman in call centre
Sep272017

In debt management, everything comes down to money. Even the collections systems you use are about stretching that last dollar or pound or euro until it snaps. However, if you don’t know what’s on the market today, you don’t know what you’re missing. You might be missing the opportunity to make a dramatic improvement in your performance and productivity, without spending a whole ton of money. In my last post, I pointed out ways that you’re probably leaving money on the table in your approach to IFRS 9. Now I’m going to repeat myself. If you spend all your time trying to move cap ex into op ex, or substantially reduce op ex, you’re probably leaving money on the table. The Dreaded Omnichannel Let me give you an example, and I’m sorry to be so obvious, but yes, it’s one of ours. Our Customer Communication Services for Collections isn’t a... [Read More]

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Analytics & Optimization Modelling Deposit Price Elasticity: Challenges and Approach

Analytics on screen
Sep042017

This is the third in a series of blogs on deposit pricing, focusing on price elasticity modelling approaches and challenges. The goal of any deposit price optimization solution is to make data-driven pricing decisions to manage portfolio balances and trade these off against the associated costs. These solutions should allow a pricing manager to prepare and run what-if analyses to assess the impact of pricing strategies, competitor price actions or movements in central bank base rates. Fundamental to these solutions are price-elasticity models that capture and predict customer behavior as a response to pricing and other non-price factors. In this blog, we discuss the challenges and solution approaches for the development of robust price-elasticity models. Price Response Signal Price sensitivity can be measured with regards to product rate, market ranking, competitor rates or even interest paid to other products in the portfolio. The modelling challenge is not only to measure... [Read More]

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Analytics & Optimization Modelling Deposit Price Elasticity: What Data Do You Need?

Analytics on screen
Aug142017

This is the second in a series of blog posts on deposit price elasticity, focusing on the modelling data requirements. There are several different modelling techniques and approaches to measure deposit price elasticity, which is dependent on the actual business problem and model usage. The exact data requirements might need to be amended to account for the modelling technique, but a large number of data items are consistent across all approaches. As with all modelling projects, it is good to initially take a step back and think about what type of information you would expect to be predictive, impact deposit price elasticity, and make you move your savings across different products and / or financial institutions. We would suggest that considering the below fields would be best practice for a deposit price elasticity model development: Product details: Historical interest rate of the product(s) to be modelled, this would include retention... [Read More]

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