FICO® Strategy Director for Retail Banking

Smarter Banking Decisions

Overview

FICO® Strategy Director for Retail Banking helps financial services institutions proactively manage individual deposit and credit accounts to increase revenue, maintain compliance, and improve customer retention. Using FICO’s industry-leading methodology for segmentation and deployment of predictive analytics, institutions can deliver fast, fully automated decisions for Collections, Pricing, Marketing, Authorizations, Overdraft Management, Pricing, Pay/No Pay, Fee Waiver and Deposit Hold actions – based on each customer’s risk and relationship value. Best of all, policy-based retail banking solutions can be implemented quickly, easily and affordably.

Core Benefits

Limit exposure and losses

Improve customer satisfaction & reduce attrition

Tackle regulatory compliance

Limit exposure and losses

Determine, based on risk and past behavior, whether to increase or decrease credit and/or cash limits at the account or customer level. Calculate and set overdraft limits, and combine those strategies with pre-approved Pay/No Pay decisions to control potential losses.

Improve customer satisfaction & reduce attrition

The perception of high fees is a top reason that consumers switch banks. Build the right framework for fee waiver decisions to take the right actions, to retain your best customers.

Tackle regulatory compliance

Help ensure compliance by more effectively managing both credit (collections, credit limit) and deposit decisions (holds & overdrafts), with a clear audit trail.

Solution Architecture

FICO® Strategy Director for Retail Banking

Strategy Director for Retail Banking leverages the Decision Flow methodology at the core FICO® TRIAD Customer Manager. Business users can quickly build strategies using the four key components of the Decision Flow: Exclusions/Population Groups - determining which entities are eligible for a decision, then the first level of segmentation for reporting and decision making, Strategy assignment – what specific decisions should be made for each group, which is the basis for champion/challenger testing, Action Sets – the assignment of the specific decisions for each entity, Reporting/Visualization – understanding the results of your decision strategies to analyze and improve upon.

Key Features

  • Collections for both delinquent and over limit collections at the account or customer level. Accelerate collections on higher-risk accounts, while allowing lower-risk accounts time to self-correct.
  • Pricing can be based on risk/revenue assessment. Organizations can adjust elements of pricing based on the behavior of the customer to increase revenues by stimulating increased usage.
  • Reissue automates the account renewal or card reissue process to reduce credit and operational losses by managing the reissue period for accounts based on risk.
  • Credit Line Calculation to control credit line and cash line decisions at the account or customer level. Determine, based on risk and past behavior, whether to increase or decrease credit and/or cash limits.  Setting the appropriate credit limits can improve revenue, decrease costs, lower expenses, and reduce attrition of your best customers. 
  • Authorizations to make fast real-time decisions that help increase revenue and improve customer satisfaction by minimizing the number of point-of-sale transactions referred for manual intervention.
  • Marketing to increase analytically driven, cross-sell capabilities that enhance customer relations and retention by making the right offer to the right individual.
  • Overdraft Limit Management calculates and sets overdraft limits, and pre-approval of Pay/No Pay decisions to control your risk from poor-performing accounts – while protecting your relationship with your best customers.
  • Fee Waiver Assignment defines a fee waiver category for each type of bank fee — overdraft, late payment, NSF returned item and 16 other defined fee types. Each fee category can be assigned a different proactive or retroactive response including no waiver, partial waiver or full waiver.
  • Deposit Pricing effectively manage liquid and term deposit pricing in any rate environment by balancing margins with portfolio growth via deposit pricing optimization rules. This can result in delivering 2-5 basis points in lower rates paid by targeting the right rate, for the right product, to the right customer.

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