FICO conducted a survey of investors who attended SFIG about how they use credit scores to evaluate loans, what factors they want to see included in scores, and what makes them trust one score over another. The blog discusses the results.[Read More]
Using patented techniques from fraud analytics like collaborative profiling and outlier analysis, early results indicated a reduction in false positives of up to 90% while catching 50% more suspicious transactions previously undetected. [Read More]
Since the previous quarter, small U.S. firms showed a slight improvement in cybersecurity risk —up to 740 from 737 — while large firms fell from 646 to 643.[Read More]
I had the chance to attend the Structured Finance Industry Group’s annual conference in Las Vegas, where SFIG’s members, including securities investors in a range of industries — from mortgage to auto to commercial lending — gather to discuss the latest and greatest in securitization. During the conference, FICO also took the opportunity to survey these investors about how they use credit scores to evaluate loans, what factors they want to see included in scores, and what makes them trust one score over another. Here’s what I learned: The FICO Score is the most trusted metric for loan quality. Nearly half of respondents (45 percent) said the FICO® Score was the most useful criteria in evaluating the quality of loans for secondary market investments, the most of any criteria for analyzing a loan. Loan-to-Value Ratio (34 percent) was second, and Debt-to-Income Ratio (10 percent) was third. FICO has been the... [Read More]
Hope you had a relaxing Easter weekend with family and friends! In between coloring eggs, if you picked up a paper or scrolled through a news site, you probably would have seen the news that $130 million cash was found at the house of the ousted president of Sudan and how the US government foiled a money laundering operation by drug traffickers using bitcoins. Money never sleeps, as they say. Not even for Easter and such events are on the rise and a cause of constant worry for compliance officers all around the world. AI AML Models: Solving a Big Problem So, here’s the key problem. Regulatory bodies around the world have pegged global money laundering at $2 trillion. What’s worse, they estimate that less than 1% is ever caught. So to try and combat this regulators have raised the penalties for institutions found to have facilitated money laundering whether... [Read More]
Since the previous quarter, small U.S. firms showed a slight improvement in cybersecurity risk —up to 740 from 737 — while large firms fell from 646 to 643.
While issuers have already started the actions prescribed by the FCA's persistent debt regulations, there is still a sizeable amount of work to complete and opportunities to be identified.
April is National Financial Literacy Month. Understanding credit is an important part of financial literacy, but how well do consumers understand the FICO® Score – what factors make up the Score and how they’re used by lenders? myFICO recently conducted a FICO Score-related quiz with myFICO members as well as a random group of people to see how well individuals know about credit, credit scoring, and lending practices. Does regular consumer access to FICO Scores influence financial knowledge? While participants from both groups answered many questions correctly, the myFICO responders had a higher average score (80%) for correct answers compared to an average score of 60% with the random group. But about 40% of both groups missed the question on what information in a credit report typically has the greatest impact on a FICO®Score To learn more about the results of the survey, check out Tom Quinn’s blog at https://blog.myfico.com/quiz-results-understanding-of-fico-scores.
Medscheme created a modern decision platform for its Medical Aid Administration business, which reviews some 400,000 claim lines per day.
Almost three in four banks in Asia Pacific anticipate that fraud in their country will increase in 2019, according to a recent poll by FICO. Of specific concern are transactions completed when neither the card nor the cardholder is physically present (card-not-present or CNP fraud), as well as cards taken out by criminals under false identities (application fraud). These were identified as the two key concerns, as well as the biggest challenges to stopping fraud in 2019. “The volume and velocity of transactions is growing in Asia,” said Dan McConaghy, president of FICO in Asia Pacific. “Over 50 percent of global online retail sales in 2018 originated from the region. This growth in ecommerce along with the efforts of banks to digitize more services has seen a change in fraud risk. Dealing with an ocean of transactions means that AI and machine learning are essential when it comes to detecting... [Read More]
Chartis Research has named FICO a category leader in the AI in Financial Services, 2019; Market and Vendor Landscape. FICO was named a category leader in both AI analytics and packaged AI applications.
Based on the observations of thousands of businesses scored for the ABC, FICO and the Chamber offer six recommendations for cyber risk management that can help organizations improve their security posture and better protect sensitive data.
Data is being used to improve all aspects of a consumer’s life in our increasingly digital world. eCommerce companies use data for a number of purposes, such as to personalize the experience of users across mobile apps and the web, suggest purchases and make it easier to find high-intent products. Retail stores use location data to drive consumers to local stores and restaurants and is even used in the store to better design its layout and available inventory. With the emergence of consumer-permissioned data in the financial services ecosystem we are beginning to see similar impact. Consumers’ ability to access and control their financial data is providing them with greater utility and benefit than ever before. Along with this comes expectations of better experiences, on-demand access and deeper insights. The good news is that consumer-permissioned data is providing the industry a platform for further innovation. Even now, at the tap of... [Read More]