Risk & Compliance myFICO Quiz: Do Consumers Understand the FICO Score?

Taking Quiz FICO Scores

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.

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Fraud & Security APAC Banks Take A Cautious Approach To Stopping Fraud

Stopping Fraud

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]

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Risk & Compliance Secure, Standardized Data Sharing Empowers Consumers & Promotes Innovation

Consumer 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]

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Risk & Compliance FICO Safe Driving Score Predicts Likelihood of Future Collisions

FICO Safe Driving Score

Despite advancements in safety technology, road fatalities are on the rise. Per the National Highway Traffic Safety Administration, human error accounts for 94% of crashes. FICO, along with global risk management leader, eDriving, firmly believes that proper education and reinforcement of safe driving behaviors can help make roads safer and potentially save lives, including for fleet drivers of all types of vehicles, driving for varied work purposes in all types of conditions, and others. Pertinent data and prudent application of predictive analytics can provide insights into helping identify and reinforce safe driving behaviors. FICO launched the FICO® Safe Driving Score in partnership with eDriving’s smartphone application, MentorSM  in October 2016.  Since then, the underlying model and application have both been fine tuned to the specific needs and requirements of Fleet Safety Management programs and adopted by global industry leaders with fleets of tens of thousands of drivers in service, delivery,... [Read More]

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