With over £40 billion of unused exposure on inactive UK cards and over £50 billion on active UK cards there is the potential for huge losses if consumers start to eat into these limits.[Read More]
When we look at how card issuers are dealing with three key factors — the performance of delinquent credit card portfolios, the actions on the persistent debt cohort and the operating model adjustment to mitigate against unnecessary impact of IFRS 9 — what is interesting is what we don’t see.[Read More]
Did you know that 13% of U.S. consumers acquired their most recent auto loan online, compared to only 5% in 2018? These stats and more can be found in FICO's second annual consumer survey on vehicle finance perceptions. This blog dives into the U.S. results.[Read More]
With over £40 billion of unused exposure on inactive UK cards and over £50 billion on active UK cards there is the potential for huge losses if consumers start to eat into these limits.
When we look at how card issuers are dealing with three key factors — the performance of delinquent credit card portfolios, the actions on the persistent debt cohort and the operating model adjustment to mitigate against unnecessary impact of IFRS 9 — what is interesting is what we don’t see.
Given new and disruptive innovations in the auto industry such as driverless cars, collaborative economy models with companies like Uber and Lyft entering the mainstream, new subscription ownership models, and the overall shift to digital experiences, it’s clear that the vehicle industry is experiencing tremendous change. Does this extend to consumer experiences and perceptions around vehicle financing? To answer that question (and more), FICO has released the findings from our second annual global consumer survey on vehicle finance perceptions. We collected consumer data from 2,000 consumers across nine countries: US, Canada, UK, Mexico, Spain, Chile, Germany, New Zealand, and Australia. Below are some key takeaways (and a few surprises) that we uncovered. US consumers showed an increasing appetite for online financing—an 8% YoY increase 13% of U.S. consumers acquired their most recent auto loan online, compared to only 5% in 2018, representing an 8% YoY increase for online financing. More than... [Read More]
“Marta epitomises everything that the DataIQ 100 list is about — a smart, data-literate, committed, international practitioner who is putting her skills to work for the benefits of clients and their customers."
Bola Sokunbi of Clever Girl Finance recently chatted with Jenelle Dito, Director, FICO® Score Open Access program, for her podcast episode ‘Dispelling The Most Common Credit Myths’. Jenelle shared her personal story with money, what she learned in the process of her own money challenges and how people can empower themselves with credit knowledge. This follows the FICO Score Open Access program hitting an important milestone! The program now reaches more than 300 million consumer accounts, provides free access to the FICO® Score used by lenders for credit decisions and the factors that affect them. Participating institutions deliver the scores to their customers via a variety of channels, including online banking websites, mobile applications and paper statements. More than 170 financial institutions participate in the FICO® Score Open Access program including eight of the top 10 credit card issuers. The FICO Score is the standard measure of U.S. consumer credit risk used in more than 90 percent of consumer lending decisions in the U.S. In addition, FICO® Score Open... [Read More]
Our analysis of UK cards data from the FICO Benchmarking Service has revealed some troubling trends in UK cards delinquencies. All average delinquent balances reached over two-year highs in the fourth quarter of 2018.
Following on from evaluating the roll rate results, this blog looks at the static delinquency levels, accounts remaining at the same level of delinquency.
“We reviewed other decision engines, but the FICO system gives us the greatest sophistication and flexibility,” said Yisroel Perkel, founder and director of Evergreen.
Australia’s Banking Royal Commission delivered its final report at the start of February; the culmination of 14 months, 10,232 submissions and 7 rounds of public hearings into the banking, superannuation and financial services industry. The Commission uncovered a number of issues relating to account lifecycle management by banks, remuneration and incentive schemes that disadvantage customers and some serious examples of misconduct in a number of industries. The findings made by Kenneth Hayne will have serious consequences for organisations both now and into the future. Volume 1 of the final report runs to about 500 pages with an expansive list of recommendations. The enquiry looked into misconduct and the issue of culture and governance in each industry and the execution of regulation by both industry bodies and regulators. Banks and other financial institutions will need to demonstrate more rigour around the decisions they make and their key delegates will need to take more... [Read More]
Balance roll rates — overdue balances on UK cards that go from one 30-day cycle to the next without repayment — moved slightly higher in 2018. Our analysis of data from 11 card issuers across the UK shows the areas that warrant attention from card issuers.