Worldpay Transforms Merchant Onboarding with FICO Platform
Using the FICO Decision Management Platform and FICO Application Studio, Worldpay has been able to increase automated merchant onboarding approval rates.
Worldpay, Inc., a leading payments technology company, has achieved significant results by creating a centralized underwriting management solution on the FICO® Decision Management Platform (DMP). Through use of the FICO Decision Management Platform (DMP) and FICO Application Studio (FASt), the company has been able to increase automated merchant approval rates for their U.S. merchants.
The company also leveraged the platform to reduce merchant onboarding times, resulting in improved customer experience and accelerated business growth. For its achievements, Worldpay won the 2018 FICO® Decisions Award for Customer Onboarding & Management.
“The FICO tool has allowed the risk and business intelligence teams to create a targeted approach to auto approval rules management, as evidenced by a year-over-year increase,” said Brandon Hunt, director of credit risk at Worldpay. “By extracting and analyzing data within FICO, we have materially reduced the number of false positives. Additionally, we have transitioned certain processes downstream with no negative outcome on KYC validation and no increased risk to the organization.”
Senthil Erulappan, senior manager of product engineering at Worldpay, added: “FICO’s DMP has helped us consolidate multiple underwriting processes and solutions across the enterprise into a centralized underwriting/decision management platform that can scale across verticals, product lines and regions. It has allowed us to build the foundation for digital transformation of our merchant onboarding process and experience by automating decisions and streamlining the underwriting process.”
Agile Response to Market
By streamlining their risk strategy, Worldpay has been able to adapt to market and regulatory changes with agility, allowing business users to update rules in minutes without the need for additional coding. These updated changes have helped increase accuracy of reporting, reduce portfolio risk, reduce costs and minimize fraud, while continuing to meet industry compliance standards.
“In addition to reaping multiple business growth benefits, this centralized approach has helped Worldpay roll out innovative services like ‘underwriting as a service’ on the DMP platform. These changes are all part of ongoing continuous improvement for our business, a key focus area for Worldpay,” said Scott Price, product manager, customer acquisition at Worldpay.
“Merchant onboarding is a very competitive market, where speed makes all the difference,” said Tanya Andreasyan, editor-in-chief, FinTech Futures / Banking Technology. “With FICO technology, Worldpay created a solution that is not only helping them better manage risk, it is moving the needle on revenue.”
“We are pleased to award Worldpay for their innovative use of FICO solutions in merchant onboarding,” said Nikhil Behl, head of marketing at FICO. “It’s exciting to see teams like Worldpay working with us to create impactful solutions for their clients.”
About the FICO Decisions Awards
The FICO Decisions Awards recognize organizations that are achieving remarkable success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based upon measureable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2018 judges are:
- Sid Dash, research director at Chartis Research
- Tanya Andreasyan, editor-in-chief, FinTech Futures / Banking Technology
- Anna Milne, editor at Finextra
- Julie Conroy, research director for Aite Group’s Retail Banking practice
- Andras Cser, principal analyst - security and risk professionals at Forrester
- Mon Pernia, head of consumer collections, Globe Telecom (2017 winner)
- John Rymer, principal analyst - application development & delivery professionals at Forrester
The winners of the FICO Decisions Awards will be spotlighted at FICO® World 2019, the Decisions Conference, November 4-7 in New York City.
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<p>FICO’s latest research on <a href="http://www.fico.com/en/blogs/risk-compliance/us-credit-quality-rising-the-beat-goes-on/" target="_blank">national FICO® Score distribution</a> shows that US credit quality continues to trend upwards, with an increasing number of consumers scoring in the highest scores ranges. Given that, we decided it was time to refresh our study on “<a href="http://www.fico.com/en/blogs/risk-compliance/infographic-what-does-a-high-credit-scorer-look-like/" target="_blank">FICO® Score high achievers</a>,” where we examine the credit behavioural profiles of consumers with higher credit scores.</p> <p>As expected, our latest study showed that older people generally have higher scores, as has been the case in our <a href="http://www.fico.com/en/blogs/risk-compliance/age-before-beauty-credit-worthiness-before-youth/" target="_blank">past research</a>. 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I further broke this down by looking at the characteristics of the youngest 15% in each group, which occurs at age 29 for the 750-799 group and 43 for the 800-850. We used FICO<strong>®</strong> Score 9 for our analysis, and examined typical variables of the categories that go into the make-up of the score.</p> <p><a href="http://www.fico.com/en/blogs/wp-content/uploads/2016/10/FICO-Score-High-Achiever-table.png"><img class="alignnone size-full wp-image-29367" src="http://www.fico.com/en/blogs/wp-content/uploads/2016/10/FICO-Score-High-Achiever-table.png" alt="fico-score-high-achiever-table" width="715" height="747" /></a></p> <p>Since there’s a lot to dissect in this chart, I’ll highlight a few findings that struck me: <ul> <li><strong>Credit history.</strong> Higher scores are undoubtedly associated with a longer time on file. What’s striking is the higher average time on file for the 800+ group, both overall and for revolving accounts (the most common trade line). 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While 23% of the national population have collection items greater than $99, the figures are only 0.5% for the 800+ group and 3% for the 750-799 group. It is clear that, in conjunction with starting a credit file early, paying on time is a key trait of the FICO® Score high achiever.</li> <li><strong>Balance and utilization.</strong> Finally, we look at how credit is being used, focusing on revolving product use. (Since most people only have one mortgage or one auto loan, variation in instalment product figures is minimal and driven by payment history, which is near perfect for high scorers, as we’ve seen.) FICO® Score high achievers tend to have more open revolving accounts. While the % active trades and utilization are generally lower, by no means do high scorers avoid the use of credit products. What drives the difference here is the amount of <u>available</u> revolving credit utilized. 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It ain’t rocket science!</p>
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