Campbell Scott

In the UK, affordability risk has been the subject of increased scrutiny by the Financial Conduct Authority, which, in consultation with lenders, has begun a process of stricter control in terms of treatment of consumers and assessment of their financial vulnerabilities. The goal has been to stop the rising numbers of British borrowers in a state of persistent debt.…

Lenders are looking for new ways to connect with the estimated 3 billion people worldwide who fall outside the credit mainstream. These “credit invisibles” don’t have credit cards, bank accounts or credit history — so how can a lender assess their risk? To tackle this issue, FICO has launched a Financial Inclusion Initiative that leverages emerging technology, innova…

When young Russians apply for their first credit card at Sovcombank, they go through a fun, interactive survey that starts with the question, “How do you feel today?” What they’re doing is participating in a new type of psychometric credit scoring that could expand credit in markets worldwide. The scoring methodology was developed by EFL Global and marketed by FICO a…

We’ve been blogging about our recent survey, conducted with Chartis, where we queried global financial institutions (FIs) about their capital adequacy programs. As part of the survey, we asked FIs about their practices in model risk management. What we discovered is that following industry-standard best practices is the exception, not the norm. Regulators mandate tha…

Regulators in Europe and the US are mandating that financial institutions (FIs) embed stress testing into their Internal Capital Adequacy Assessment Process (ICAAP). But as shown by our recent survey of global FIs, conducted jointly with Chartis, most treat these stress tests purely as a regulatory compliance exercise. They are, therefore, missing a key opportunity to…

Working with Chartis, we recently completed a global survey of financial institutions about their current capital adequacy regimes. Not surprisingly, we found that many still struggle with both the pace of regulatory change as well as the best way in which to implement capital adequacy programs. After the financial crisis, a number of major reforms and new regulation…