Category Archives: Risk & Compliance

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

Taking Quiz FICO Scores
Apr162019

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

Consumer data
Apr092019

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
Apr072019

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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Risk & Compliance Procure-to-Pay, 3 Ways Analytics Reduces Risks and Costs

procure-to-pay
Apr032019

There have been numerous articles throughout the year about government organizations and universities lacking the staff and tools to review 100% of their transactions. Most of the issues with procure-to-pay compliance arise because many staff reviewing transactions are more focused on completing their review than on the quality of the review. This can result in improper transactions slipping through, which has the potential to expose the organization to risk, bad audit findings and reputational damage. It is becoming clear that legacy systems and staffing simply aren’t sufficient. Analytics is critical to help monitor procure-to-pay transactions because it is fast, unbiased and can find hidden issues within the data. This article from the State of West Virginia is a perfect example: “More than 17% of Purchase Card transactions lacked sufficient documentation”.  Not all of these transactions were improper, but the lack of documentation when spread across 126,000 annual P-Card transactions in West... [Read More]

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Risk & Compliance Reinventing Originations in the Digital Era

Digital
Mar262019

In today’s fast-paced, technology-driven society, market incumbents across a variety of industries have had to reinvent themselves in the face of massive digital disruption. Before the iPod, music industry executives couldn’t fathom the idea that consumers might prefer to buy individual songs rather than a whole album. Before Uber or Lyft, taxi company executives couldn’t imagine consumers would be comfortable summoning unlicensed strangers to pick them up in their cars and drive them around. Not every industry experiences these same tectonic shifts and not every company ends up getting run out of business by an Apple or an Uber. However, avoiding this fate requires market incumbents in every industry to consistently and rigorously evaluate the ways in which they are harnessing emerging technologies to meet their customers’ evolving expectations. So where does this consumer experience driven, digital world leave financial institutions?  The answer of course, is “it depends.” For some,... [Read More]

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