Category Archives: Risk & Compliance

Risk & Compliance Beyond Generation Z: Digital Account Opening for Everyone

Digital account opening
Oct162018

Here’s the challenge – keep pace with the rapidly-evolving expectations of young consumers entering the market. It was Millennials. Now it’s Generation Z (defined roughly as consumers born after the turn of the 21st century). Generation Z expects nothing less than on-command, transparent and seamless processes when it comes to acquiring virtually any product or service. Want a Starbucks iced-latte-hold-the-milk on your doorstep in less than 30 minutes without ever having to leave your house or pull out your wallet? There’s an app for that. Want your groceries delivered fresh without ever having to leave your couch? There’s an app for that. Need office supplies, home goods, books? There’s apps for them too. And here’s the most important part — you can see when your order is being prepared, when the deliverer picks it up, who the deliverer is, where the deliverer is at all times and you can see... [Read More]

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Risk & Compliance Exploring New Frontiers in Credit Risk Scoring at Money 20/20

Money 2020
Oct112018

One of the most exciting events in the financial services industry is coming in October – Money 20/20, Oct. 21-24th in Las Vegas. Industry leaders and innovators in the Payments, FinTech and Financial Services will be at the event to discuss the ways the industry is revolutionizing the future of money. As a leader in analytics and credit scoring, FICO will be there to showcase thought leadership and new innovations in credit scoring, fraud, originations, and more. FICO CEO Will Lansing will also be speaking during two keynote sessions at the event, including a panel around the power of consumer-controlled data to broaden financial inclusion. Join us at the two can’t miss keynote sessions below on Wednesday, October 24th: October 24 at 9:00 a.m. Pacific: Wake up with the CEO The buck stops with the CEO, so when it comes to understanding the road ahead it is vital to understand... [Read More]

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Risk & Compliance Machine Learning and the FICO Score

Machine Learning and the FICO Score
Sep282018

Greetings from sunny (and humid) Miami!  I had the pleasure of speaking on a panel at ABS East yesterday, entitled “Traditional vs Non-Traditional Underwriting, Does Machine Learning Teach Us Anything New?” The panel primarily focused on the opportunities and challenges associated with the use of Machine Learning (ML) in credit underwriting.  I called out some highlights from FICO’s recent white paper on this subject. (We will dive into this further in future blogs so keep an eye out.) On the ‘opportunity’ side, I cited: The speed to powerful insights that ML offers, making it ideal for R&D efforts aimed at assessing new analytic challenges, and/or the potential of new data sources to add incremental lift. The great strides we’ve made at FICO as far as developing explainable artificial intelligence (AI)/ML and how that enables us to understand better than ever before what the key variables and risk patterns are that... [Read More]

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Risk & Compliance Employee Purchase Cards: Reducing the Spend and Risk

Employee Purchase Cards
Sep272018

Employee purchase cards (P-Cards) are work credit cards that are provided by most universities and state governments to many of their employees for smaller, routine purchases. These P-Cards can streamline the process of making purchases, saving the organization both time and money. P-Cards are much more cost effective than using the full procurement processes (soliciting three bids, etc.) for smaller purchases, such as an item costing $15. The challenge for most organizations is that while P-Cards can provide a cost-effective and efficient tool for small dollar purchases, they can also easily be abused. Managers and auditors are tasked with reviewing P-card purchases but often, given their other workloads, these purchases are not adequately reviewed. Employee Purchase Cards – Why Use Them? In a typical procure-to-pay process, five percent of transactions account for 90% (or more) of the total spend. These larger transactions rightfully require significant controls, contracts and approvals. P-Cards can dramatically... [Read More]

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