If you’re looking for evidence of how predictive analytics and decision management technology can transform business results, you can start with the winners of the 2012 FICO Decision Management Awards. Fiserv, Interbank, President’s Choice and insurer Universal American were named winners of our second set of awards today.
For more information on why these companies won, see our news release, but it’s worth calling out some highlights from the banking winners:
President’s Choice Bank received the Analytic Excellence Award for its use of FICO decision optimization software and FICO consulting to develop a custom credit line management strategy that enabled PCB to adapt to new Canadian regulations, which require banks to obtain express consent from a cardholder prior to granting a limit increase. PCB reported a 400 percent lift in qualifying volumes (offers) and responses using the optimization-derived credit line increase strategy vs. the former strategy, as well as an increase of $750+ in sales, $200+ in receivables and $12+ in profit per targeted account.
Banco Internacional del Peru (Interbank) received the Credit Risk Management award for its new credit management system, based on FICO software, which has improved the effectiveness, agility and homogeneity of the credit-setting process. Interbank is able to assess an applicant for multiple products. This has facilitated a healthy growth of Interbank’s credit card market share from 16 percent to 21 percent, making the bank the top issuer in the market, while the bank reduced by 75 percent the number of employees needed to manage credit evaluations.
Fiserv received the Fraud Control Award for the development and implementation of its Risk Office consulting service, which leverages FICO Falcon Fraud Manager to provide customized fraud mitigation services to subscribing financial institutions. In the last five years, almost 1,000 debit, credit, and prepaid card issuers have subscribed to Risk OfficeSM, and on average they enjoy an approximate 60% reduction in reported fraud basis points, compared to non-subscribing clients.
Optimization, customer-level decisions and improved fraud detection are all familiar themes to readers of this blog. These companies are showing how excellence in these areas produces tangible wins for the business.
I’d like to thank our judging panel for their work this year: Douglas Blakey, editor, Retail Banker International; Brian McDonough, research manager, Business Analytics Solutions, IDC; Chris O'Brien, technology columnist, San Jose Mercury News; Karen Pauli, research director, CEB TowerGroup; and James Taylor, CEO, Decision Management Solutions.