FICO discusses risk management challenges in Cards International

A recent Cards International article explores the challenges of risk management in a dynamic economy and implications of the CARD Act, as well as new analytics-driven solutions that can help. In the article, FICO blog author Chisoo Lyons discusses how the economic downturn has heavily constrained the creativity of risk and profitability management:

“Credit card profitability is deeply constrained by the risk environment, and issuers are spending more time explaining to other people what they are doing on compliance, rather than to use analytics to get themselves out of the rabbit hole… There is a real competitive opportunity in analytics, but people are so bogged down with the day-to-day.”