FICO Recognized for Retail Banking Impact by Chartis Research

Since becoming FICO’s Chief Product & Technology Officer two years ago, my highest priority has been creating features and functions in FICO Platform that allow banks in the retail banking sector to accelerate their innovation and build extraordinary customer experiences for their banks’ customers. And we’re making good progress: over the past two years, the number of retail banking firms basing their loan, credit, and other financial operations on FICO Platform to improve their customer experiences has grown from a dozen to more than 130.

So it was gratifying to see that the new Chartis Research STORM Report on retail banking analytics ranked FICO third out of the top 50 companies in retail banking analytics. FICO also ranked first for “impact,” evidence of how widespread FICO’s banking innovation, technologies and techniques have become in the retail banking analytics industry, as banks focus on financial innovation and customer experiences.

Sid Dash, Research Director for Chartis Research, said that “A wealth of new technology vendors and providers has emerged in recent years, making this an especially pertinent and exciting time to be analyzing these markets. Our goal is to make sense of these changing and dynamic landscapes, and to recognize the companies doing great things within them.”

Chartis identified three major structural themes in the retail banking sector, all of which are well-aligned to FICO’s technology strategy for financial institutions:

1. Machine learning models are now universal in retail banking

Machine learning models in retail banking are standardized, focusing on parameters and inputs, and include optimization for pricing as well as the aggregation, segmentation and profiling of behavioral data. Financial institutions now widely use machine learning in financial planning models for retail customers, for risk profiling in financial planning and in securities. FICO Platform makes it easy for banks to operationalize AI and machine learning models, supporting all leading industry standards, including DMN, BPMN, XML, JSON, JAVA, SAS, R, Python and PMML.

2. Credit risk management and fraud management are converging

As more banks see the similarities in the models and datasets used in both areas, credit risk (as well as other risks in such areas as anti-money laundering) and fraud management are increasingly converging in the retail banking space. Leveraging FICO’s decades-long leadership in helping banks direct both credit and fraud management, FICO Platform helps banks manage this convergence – plus all other sources of consumer banking data and decision assets – to spur banking innovation.

3. There is an increasingly “entity-centric” view of retail data

Bank databases, for example, are increasingly entity-centric in retail banking, whether they have been formatted to be entity or graph databases, or if they continue to employ relational and other Hadoop-style frameworks. FICO Platform provides banks with unmatched capabilities for banking innovation and flexibility by simplifying data integration and manipulation, as well as integrating systems and databases external to the bank.

Accolades from respected bank industry experts like Chartis, Forrester Research and others is a gratifying thing, but we are most proud of the business results our retail banking clients around the world are achieving in their loan, credit, and other banking areas: up to 3x higher revenue than forecasted, 96% faster system modifications, 10x faster solution delivery, 160% YOY automated approvals and 29x ROI after just 89 days. The FICO YouTube channel offers dozens of financial customer case studies from banks around the world showcasing their innovations using FICO Platform, including:

• Wells Fargo, U.S.          
• BMO, Canada
• Trust Bank, Singapore
• Bradesco, Brazil
• Lloyds Banking Group, UK

As the Chartis STORM Report shows, these are exciting times in retail banking analytics and the broader digital banking marketplace. We are proud to be recognized by the experts at Chartis for the quality and innovation of our financial solutions, as well as their impact on the banking industry.

Learn How FICO Platform Can Power Your Digital Transformation and Boost Collaboration

• Explore banking innovation with FICO Platform
• View retail banking customer testimonials on the FICO YouTube channel
• Watch the video “FICO® Platform: Applied Intelligence, when and where it matters”
• See customers discuss their use of FICO Platform
• Read my article on banking innovation in The Journal of Digital Banking, “How Financial Services Leaders Are Using Enterprise Intelligence to Optimize Efficiency Ratios”
• Watch FICO Platform in action with the story of everyday consumer Digital Jane