FICO presented key insights from recent FICO® Resilience Index research and early lender adoption use cases that surfaced during the pandemic-driven downturn at several key industry events early this summer. FICO also previewed FICO® Resilience Index 2, the latest advance in FICO’s groundbreaking product, with more precise insight about a borrower’s resilience to future economic disruption and expanded use cases including bankcard account origination. The latest version of the FICO® Resilience Index delivers 30 to 100 percent gains in resilience predictive power for account origination in mortgage, bankcard, auto, and personal installment lending.
Last summer, FICO announced the FICO® Resilience Index, a new analytic tool designed to complement the industry standard FICO® Score. In the aftermath of the Great Recession, FICO recognized that during periods of heightened economic uncertainty, lenders and investors need to be able to better evaluate and balance portfolios based on ever-changing conditions.
"FNBO worked hard to keep credit flowing to our customers during the pandemic-driven downturn and continue to grant credit line increases to eligible credit card customers. By using FICO® Resilience Index in our line increase strategy, we were able to balance our growth and customer loyalty objectives with prudent management of the additional credit risk that comes with such economic uncertainty," Andrew Haag, Credit Risk, FNBO.
Since announcing the tool, FICO is proud to be named an honoree of the Drexel LeBow Analytics 50, a national recognition of analytics distinction, honoring leading organizations using analytics to solve key business challenges. FICO was honored for creating the FICO® Resilience Index, a new solution needed by the market and designed to help lenders more precisely predict a borrower’s resilience to potential future economic disruptions.
For the past 30 years, FICO has remained committed to bringing impactful innovation to market, and the FICO® Resilience Index is no different. This tool is FICO’s latest solution designed to enable lenders with a more precise assessment of consumer credit risk, while keeping credit flowing throughout uncertain times. The latest FICO® Resilience Index 2 will be available to lenders across all three credit bureaus by the end of summer 2021.
Check out the latest FICO® Resilience Index product details, here.
To learn more, watch the recent Consumer Bankers Association webinar.
Read Tom Parrent, Principal, Quantilytics’ whitepaper on the FICO® Resilience Index.