Unless you’ve been off the grid for most of the year, you know that solvency and credit risk are dominating concerns for European banks and governments these days. Predictive models have long been vital tools for driving safe, effective lending decisions at the retail and commercial level, but recently the demand for greater transparency around these models has sharply increased.
At an IDC event held last week in Europe, FICO highlighted how banks can improve risk management, regulatory compliance and competitive advantage by strengthening their management of predictive models, such as those used to measure customers’ credit risk.
Last year, FICO released our FICO® Model Central™ Solution to provide a complete environment for managing predictive models in a reliable, automated and integrated way. It presents a management dashboard of overall model health, alerting personnel to performance degradation so they can take action before business decisions are adversely impacted. The solution can also accelerate the deployment of predictive models into a bank’s operational systems, which allows tomorrow’s decisions to better utilize the most recent behavioral shifts. An IDC Financial Insights white paper on this topic is scheduled for release in July, and you can also read our news release for more details.
While this isn’t a cure for what’s ailing our global economies, it can certainly illuminate the health of operational credit decisions and improve tomorrow’s actions.