New Frontiers for Applied Intelligence: Innovations on FICO Platform
Explore the forthcoming capabilities for business decision-making and applied intelligence based on AI, composability and more
The Intelligence Revolution has been marked by dramatic advancements in technology and artificial intelligence. These advances are reflected, and in many cases led, by the innovations we have released in FICO Platform. On the stage at FICO World 25, I had an opportunity to preview the next wave of innovations coming later this year, which will redefine the applied intelligence category and establish the next horizon of growth for our clients’ businesses.
In the span of a year, technology and AI have evolved at an astonishing pace, and the impact of this progression has been profound. For us, this means harnessing the power of machine learning, predictive analytics, and real-time decision-making to deliver solutions that are smarter, faster, and more intuitive. FICO Platform is designed to adapt to these rapid changes, providing tools that empower businesses to stay ahead of the curve.
A key focus has been integrating AI into decision-making processes on the platform. This integration not only enables more accurate predictions but also offers the flexibility to respond to dynamic market conditions. For example, innovations in AI-driven risk assessment are helping businesses make safer, more informed decisions, even in uncertain economic climates.
The Next Chapter of Applied Intelligence
Here's a glimpse into what’s on the horizon:
Next-Gen Feature Management
Features transcend all FICO Platform use cases, meaning they are shared across the platform and inherently promote expanded reuse and return on investment across your use case landscape. This amplification benefits investments in areas such as fraud, marketing, customer management, and collections. Features now manage their own state. This means that features adapt in real time to market and business changes, ensuring they are always up to date with the latest information. The data is federated, eliminating the need for investments in data warehouses or data normalization. Data lineage is automatically tracked to use cases for audit and business outcome measurement. Traditional ETL processes are replaced by validation and transformation services that simplify and automate data integration.
We have added automatic persistence for features on FICO Platform, removing the need to establish databases or manage the data manually. Intelligent agents now check for logic flaws in feature calculations and automatically sequence these calculations.
Next-Gen Composition
Next-gen composition simplifies the creation of new use cases without requiring scripting, coding, or data integration. Composed capabilities are intelligent, knowing how they work, execute, test, and visualize their outcomes inherently. They are also data-aware, automatically integrating with features on the platform. This streamlining allows the reuse of configurations without complex skills. Composition includes fully self-declared lifecycle management with user-defined workflows, approvals, tracking, and governance options, ensuring compliance and audit readiness.
Next-Gen Decisioning
The next-generation decisioning capabilities that we are introducing are unified metaphors that ease the authoring and visualization processes, fundamentally changing how decisioning is approached. Decisions will be analytic-ready for data-driven improvement, traceable, and equipped with persistent audit trails to understand outcomes. Like compositions, decisions are data-aware, self-aware, and outcome-aware, driving next-generation decision intelligence.
Next-Gen Deployment
Deployment management offers fully client-controlled deployment without provisioning, enabling automatic upgrades with integrated testing. This ensures access to the latest features while simplifying elastic compute with a full control plane. Deployment management provides self-healing and automated recovery, along with multi-regional synchronization of configurations and states. This allows operations at multi-region speeds equivalent to single-region functionality.
Creating an Enterprise Fraud Solution
With this version of FICO Platform, we are empowering enterprise fraud solutions. Existing FICO Falcon Fraud Manager models are incorporated into the platform architecture, simplifying adoption and ensuring backward compatibility. Independent data and model expansion offer flexible scaling and predictive power for unique business outcomes. Enhanced execution supports thousands of features in high-throughput, low-latency operations, with predefined features from FICO and third parties facilitating rapid adoption.
The platform also introduces AI-based outcome assistance, robust profile feature management, and enhanced execution across multiple contexts. A public and private marketplace provides access to FICO enterprise fraud solutions, third-party capabilities, and configurable enterprise marketplaces for internal collaboration and asset sharing.
Empowering You: The True Purpose of Innovation
At the heart of every innovation lies a singular goal: to empower you. The tools and technologies we develop are designed not only to solve problems but to inspire possibilities. Whether it’s through AI, predictive analytics, or personalized experiences, FICO Platform is built to serve your needs and adapt to your vision.
As we look to the future, I am filled with optimism about what lies ahead. The Intelligence Revolution is far from over; in fact, it’s just beginning. The innovations we’ve introduced on FICO Platform are a testament to what we can achieve when we combine our collective expertise and vision.
In the coming months and years, we will continue to push the boundaries of what’s possible. From exploring new AI applications to refining predictive tools and enhancing user experiences, our focus remains steadfast: to deliver solutions that empower you to lead in this era of transformation.
How FICO Platform Can Help You with Applied Intelligence
- Explore FICO Platform
- Discover the new FICO Marketplace
- Watch Nikhil Behl’s keynote at FICO World 25
- Watch the video “FICO® Platform: Applied Intelligence, when and where it matters”
- See clients discuss their use of FICO Platform
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FICO® Score High Achievers: Is Age the Only Factor?
<p>FICO’s latest research on <a href="http://www.fico.com/en/blogs/risk-compliance/us-credit-quality-rising-the-beat-goes-on/" target="_blank">national FICO® Score distribution</a> shows that US credit quality continues to trend upwards, with an increasing number of consumers scoring in the highest scores ranges. Given that, we decided it was time to refresh our study on “<a href="http://www.fico.com/en/blogs/risk-compliance/infographic-what-does-a-high-credit-scorer-look-like/" target="_blank">FICO® Score high achievers</a>,” where we examine the credit behavioural profiles of consumers with higher credit scores.</p> <p>As expected, our latest study showed that older people generally have higher scores, as has been the case in our <a href="http://www.fico.com/en/blogs/risk-compliance/age-before-beauty-credit-worthiness-before-youth/" target="_blank">past research</a>. This is largely because they have trade lines that have been open longer, which leads to higher scores (assuming the trade lines are in good standing and all other things equal). The most credit savvy among you will remember that length of credit history accounts for roughly 15% of the overall <a href="http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx" target="_blank">FICO® Score calculation</a>.</p> <p>But for younger consumers, it isn’t too helpful to say, “just wait until you are 50 years old, and that will fix things!” Thus, I decided to dive deeper with our analysis, including looking at the credit behavioural characteristics of younger consumers with high FICO® Scores.</p> <p>In this analysis, I looked at credit characteristics for the two highest score bands, 750-799 and 800-850, which have about 16% and 23% of the population, respectively. I further broke this down by looking at the characteristics of the youngest 15% in each group, which occurs at age 29 for the 750-799 group and 43 for the 800-850. We used FICO<strong>®</strong> Score 9 for our analysis, and examined typical variables of the categories that go into the make-up of the score.</p> <p><a href="http://www.fico.com/en/blogs/wp-content/uploads/2016/10/FICO-Score-High-Achiever-table.png"><img class="alignnone size-full wp-image-29367" src="http://www.fico.com/en/blogs/wp-content/uploads/2016/10/FICO-Score-High-Achiever-table.png" alt="fico-score-high-achiever-table" width="715" height="747" /></a></p> <p>Since there’s a lot to dissect in this chart, I’ll highlight a few findings that struck me: <ul> <li><strong>Credit history.</strong> Higher scores are undoubtedly associated with a longer time on file. What’s striking is the higher average time on file for the 800+ group, both overall and for revolving accounts (the most common trade line). Clearly, it helps to start credit use early in life – but that’s not the sole determining factor for high scoring. The younger cohorts in both the 800+ and 750-799 groups have time on file medians significantly less than their older counterparts.</li> <li><strong>New credit.</strong> High credit scorers do, in fact, pursue new credit. We see little variation in months since last trade line opening and last inquiry among all groups observed.</li> <li><strong>Pay on time.</strong> As you might expect, the further in the past the delinquency, the higher the score – and that’s <u>if</u> a delinquency ever happened. 95% of the 800+ people and 72% of the 750-799 group have never been delinquent, which is a striking contrast to the 57% for the total population. The percentages for the younger groups are even higher, especially so for the 750-799ers. Collection items are also scarce for these high scorers. While 23% of the national population have collection items greater than $99, the figures are only 0.5% for the 800+ group and 3% for the 750-799 group. It is clear that, in conjunction with starting a credit file early, paying on time is a key trait of the FICO® Score high achiever.</li> <li><strong>Balance and utilization.</strong> Finally, we look at how credit is being used, focusing on revolving product use. (Since most people only have one mortgage or one auto loan, variation in instalment product figures is minimal and driven by payment history, which is near perfect for high scorers, as we’ve seen.) FICO® Score high achievers tend to have more open revolving accounts. While the % active trades and utilization are generally lower, by no means do high scorers avoid the use of credit products. What drives the difference here is the amount of <u>available</u> revolving credit utilized. The 800+ group is roughly 1/4 of the national median, both in total and on their highest utilized card; they also have lower balances and more cards<em>. </em>The 750-799 group is more active and higher utilized, but still only at 2/3 of the national figures. The young 750-799 group compensate with lower revolving balances and, as a result, lower utilization, which is in line with what we see for the 800+ group.</li> <li><strong>Benchmarks.</strong> I’d like to point out that while this study provides good benchmarks of the typical credit traits of the FICO® Score high achiever, individual credit profiles will vary widely. And keep in mind that when we sort groups of consumers as a whole by different behaviours, some results may look superficially odd. For example, the 800+ band has a longer median average open account time (128 months) than average revolving months on file (140 months).</li> </ul> So, what do we conclude? A huge takeaway is that high scorers don’t have too much in the way of serious delinquencies and negative public record data.</p> <p>In most respects, the young 800+ people are like their peer group. They really only differ markedly in their shorter credit history and higher non-mortgage balance, both of which are a function of life stage. Our results show that you don’t have to be a credit product hermit; these high scorers have more credit cards. The takeaway is to start credit activity early and maintain well-managed and moderate usage.</p> <p>In many ways, the young 750-799 people are more interesting because their age profile is much younger. Their credit characteristics differ more from their peer group, particularly in terms of length of credit history. They compensate by having almost pristine credit records and lower balances.</p> <p>Ultimately, 39% of US consumers are FICO® Score high achievers, which they accomplish by following common-sense credit practices. It ain’t rocket science!</p>
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