Tag Archives: Credit Risk

For the first time, the average FICO® Score in the U.S. has reached 704, showing a steady upward trend in US credit quality.

Following a slide that lasted four+ years, the FICO® Credit Health Index for Russia began climbing in April 2016 and climbed another 2 points last quarter.

Until now, it has been very difficult for a lender to understand the pressures on any consumer in terms of their ability to absorb more credit and pay off the required instalments, without placing unbearable stress on their finances.

The introduction of IFRS 9 will mean focus is placed on pre-delinquency — treatment of accounts before they exceed limits or miss payments.

FICO WORLD 2018, MIAMI, Florida FICO today unveiled a host of new retail banking solutions that allow lenders to manage the credit lifecycle in a way that is smarter, faster and simpler. The innovations are designed to help support lenders with their digital transformations as retail banking continues to be shaped by the forces of mobile, cloud, analytics and big data. “We have seen remarkable changes in banking in the last two years as lenders accelerate their digital transformation and reinvent the customer experience,” said Tim VanTassel, vice president of FICO’s credit lifecycle business line. “Lenders are engaged in an analytic arms race to find, delight and retain the right customers by determining and deploying differentiated offers and experiences.” Read the full media release here Originate Loans Using Optimized Deal Structures Providing consumers with multiple options for the best-fitting terms in real time has been an industry goal for some time, and... [Read More]

UK cards on books 1-5 years are showing signs of debt stress - here are the facts, as well as recommendations for issuers.

How are advances in artificial intelligence and machine learning changing credit risk assessment? That’s a topic I’ll be exploring in three presentations at FICO World 2018.

Most auto loans booked by banks are originated through indirect channels like Dealertrack and RouteOne, but how many of those new auto loan customers end up becoming long-term customers? Not enough. Banks competing in the indirect auto lending channel can’t stop once they successfully book the loan. That is just the beginning. Banks spend a lot of money to win auto indirect loan customers—from investments in automated decisioning technology that can turn around credit decisions in seconds to special pricing and promotions that will help customers afford the car of their dreams. However, these investments do not guarantee a relationship with the customer that last longer than the term of their new auto loan. So how can banks transform these investments into a sustainable return for their business? We believe it is by applying specific best practices that build relationships with customers that will extend far beyond the terms of... [Read More]

Consumers who are concerned about their level of credit card debt can use a number of options and tactics to keep their credit healthy.