“FICO’s DMP has helped us consolidate multiple underwriting processes and solutions across the enterprise into a centralized underwriting/decision management platform that can scale across verticals, product lines and regions."
Here's how decision optimisation can improve cardholders' strategies to comply with persistent debt regulation and help consumers meet their credit burdens.
My last two posts on persistent debt in the UK focused on compliance and prevention. Here’s a different angle: Can issuers actually compete in this area?
Following on from my previous post on persistent debt, here I’m tackling the topic of preventing customers from falling into persistent debt.
While issuers have already started the actions prescribed by the FCA's persistent debt regulations, there is still a sizeable amount of work to complete and opportunities to be identified.
TPRM is why T-Mobile, one of the leading US mobile carriers, has signed on to use the FICO® Cyber Risk Score as a key quantitative risk metric in its vendor management program.
With over £40 billion of unused exposure on inactive UK cards and over £50 billion on active UK cards there is the potential for huge losses if consumers start to eat into these limits.
When we look at how card issuers are dealing with three key factors — the performance of delinquent credit card portfolios, the actions on the persistent debt cohort and the operating model adjustment to mitigate against unnecessary impact of IFRS 9 — what is interesting is what we don’t see.
Our analysis of UK cards data from the FICO Benchmarking Service has revealed some troubling trends in UK cards delinquencies. All average delinquent balances reached over two-year highs in the fourth quarter of 2018.
Following on from evaluating the roll rate results, this blog looks at the static delinquency levels, accounts remaining at the same level of delinquency.