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.
“We reviewed other decision engines, but the FICO system gives us the greatest sophistication and flexibility,” said Yisroel Perkel, founder and director of Evergreen.
What are the most read blogs in Risk & Compliance in 2018? This blog looks at the top 5 posts last year; unsurprisingly, topics around FICO Scores were of great interest.
When it comes to U.S. regulatory reforms promulgated by federal agencies, there could be some significant and welcome news for financial institutions next year.
In this post, I will share analysis that shows why using account management scores in addition to account origination scores is important.
The Chartis 2019 RiskTech100® report ranked FICO as one of the top 10 companies and FICO won awards in Innovation, AI, and Cyber Risk Quantification.
Organisations will benefit from standing back from the BAU and determining how their analytics and technologies, which identify and support the management of distressed customers, need to change to ensure they secure that competitive advantage.