FICO 8 Lender Validation Results

In recent validation testing, a top US bankcard issuer confirmed that the new FICO^® 8 Score and FICO^® 8 Bankcard Score provide significantly greater risk prediction over a previous FICO^® Score version. Based on a conservative estimate, FICO projected a financial benefit for the lender of $1,8 million to $5,5 million through conversion to the new scores. This paper details the validation and its findings, highlighting how both new FICO^® 8 Scores can help issuers boost profitability by reducing portfolio risk, mitigating losses, and identifying and capitalizing on new revenue opportunities.