FICO Data: UK Consumers’ Spending per Credit Card Hits 10-Year High, While Delinquencies Continue to Fall

LONDON — March 13, 2014 — FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today released its quarterly UK cards data showing that average spend on “classic,” non-premium credit cards hit a 10-year high in December 2013. In addition, the proportion of classic UK credit cards with no delinquencies also hit a 10-year high.

Data from the FICO^® Benchmark Reporting Service show that sales per average card rose £74 to £612 between December 2011 and December 2013. Veteran accounts (open for at least five years) drove this growth, with average sales per card rising £101. In the same period, average sales grew by £46 for cards open less than five years, and fell by £35 for cards opened within the last year. Average sales per classic card hit their low point of £339 in September 2003.

Nearly 95 percent of classic cards were current (no delinquencies) in December 2013. For 2011, the figure was just over 93 percent.

“UK consumers are fueling the economic recovery and card trends bear this out,” said Stacey West, a Fair Isaac^® Advisors business consultant who works with UK card issuers. “Positive results for delinquency measures and payments to balance indicate that cardholders with more mature accounts have renewed confidence in their ability to repay card balances. Our latest data shows a number of positive trends for both classic and premium cards.”

The FICO Benchmarking Reporting Service also showed positive trends for credit lines and payments. Average credit lines have risen to £4,364, their highest point since June 2009. Cardholders are paying off more of their balance each month, with the percentage of payments to balance rising from 23,4 percent in December 2011 to 27,5 percent in December 2013.

About FICO^® Benchmark Reporting Service
The card performance figures are part of the data shared with subscribers of the FICO^® Benchmark Reporting Service, which compares overall market performance in the UK cards market with individual card issuers’ performance. The data sample studied represents 26 million accounts, or about half of all credit cards issued in the UK, and comes from client reports generated by the FICO^® TRIAD^® Customer Manager solution in use by most UK card issuers.

Card issuers that subscribe to the FICO Benchmark Reporting Service receive a quarterly review of their portfolio compared to the industry, with 24 months’ worth of data. For greater insight, subscribers can explore the data by vintage of accounts. For information on the FICO Benchmark Reporting Service, contact Stacey West at staceywest@fico.com.

Über FICO
FICO (NYSE: FICO) ist ein führender Anbieter von Predictive Analytics und Softwarelösungen für Entscheidungsmanagement, das Unternehmen in über 90 Ländern dabei unterstützt, bessere Entscheidungen zu treffen, um Wachstum, Profitabilität und Kundenzufriedenheit zu steigern. Der zukunftsweisende Einsatz von Big Data und mathematischen Algorithmen zur Erstellung von Prognosen zum Kundenverhalten hat ganze Branchen grundlegend gewandelt. Die Analytics-Softwarelösungen und -Tools von FICO werden in den verschiedensten Branchen verwendet, um Risiken und Betrugsfälle zu verringern, profitablere Kundenbeziehungen aufzubauen, Abläufe zu optimieren und strenge regulatorische Vorgaben zu erfüllen. Many of our products reach industry-wide adoption. These include the FICO^® Score, the standard measure of consumer credit risk in the United States. FICO-Lösungen integrieren Open-Source-Standards und Cloud Computing, um so maximale Flexibilität und schnelle Bereitstellung zu ermöglichen und Kosten zu reduzieren. Das Unternehmen hilft Millionen von Menschen dabei, ihren persönlichen Kreditstatus zu verwalten. FICO: Make every decision count™. For FICO news and media resources, visit www.fico.com/news.