Case Study: "Bank Penny" optimizes its originations process using both FICO Score and FICO Customer Score

Bank Penny is a mid-size bank looking for ways to grow amid increased competition. It knows there must be ways it can optimize its originations process. Bank Penny can optimize its originations process and grow its business by combining FICO® Customer Score with FICO® Score. The FICO Score allows financial institutions to utilize risk assessment data to gauge an individual’s creditworthiness and is well documented for its effectiveness. Customer Score, on the other hand, focuses on the data that only banks have access to. Customer Score is extremely predictable over time, uses a powerful segmentation scheme, and considers a wide array of data. By combining these two scores, Bank Penny can amplify the data for each customer, making it possible to create a multifactor credit evaluation grid.1 The combination of these two scores ultimately allows for a higher approval rate without an increase in risk.