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

Credit Union Penny is a mid-size credit union looking for ways to grow amid increased competition. It knows there must be ways it can optimize its originations process. Credit Union Penny can optimize its originations process and grow its business by combining FICO® Member 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. Member Score, on the other hand, focuses on the data that only credit unions have access to. Member Score is extremely predictable over time, uses a powerful segmentation scheme, and considers a wide array of data. By combining these two scores, Credit Union Penny can amplify the data for each member, 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.