SINGAPORE—August 11, 2011—FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today announced that it has won an engagement with China Minsheng Banking Corporation (CMBC) to provide Basel II compliance consulting, analytic services and support. In addition to ensuring Basel II compliance, the project is part of CMBC’s initiative to focus on small and “micro” businesses by using data-based risk management tools and analytics.
Through this initiative, CMBC is expected to reduce its capital reserve requirement. FICO’s assignment with CMBC includes testing and verifying the existing grading model; designing new grading models for application, transaction and collection in the small and “micro” business, retail and credit card businesses; conducting pool assignments of risks; and estimating PD, LGD, EAD and other risk indicators. In addition, the FICO team will develop strategies for retail products and advise on IT requirements.
Following a rigorous competitive review, CMBC selected FICO based on the company’s deep experience with Basel II implementations and its proven analytic capabilities.
“FICO impressed us with their grasp of Basel II challenges, their leadership in risk management for small business customers, and their experience with similar projects in China and around the world,” said Zhao Jichen, member of the Basel II Implementation Steering Committee of CMBC. “This initiative will allow CMBC to improve its risk management while reducing capital requirements, thereby freeing up capital to fuel additional growth.”
“Basel II compliance is critical for a healthy and sustainable retail credit industry to emerge in China,” said Dan McConaghy, president and general manager, FICO Asia Pacific. “True to its reputation as an innovative industry leader, CMBC has taken a big step in embracing advanced risk assessment tools and analytics.”
FICO is currently working with 11 of the top banks in China to mitigate credit risk, profitably grow portfolios, adapt to regulatory change and mitigate fraud risk. The Basel II project marks FICO’s first engagement with CMBC.
About China Minsheng Banking Corporation
Established in 1996, CMBC is the first national joint-stock commercial bank with shares mainly from non-public enterprises. It was listed in the Shanghai and Hong Kong stock exchanges in 2000 and 2009, respectively. During its 15 years of operations, it has made various institutional innovations, such as “independent evaluation system” and “business institutional reform.” CMBC has not only attracted attention from economic and financial circles both at home and abroad but also created a fertile test field for carrying out reform in China’s banking industry. Standing at a new historical starting point, CMBC sets its market position as a bank "working for private enterprises, small and micro-enterprises, high-end customers" and aims to become “a featured bank with high efficiency”. With its rapid development in small and “micro” business, CMBC exceeded 200 billion yuan in its balance of loans in July 2011, surpassing Wells Fargo of the United States. The bank also will launch Credit Factory, a risk management platform for small and “micro” business, soon.
FICO (NYSE:FICO) delivers superior predictive analytics solutions that drive smarter decisions. The company’s groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO’s innovative solutions include the FICO® Score — the standard measure of consumer credit risk in the United States — along with industry-leading solutions for managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world’s top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. FICO also helps millions of individuals manage their personal credit health through www.myFICO.com. Learn more at http://www.fico.com/cn. FICO: Make every decision count™.
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Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company’s Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2010 and its last quarterly report on Form 10-Q for the period ended June 30, 2011. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.
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