LONDON — May 24, 2012 — FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today released its quarterly UK cards data showing that delinquencies have fallen over the past six months. For so-called “classic” (non-premium) credit cards, less than 5 percent of the balances on all cards were 30 days delinquent in March, which represents a two-year low.
In February and March, the percentages of accounts that were 30 days delinquent also were lower than at any point in the last two years. In addition, the percentage of accounts that are over limit has also declined over the last six months, hitting a two-year low of 2.6 percent in March.
The latest data from the FICO® Benchmark Reporting Service showed a clear downward shift in delinquent balances across all vintages of classic cards, though newly opened cards have shown more turbulence over the past few months than established or veteran accounts. FICO defines established accounts as those on the books for one to five years, and veteran accounts as those on the books for longer than five years.
“We’re seeing some seasonal effects in card trends, such as a decline in interest income, which is common after the holidays,” said Mike Gordon, FICO vice president and managing director for Europe, the Middle East and Africa. “What’s remarkable is the non-seasonal, longer-term pattern of decline in delinquent accounts. By making timely payments, cardholders are avoiding late-payment fees and protecting their option to seek new credit if needed — both sound moves given the economic stress of recent years.”
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 vs. the industry, with 24 months’ worth of data. For greater insight, subscribers can drill into the data by vintage of accounts. For information on the FICO Benchmark Reporting Service, contact Stacey West at firstname.lastname@example.org.
FICO (NYSE:FICO), formerly known as Fair Isaac, 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 industry-leading solutions for measuring credit risk, 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. Learn more at www.fico.com. 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, 2011 and its last quarterly report on Form 10-Q for the period ended March 31, 2012. 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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