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September 19, 2011
LONDON—September 19, 2011—FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today released Q2 card data showing that the steady performance of most UK cards is continuing, with a slight indication of increased risk. The data also shows the markedly weaker performance of student cards and of euro cards (issued in Ireland).
The 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, along several metrics. 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.
Looking at the last year and a quarter of data, several patterns emerge:
“The data we compile from our FICO TRIAD clients represents a detailed snapshot of plastic performance in the UK,” said Mike Gordon, FICO vice president and managing director for Europe, the Middle East and Africa. “Our latest benchmark reports do indicate a slight tendency toward weaker performance, as the UK economy continued a rocky recovery with high unemployment. Clearly, the economy is causing more distress to students and to Irish citizens.”
FICO Benchmark Reporting Service subscribers 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.
Source: FICO Benchmark Reporting Service.
Cash withdrawals, having fallen since summer 2009, are slightly rising again.
The percentage of accounts that are two cycles delinquent is steady for most cards. However, student and Euro (Irish) cards show greater volatility in terms of delinquency patterns, and are markedly higher than classic and premium cards.
Overlimits remain steady, with Euro (Irish) and student cards markedly higher and more volatile. The spike in April is due to fee assessments.
About FICOFICO (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. FICO: Make every decision count™. For FICO news and media resources, visit www.fico.com/news.
Statement Concerning Forward-Looking InformationExcept 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.FICO and “Make every decision count” are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries.
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