Optimization for Financial Services

Deliver value across your portfolio and balance business objectives and constraints for more profitable decisions throughout every customer journey.

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Overview

Increase ROI from financial services analytics by adding optimization

Never before have financial services had to make so many complicated decisions with profitability consequences so quickly. Consumers expect great customer experiences — like fast onboarding, tailored product/service choices, and self-serve options for resolving past-due accounts. To deliver these in the most profitable way, add optimization to predictive analytics. Know not only how customers will likely behave, but also your best options for what to do. Learn more about optimization for financial services.

Capabilities

FICO solutions offer a wide range of capabilities, empowering you to make smarter, personalized decisions, streamline operations, and improve the customer experience.

Loan Pricing Optimization

Identify price points that will increase both lending volume and loan lifetime profitability within specific population segments. Raise takeup rates while reducing likelihood of prepayment and bad debt losses.

Mortgage Pricing Optimization

Simultaneously expand both mortgage volume and margins by understanding how much price elasticity you have to work with by granular segments. Pinpoint the right price — not higher than the segment is willing to pay and not lower, so you don’t leave revenue on the table.

Alternative Deal Structures Optimization

Win more deals by reducing offer rehashing, exception requests, and negotiation time. Instantly generate multiple alternative offers, all meeting customer needs, regulatory requirements, and your business objectives within portfolio, segment, and customer-level constraints.

Marketing Offer Optimization

Optimize prices in the context of the entire offer. Understand how price sensitivity impacts not only demand, but other aspects of customer behavior affecting profitability.

Deposit Pricing Optimization

Maximize portfolio performance, accurately forecast liquidity, and balance growth and profitability targets. Improve customer satisfaction and your ability to maneuver in changing markets by increasing pricing flexibility. Understand how a change in segmentation or business constraints would impact prices, customer behavior, and KPIs.

Credit Line Management Optimization

Shift more of your available exposure to your most profitable customer segments. Know when accepting slightly higher losses will increase average profit per account — and by how much.

Collections Optimization

Identify collection strategies that will increase amount collected without increasing operating costs. Maximize net present value (NPV) with the right debt restructuring. Know when offering a settlement — and at what amount — will increase overall profitability.

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When the strategy went live, it outperformed our expectations. APP increased 26%, and new sales increased 29%, without an increase in credit risk costs.

Zuzana Sloukova
Retail Risk, Česká Spořitelna

Typical FICO Client Successes

26
%
Boost in portfolio profits
1
Million from increased transaction approvals
6
6:1 ROI generated in just 6 months
Case Study

Beyond the Software

How Five Financial Services Companies Are Using Optimization to Change the Way Decisions Are Made
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Case Study

Decision Management Award Success Story

Leading Czech bank optimizes pricing, boosts portfolio profit by 26%
Case Study
Case Study

Banco Ficohsa Increases Sales and Profits by Millions of Dollars with Decision Management Technology

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Decision Management and Optimization
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Decision Management and Optimization
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Decision Management and Optimization
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Make smarter decisions faster with FICO Xpress Optimization

1

Pricing Optimization

Move beyond “one-size-fits-all” by using optimization to pinpoint optimal rates that balance volume, revenue, and profitability objectives.
2

Deposits Pricing Optimization

Maximize portfolio performance, accurately forecast liquidity, and increase customer satisfaction.
3

Marketing Offer Optimization

Make the best offer that unites your customer’s values with your business objectives and constraints.