Optimization
Unleash the power of mathematical optimization — use high-performance solvers to model business problems and calculate the best possible decision to maximize your desired outcomes.
Pricing Optimization
Personalize offers balancing business objectives and constraints for profitable, optimal pricing decisions that enhance customer experience.
Strong ROI results using FICO® Pricing Optimization
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Boost in portfolio profits, amounting to $16 million per year
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Increase in new sales, amounting to $41 million the first year
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Increased margins through rate reduction and increased volume
Overview
Set the optimal rate to deliver profitable customers.
FICO Pricing Optimization harnesses the power of prescriptive analytics to create more profitable pricing strategies across the customer journey by putting the right offer into the right hands, at exactly the right time.
With optimization, you can set more granular price strategies that strike the right balance between margin and volume while considering key data points like competitor rates, macro-economic factors, internal goals, and compliance requirements, resulting in finding the best possible solutions within multiple possible outcomes.
Make better pricing strategy decisions using prescriptive analytics
FICO Pricing Optimization enables you to make better and faster pricing strategy decisions to deliver value across your entire portfolio by balancing business objectives and constraints for increased profitability and satisfaction throughout each customer’s journey. It discovers the optimal rate for each loan offer made, while considering revenue, profitability, volume objectives, and regulatory constraints for the best possible experience for your customer and results for your organization.
Loan Pricing Optimization
Identify optimal price points that will increase both lending volume and loan lifetime profitability within specific population segments. Raise take-up rates while reducing the risk of prepayment and bad debt losses.Alternative Deal Structures
Win more deals by reducing competitor offer rehashing, exception requests, and negotiation time. Instantly generate multiple alternative loan offers, all meeting customer needs, regulatory requirements, and your business objectives within portfolio, segment, and customer-level constraints.Deposit Optimization
Maximize portfolio strategy performance and profit, 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.Marketing Offer Optimization
Make the best offer that unites your customer’s values with your business objectives and constraints by optimizing prices in the context of the entire lending offer. Understand how price sensitivity impacts not only demand, but other aspects of customer behavior affecting profitability and risk.
Why FICO?
FICO Pricing Optimization empowers you to make smarter, personalized decisions, streamline operations, and improve customer experience, keeping up with demand. Built on FICO® Platform, it is the only customizable, centralized development and deployment analytics platform that enables multiple stakeholders to collaborate and rapidly create, validate, and launch multiple optimization models as powerful applications.
With more than 60 years of innovation and pioneering work in predictive analytics, machine learning, and artificial intelligence, FICO Platform provides a complete, end-to-end set of composable capabilities that empower you to uniquely address a wide spectrum of use cases across the customer lifecycle.
FICO® Pricing Optimization
Learn how FICO optimization empowers you to optimize multiple variables, resulting in precision and increased profitability.
Case Study
Why rely on guesswork when you can have certainty with optimization?
Six top-performing clients outline how they’re letting prescriptive analytics do the work
“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
Capabilities
FICO solutions offer a wide range of capabilities, empowering you to make smarter, personalized decisions, streamline operations, and improve the customer experience.
From the Blog
Get the latest insights, solutions, and strategies for improving business results from the FICO experts and thought leaders.
Start making smarter pricing decisions today.
Move beyond “one-size-fits-all” by using optimization to pinpoint optimal rates that balance volume, revenue, and profitability objectives.