FICO’s new alternative data pilot program continues to reach out to include unscorable consumers. The pilot program with the new FICO Score XD is underway with 12 of the largest credit card issuers in the U.S.
FICO has introduced FICO Consumer Fraud Control, a new solution for banks that enables their cardholders to configure card usage controls and transactional alerts via the bank’s mobile app.
FICO is teaming up witb LexisNexis Risk Solutions and Equifax to use alternative data to identify creditworthy individuals who would otherwise be unlikely to obtain traditional credit. Card issuers will be able to use the alternative score without having to “rip and replace” existing systems, significantly lowering the cost and accelerating time to market.
FICO is making additional versions of the FICO Score available to consumers. Anyone who buys a product with a base FICO Score 8 from myFICO.com now also receives up to 10 additional FICO Score versions ” five based upon Equifax data and five based upon Experian data.
The payments cards industry profitability has been in the dumper since 2009, but is slowing crawling its way out over the past six years. Payment investment banker and guru R.K. Hammer says this year credit card ROA’s could top 4%.
FICO has been awarded four new patents related to fraud detection and advanced analytics. FICO now holds 170 US and foreign patents, and has 93 pending patent applications.
The largest private credit reporting agency in Malaysia
will offer FICO Scores to all its clients beginning early 2015.
The CTOS-FICO Consumer Credit Score is created by analyzing the information found in CTOS’s comprehensive credit information database.
While most segments of the payment card issuing business are saturated with targeted products, there remains a potentially lucrative market segment that has not been fully developed. The “Near Prime” segment represents new card account applicants who live on the border of becoming prime, but they are just not yet there.
Fico announced the general availability of Fico Debt Manager solution 9.5, with a host of new features designed to help collectors improve productivity while ensuring they are compliant with new regulations. The solution enables collections groups to reduce operating costs, achieve score-driven increases in amounts collected, adjust to changing regulations and increase customer satisfaction. FICO Collection Scores are now available out-of-the box, giving users the ability to assign the right treatment strategy and collector to each individual account, and thereby helping to improve performance. Typical operations that adopt FICO Collections Scores see a three to five percent lift in collections. FICO Risk Intervention Manager clients report being able to handle two to four times the volume at the same cost with better right-party contact rates and improved customer satisfaction.
Fico has been awarded 25 new patents, bringing its patent portfolio to 167 U.S. and foreign patents. These patents were awarded to team members of FICO Labs for inventions underlying the company’s solutions in fraud protection, cybersecurity, predictive analytics and decision management. Ten of the latest patents cover analytic innovations used by FICO’s industry-leading fraud solutions across the financial, healthcare and telecommunications industries. These technologies, many of which are used in the FICO® Falcon® Platform, help improve fraud detection, reduce false positives and improve the customer experience. FICO also received a patent for a consumer-driven secure sockets layer (SSL) modulator. This is a software system and method for executing secure commercial transactions online by enabling unique receipt message encryption to thwart “man-in-the-middle” attacks. FICO was also awarded patents for inventions related to predictive analytics.
Fico partnered with 41st Parameter of Experian to fight fraud on card-not-present (CNP) transactions. FICO is integrating 41st Parameter’s TrustInsight™ with the FICO® Falcon® Platform, which protects 2.5 billion card accounts and is used by more than 9,000 financial institutions worldwide. Authenticating the device being used in a transaction provides yet another layer of detection to the Falcon Platform, which includes proprietary analytics based on more than 30 patents. FICO’s research shows that total card fraud grew 13 percent in the U.S. from January 2012 to September 2013. CNP fraud accounted for nearly half of credit card and debit card fraud during this period. 41st Parameter’s TrustInsight™ solution provides a real-time analysis of a transaction, crowd-sourced from a network of merchants, that produces a TrustScore™ indicating whether the transaction is likely to be genuine and should be approved.
Fico announced The Fair Isaac Advisors P&L Insight Service, giving financial services organizations an analysis of their portfolio trends and profit drivers, along with portfolio-level profitability forecasts and what-if scenarios for strategic planning purposes.Unlike traditional P&L assessments, the P&L Insight Service examines potential impacts across the credit lifecycle, including marketing, originations, customer management and collections. FICO’s advisors can rapidly generate actionable insights using a proprietary FICO tool with built-in forecasting models that can be tuned to the particular dynamics of a bank’s portfolio. Advisors convert 12 to 24 months of portfolio-level data into coherent business intelligence, provide automated trend analysis of profit drivers, deliver actionable and quantifiable recommendations, and assist with strategic planning activities for short-, medium-, and long-range objective-setting.