FICO

OCTOBER 5, 2017

Now that EFL has partnered with FICO to sell our alternative credit scores, we get a lot of questions from FICO’s clients. In this and the next few blog posts, I am going to address the most common ones. How Is EFL Different from Other Alternative Credit Scores ? What character traits are predictive of credit risk?

Credit Risk 72

Credit Risk Assessments Database P2P 72

FICO

JANUARY 4, 2018

What were some of the most interesting risk analytics topics last year? Judging from the views on the FICO Blog, risk professionals are keenly interested in new ways to approach risk analytics. A New Way to Score Credit Risk – Psychometric Assessments. Using Alternative Data in Credit Risk Modelling.

Risk 58

Risk Posting Credit Risk Regulatory Compliance 58

FICO

JANUARY 25, 2018

In a previous blog , I defined what is meant by a security or cybersecurity posture. You need to understand the liability and exposure to risk your business has and this cannot be achieved without accurate measurement. As my colleague Doug Clare wrote in his blog , connectivity creates aggregate risk. Credit risk.

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Cybersecurity Risk Assessment Data Breach Due Diligence 49

FICO

JUNE 2, 2023

Home Blog Feed test Icing on the Cake: How the FICO Score and alternative data work best together Significant attention has been paid recently to the potential for use of alternative data to enhance the predictiveness and inclusiveness in credit scoring. More than 200 million U.S.

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Credit Risk Financial Inclusion Risk Assessment Assessments 52

FICO

JANUARY 4, 2018

As artificial intelligence applications exploded last year, our blog posts on AI and machine learning drew thousands of readers. Indeed, taken together, they explored many aspects of Explainable AI and its applications, particularly in the area of credit risk. Combining Machine Learning with Credit Risk Scorecards.

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Posting AI Credit Risk Risk 55

FICO

NOVEMBER 30, 2017

If an applicant has a medium risk of synthetic identity fraud at point of origination, this risk assessment may increase over the course of several years as new data indicates the now customer is part of a fraud ring. Lastly, step 3 requires thinking big across the risk and the fraud continuum.

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Risk Fraud Detection Assessments Origination 82

FICO

OCTOBER 17, 2022

How data sharing can improve credit risk decisioning. The launch of the Open Finance Framework by Bangko Sentral ng Pilipinas (BSP) in 2021 was a big step forward in driving financial inclusion for millions of Filipinos across the market who still do not have access to credit. FICO Admin. Wed, 10/03/2018 - 23:42.

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Credit Risk Payment APIs and Integration Consulting Non-Bank 52

FICO

APRIL 12, 2023

And while some of our clients’ business lines benefit from the very latest innovations, others such as mortgage continue to find that older versions of the FICO® Score – even some that were first developed decades ago – meet their needs for credit risk assessment. That’s because FICO® Scores are built to last. Ethan has a B.S.

Credit Risk 52

Credit Risk Risk Assessment Assessments B2C 52

PYMNTS

MAY 4, 2018

The blog posted excerpts from an email reportedly sent by Amazon Business to U.S. In its email, Amazon Business assured that companies will receive payment no longer than seven days past-due, while the eCommerce conglomerate also assured sellers that it will handle credit risk assessment, billing and collection.

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Risk Assessment Payments Available Balance B2B 49

FICO

JANUARY 6, 2021

Posts dealing with debt collection were among the most popular on the FICO Blog last year, for obvious reasons. We did not assess how they might behave once the crisis that triggered their financial stress was starting to pass. Collections Analytics: Are We Missing The Credit Risk Revolution?

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Posting Credit Risk Risk Returns 98

FICO

JANUARY 11, 2017

This confusion and inconsistency may be causing additional collection records on credit bureau reports. As a data scientist from FICO’s Scores organization, I feel it’s important to remind our blog readers that collection information on a credit bureau report has consistently been found to be a strong indicator of increased credit risk.

Consumer 67

Consumer CFPB Research Non-Bank 67

FICO

SEPTEMBER 28, 2018

We will dive into this further in future blogs so keep an eye out.). On the ‘opportunity’ side, I cited: The speed to powerful insights that ML offers, making it ideal for R&D efforts aimed at assessing new analytic challenges, and/or the potential of new data sources to add incremental lift.

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Underwriting Credit Risk AI Risk 53

PYMNTS

JUNE 16, 2016

Its biggest plan, reports said, is to use QuadMetrics’ capabilities in predictive analytics and risk assessment strategy to create an “enterprise security score” for business customers. QuadMetrics says it had achieved 90 percent accuracy in predicting the chances that a company will suffer a cyber attack. .

Security 41

Security Risk Assessment Cybersecurity Assessments 41

FICO

SEPTEMBER 27, 2021

In our previous blog post I examined the shifting regulatory landscape, recent changes in bank overdraft program changes, and what’s next with regulations on overdraft. Banks can choose to assess a fee immediately (the current state) or within a defined period of time (i.e. Consider the following setting. post grace period).

Credit Risk 52

Credit Risk BNPL Credit Cards Assessments 52

FICO

OCTOBER 10, 2022

FICO Fact: Can having no credit score be better for consumers than a low credit score? To avoid situations like this, it is critically important that credit scoring models are proven over time and based on sufficient data to reliably assess a consumer’s credit risk in a way that doesn’t generate a low score.

Consumer 52

Consumer Underwriting Credit Risk Risk Assessment 52

FICO

SEPTEMBER 15, 2022

Saudi Credit Bureau Delivers Access To Loans For Millions with Score. We have been on a journey in Saudi since 2011, to grow lending and increase financial inclusion through the adoption of advanced risk assessment tools,” said Swaied Alzahrani, CEO of SIMAH. How FICO Can Help Improve Your Ability To Risk Assess Customers .

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Financial Inclusion Risk Assessment Assessments Risk 52

FICO

MAY 10, 2017

There has been much discussion and several studies over the years regarding the potential value of leveraging rental data in assessing consumer credit risk. Which raises the question: Should rental data be widely reported to the three primary consumer credit agencies (CRAs)?

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Regulatory Compliance Volume Compliance Underwriting 72

FICO

JUNE 5, 2023

But as more providers take steps towards extending mobile phone leasing to underserved markets, new demographics and segments with thin credit files, while offering the lasts handsets and access to high-speed services, they face a multitude of challenges. He has a Master’s degree in Economics, with an emphasis in econometrics and game theory.

Finance 52

Finance Credit Risk Risk Origination 52

FICO

MARCH 21, 2023

14% said the financial outlook for their company was very strong, and another 50% assessed the outlook as strong. Investors and other secondary market participants want a credit score that is predictive of credit risk and proven over time. Greater volatility in the securitization market is anticipated this year.

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Participant Credit Risk Risk BNPL 52

FICO

MAY 2, 2023

Other expenditure blind spots, such as Buy Now Pay Later, can be removed through the use of digital income and expenditure assessments or Open Banking data. The value of emerging, non-traditional data sources should not be overlooked.

Compliance 52

Compliance Consumer Credit Risk Facilitators 52

FICO

JANUARY 15, 2021

The FICO Blog posts last year reflected that – we wrote about everything from the impact on collections, proactive lender communications with consumers, issues with fraud, and of course, how FICO® Scores were impacted. We hope that what readers learned helped instill confidence in keeping credit flowing during uncertain times.

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Posting Agreements Credit Cards Consumer 59

FICO

JULY 18, 2022

FICO Fact: Can unconstrained AI/ML expand access to credit? Machine Learning is simply another analytic technique; one that can help produce highly predictive credit scores which must also be explainable, with two important caveats: . The use of Machine Learning must be balanced with deep domain expertise in credit risk modeling.

AI 52

AI Financial Inclusion Fraud Detection CFPB 52

FICO

JANUARY 8, 2019

FICO Score hitting a new high in 2018 or the use of machine learning to challenge the score - dominated reader interest on the Risk & Compliance blog in 2018. credit quality. Topics around the FICO® Score - whether it's about the average U.S. Here are the five posts with the most views. Average U.S. FICO Score Hits New High.

Compliance 40

Compliance Posting Risk Risk Assessment 40

PYMNTS

AUGUST 14, 2018

Amazon has also promised that it will handle credit risk assessment, billing and collection for its sellers. For all Pay by Invoice transactions, payment to you is guaranteed, even if the Amazon Business customer is late or defaults on their payment to Amazon,” the email stated, according to the blog.

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Risk Assessment Available Balance Wire Wires 40

FICO

JUNE 1, 2023

Reach out to your Solution Success Manager or Client Partner at FICO for a discussion and current state assessment if you need help completing this evaluation. If you have questions or are interested in discussing these insights in more detail, please contact me, Leanne Marshall, through comments on this blog or at leannemarshall@fico.com.

Credit Cards 52

Credit Cards Federal Reserve Tax Refunds Returns 52

FICO

FEBRUARY 7, 2023

Home Blog FICO Top 5 Scores Posts of 2022: Steady FICO Score, BNPL and Alternative Data 2022 marked the first year in over a decade the average FICO Score did not increase, while the industry’s attention remained on topics such as alternative data and BNPL. million previously “unscorable” consumer files.

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BNPL Posting Underwriting Credit Risk 52

FICO

JANUARY 9, 2023

Plenty still have siloed data across marketing, credit risk, customer management, fraud, compliance, and collections operations. Importantly, when assessing whether a product represents fair value, market rates and prices for comparable products can be considered. FCA’s Consumer Duty Mandates Sharper Use of Technology.

Consumer 52

Consumer Technology Credit Risk Compliance 52

FICO

NOVEMBER 12, 2018

In assessing the predictive value of new scores or new data, significant weight is given to model performance measures. I have seen studies claiming a credit risk score can offer as much as 20% improvement in credit risk assessment over a predecessor model, as measured by relative improvement in Gini.

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Assessments Credit Risk OCC Risk Assessment 45

FICO

JANUARY 10, 2017

The “innovation” VantageScore claims can score more people is simply the weakening of credit score criteria. The minimum criteria needed to produce the FICO Score aren’t arbitrary — they are the result of decades of research into risk assessment. More detail and can be found in Figure 1.

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Research Consumer Risk Assessment Risk 81

FICO

APRIL 24, 2023

Trust combines this fast onboarding journey with comprehensive risk assessment by using predictive models, analytics and parameters built into its decision engine. We combine risk management fundamentals with data science and customer segmentation to help us arrive at optimum risk outcomes,” said Lohia. “We

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Near Real-Time Risk Management Credit Cards Risk 52

FICO

FEBRUARY 21, 2023

Reach out to your Solution Success Manager or Client Partner for a discussion and currect state assessment if you need any help completing this evaluation. If you have questions or are interested in discussing these insights in more detail please contact me, Leanne Marshall, through comments on this blog or at leannemarshall@fico.com.

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Federal Reserve Credit Cards Advisors Issuers 52

FICO

JUNE 22, 2022

It’s clear there are opportunities to provide convenient, competitive and desirable options for pay-in-four instalments, while still accurately assessing a customer’s ability to pay and analyzing precise exposure for at-risk consumer segments. chevron_left Blog Home. Tue, 07/02/2019 - 02:45. expand_less Back To Top.

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BNPL Online and Mobile Banking AI Credit Risk 52

FICO

AUGUST 3, 2022

FICO ® Resilience Index (FRI) augments the FICO Score with an additional dimension of credit risk insight. Once contact was made, it became complicated to assess a borrower’s options based on underlying conditions that may not be readily disclosed. chevron_left Blog Home. expand_less Back To Top. Wed, 08/03/2022 - 15:35.

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Federal Reserve Risk Correspondent Credit Risk 52

FICO

NOVEMBER 22, 2018

Many lenders in markets outside the US use FICO® Scores to assess the risk of consumers applying for loan, but don’t continue to monitor those consumers’ risk using the FICO Score. This regular monitoring also enables FICO analysts to identify any developing credit risk trends occurring in the Russian market.

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Accounts Origination Risk Credit Risk 45

FICO

JUNE 20, 2022

Key findings from FICO research on consumer credit files with recently opened Buy Now, Pay Later loans. In our last blog post , we discussed key considerations in the impact to the FICO® Score of Buy Now, Pay Later (BNPL) accounts being included in the consumer credit file based on our research on data from a major BNPL provider in the U.S.

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FICO

MARCH 15, 2018

In short, the origination score is built by honing in on the population looking to obtain new credit, and then looking at the performance of the new debt. There can be nuanced differences in the risk patterns and trends for this population relative to those of the holistic customer (i.e., customers assessed only by their FICO ® Score).

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FICO

NOVEMBER 30, 2022

This can be done through a combination of macroeconomic factors and transactional data serving as early warning indicators and delivering input into business continuity planning and credit risk strategies. Further complicating a fair assessment was government sponsored stimulus packages, which veiled factual customer affordability.

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Risk Credit Cards Online and Mobile Banking Regs 52