FICO

MAY 6, 2019

A recent Bloomberg article asserted that “consumer credit scores have been artificially inflated over the past decade,” as credit scores have steadily increased over the past decade of economic expansion. FICO Scores Are Not Fixed Estimates of Credit Risk. So are FICO ® Scores “artificially inflated”?

Underwriting 75

Underwriting OCC Credit Risk Risk 75

FICO

OCTOBER 10, 2022

FICO Fact: Can having no credit score be better for consumers than a low credit score? A low FICO score for a consumer can have the perverse effect of preventing them from having access to a second chance through manual underwriting. Axios recently spoke on the demand to issue out more credit scores.

Consumer 52

Consumer Underwriting Credit Risk Assessments 52

PYMNTS

OCTOBER 20, 2016

Businesses certainly purchase differently than consumers do. The credit management platform automates aspects of customer credit management, from credit approval, to online ordering, to invoicing and collections. “We We call it ‘CMaaS’ for Credit Management-as-a-Service.”. And on the horizon now?

B2B 73

B2B Underwriting Credit Risk Payments 73

FICO

AUGUST 28, 2020

The FICO® Score has been a stable and highly effective tool for rank ordering credit risk through prior fluctuations in economic conditions, and we expect the FICO® Score to continue to provide strong risk rank ordering through the current COVID-19 pandemic.

Underwriting 94

Underwriting Risk Economy Credit Risk 94

The Fintech Times

SEPTEMBER 11, 2024

MoneyLion has teamed up with Nova Credit to integrate cash flow underwriting into its decisioning engine, enabling credit issuers on its platform to access more comprehensive data for evaluating consumers’ financial health.

Underwriting 59

Underwriting Risk Management Credit Risk Issuers 59

Fintech Finance

SEPTEMBER 18, 2024

But building financial services capabilities in-house is costly, time-consuming, and creates significant regulatory and financial risk. For Brex Embedded partners, their customers can make fast, secure global payments in virtually any currency, all while automating their existing financial workflows and payment reconciliation.

Global Payments 105

Global Payments Embedded Payments Payment APIs and Integration Reconciliation 105

The Fintech Times

APRIL 15, 2024

These algorithms analyse extensive data sets to accurately evaluate creditworthiness, making financial services more accessible and responsive to consumer needs. “For consumers, payment and lending experiences become frictionless due to AI, with the technology able to process loan applications and payments more efficiently.

Embedded Finance 134

Embedded Finance AI Finance Assessments 134

PYMNTS

APRIL 16, 2019

But it occurred to them that their solution was useful outside of HR — and that many of the things that made someone a good hire of over time could also make them a good credit risk over time, if the artificial intelligence (AI) model they were using to screen with were modified to that task. Expanding Access to Credit With AI.

Risk 89

Risk AI Underwriting Assessments 89

FICO

FEBRUARY 25, 2019

After a 2018 that had its highs and lows, what might 2019 have in store from a credit risk management standpoint? Here are three key developments in credit scoring that we will be keeping an eye on in the new year: Consumer-Contributed Data Takes Center Stage. Risk in Bankcard Originations on the Rise.

Credit Risk 63

Credit Risk Underwriting Origination Fed 63

FICO

MAY 7, 2018

Some of the top thought leaders in banking, finance, artificial intelligence, machine learning, and credit risk came together in San Francisco to discuss the key trends and innovations in our industry. In addition, we explored the power of tapping into alternative data in credit scoring in markets across the globe.

Financial Inclusion 77

Financial Inclusion Innovation Credit Risk Underserved 77

PYMNTS

MAY 29, 2018

The system got a major boost in the 1970s with the passage of The Fair Credit Reporting Act , which officially regulated what information would be collected as well as created rules that made credit reports something consumers had a legal right to both see and dispute. But is FICO keeping pace with modern financial services?

Financial Inclusion 62

Financial Inclusion Underwriting Credit Cards Disputes 62

Fintech News

DECEMBER 20, 2023

There is also evidence in the US that BNPL users tend to have a riskier credit profile than those of traditional consumer credit products. Once the platform approves the credit line, it pays the merchant the full amount of the goods purchased, thus taking on the customer’s credit risk.

BNPL 106

BNPL Consumer Financial Protection Bureau (CFPB) Settlement Non-Bank 106

Segpay

DECEMBER 22, 2023

This seems fitting since the underwriting and compliance processes can be a bit of a challenge. This holiday season, I wanted to give the gift of knowledge by sharing the top common compliance questions and how the right answers could keep you off the underwriter naughty list. And in a lot of situations, that answer is “no.” “Can

Money Laundering 103

Money Laundering Acquirers Processors Underwriting 103

PYMNTS

JULY 16, 2019

The debt funding was led by BHI, ConnectOne Bank, IDB Bank, Viola Credit and a large insurance company. Lendbuzz’s financing model, which is powered by machine learning and proprietary algorithms, allows it to better assess the creditworthiness of consumers with limited U.S.

Finance 49

Finance FinTech Underwriting Credit Risk 49

Finovate

APRIL 10, 2024

The deal will help Empower expand into the credit card market. Empower also announced it closed the acquisition of Philippines-based consumer credit and lending fintech Cashalo. Empower , a fintech helping to extend credit to underserved consumers, announced plans to acquire underserved credit card provider Petal.

Credit Cards 52

Credit Cards Underserved Underwriting Acquirers 52

FICO

SEPTEMBER 28, 2018

I had the pleasure of speaking on a panel at ABS East yesterday, entitled “Traditional vs Non-Traditional Underwriting, Does Machine Learning Teach Us Anything New?”. The panel primarily focused on the opportunities and challenges associated with the use of Machine Learning (ML) in credit underwriting.

Underwriting 53

Underwriting Credit Risk AI Risk 53

PYMNTS

JANUARY 11, 2018

Although they both had similar ideas about the use of technology to improve credit decisioning at the consumer’s point of need, they pitched to different consumers and used very different channels to acquire customers. LendingPoint’s focus: near-prime customers who apply for credit online. Breaking New Ground. .

Consumer 43

Consumer Underwriting Risk Management Underserved 43

FICO

MAY 25, 2021

If we think of a lending portfolio as a night club, its underwriting policy acts as the doorperson, checking IDs and making sure anyone trying to enter meets documented criteria. FICO® Scores, often an important contributor to underwriting strategies, are designed to provide valuable risk rank-ordering through all economic cycles.

Risk 52

Risk Addressing Underwriting Economy 52

PYMNTS

JUNE 17, 2020

Having announced a partnership with Dun & Bradstreet , Velotrade is expanding the pool of data from which it draws to underwrite financing. The first and most obvious risk is credit risk, or the risk that a business will fail to repay financing.

Finance 68

Finance Mitigation B2B Underwriting 68

FICO

JUNE 23, 2023

A more predictive credit score means more predictable cash flows which are, in turn, more attractive to investors for all types of securitized assets (e.g., mortgages, auto loans, credit cards, etc.) offering continuity and stability for lenders, investors, and consumers.

Credit Risk 52

Credit Risk 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)? But how many?

Regulatory Compliance 72

Regulatory Compliance Volume Compliance Consumer 72

FICO

MAY 8, 2019

a leading payments technology company, has achieved significant results by creating a centralized underwriting management solution on the FICO® Decision Management Platform (DMP). Additionally, we have transitioned certain processes downstream with no negative outcome on KYC validation and no increased risk to the organization.”.

Underwriting 51

Underwriting Best Practices Risk Rules 51

PYMNTS

SEPTEMBER 20, 2018

As recent events have shown (China began a nationwide crackdown on P2P lending last year, following a series of multi-billion dollar scams in the space), consumer finance is challenging in the massive country. Technology serves as an advantage for X Financial, even beyond its underwriting engine.

P2P 66

P2P Credit Cards Online and Mobile Banking Credit Limit 66

FICO

FEBRUARY 28, 2017

In my last blog post , I shared a new FICO research study on credit trends in auto lending. So how are consumers affording these larger loans? This shift may signal an increase in credit risk for the industry because six-year loans have historically had higher delinquency rates.

Underwriting 56

Underwriting Credit Risk Risk Accounts 56

FICO

DECEMBER 8, 2022

If we think of a lending portfolio as an exclusive night club, its underwriting policy acts as the doorperson, checking IDs and making sure anyone trying to enter meets minimum acceptance criteria. Traditional underwriting risk management strategy approach in stressed versus unstressed economy. Senior Director, Scores.

Addressing 52

Addressing Risk Underwriting Risk Management 52

FICO

JUNE 30, 2023

What the FICO Score is not designed to do is provide a specific, fixed estimate of credit risk; we know from tracking the scores over three-plus decades that the relationship between the FICO Score and consumers’ likelihood of loan repayment can and does shift over time and across economic and financial cycles. Ethan has a B.S.

Underwriting 52

Underwriting Credit Risk Mitigation Risk 52

FICO

JANUARY 10, 2017

Participants and Influencers throughout the mortgage ecosystem have been told by the three main US credit bureaus through their jointly owned and controlled credit scoring firm, VantageScore, that the VantageScore can enable millions more consumers to gain access to a mortgage. million of whom will qualify for mortgage credit.

Research 81

Research Consumer Risk Assessment Risk 81

PYMNTS

FEBRUARY 26, 2019

Traditional credit-scoring models are just drawing criticism, as well as a generation of competitors like Aire , which offer alternative credit-scoring models advertised as better-able to offer a “three-dimensional” view of customers in real time. The problem was he had no credit history.

AI 61

AI Credit Risk Assessments Card Issuer 61

FICO

AUGUST 20, 2019

China Construction Bank (CCB) hopes to reach more millennial consumers and is using alternative scoring services to improve decision making and improve financial inclusion efforts to reach this demographic. Partnering with the FICO team, we have significantly improved our origination efficiency while maintaining our risk profiles.

Financial Inclusion 40

Financial Inclusion Credit Cards Credit Risk Underwriting 40

PYMNTS

MARCH 14, 2017

Once one gets in, their SAT score is officially useless to them; a mortgage underwriter won’t ask about it, credit card companies don’t care about it, and while we can’t be sure that no employer on Earth would make a hiring decision on the basis of it, we are fairly sure that the list of those that do is vanishingly short.

CFPB 40

CFPB Underwriting Social Security Consumer 40

PYMNTS

SEPTEMBER 25, 2019

The Catch-22 is a familiar part of the early life of many consumers looking to get credit for the first time. They can’t secure underwriting because their financial file reveals no credit history, and they can’t establish any credit history because no one wants to underwrite them.

Underwriting 49

Underwriting Credit Cards Underserved Risk 49

FICO

FEBRUARY 7, 2023

Saxon Shirley Fri, 05/20/2022 - 06:06 by FICO expand_less Back To Top Tue, 02/07/2023 - 19:10 As the independent standard in credit scoring, FICO® Scores are the leading credit scores used extensively across the lending ecosystem. million previously “unscorable” consumer files. Read the full post 2.

BNPL 52

BNPL Posting Underwriting Consumer 52

PYMNTS

APRIL 10, 2018

Adjaoute said doing this goes far beyond what FIs can offer through manual, paper-based underwriting processes, which can keep applicants waiting for a month or longer. Evaluating credit risk isn’t just about keeping fraudsters from getting loans under illegitimate identities. When Less Isn’t More.

AI 54

AI Credit Risk Risk Underwriting 54

PYMNTS

MARCH 13, 2017

Good news is ahead for those suffering from low FICO scores — according to reports this morning, civil judgements and tax liens will by and large be coming off of consumer credit reports. The move is one of the latest to keep negative information weighting down credit scores to a minimum. consumers, 6 percent of the total U.S.

CFPB 44

CFPB Settlement FTC Social Security 44

PYMNTS

JUNE 16, 2016

FICO is best known for its consumer credit rating services, but the company revealed Tuesday (June 14) that it will launch a new product that rates the security of corporations. FICO said it hopes to provide a tool to underwrite companies’ cybersecurity levels. Known as Fair Isaac Corp.,

Security 41

Security Risk Assessment Cybersecurity Assessments 41

PYMNTS

DECEMBER 10, 2016

The consumer credit market has huge potential — trillions and trillions of dollars — and I wanted to ride that winner. The marketplace lending model is designed to offload the most pernicious risk in the lending business — credit risk — to the investors who buy the loans from them.

Non-Bank 73

Non-Bank Compliance Push-to-Card Origination 73

PYMNTS

FEBRUARY 7, 2020

So what were the loud points in an uncharacteristically quiet week in the race for the consumer’s whole paycheck? The partnership would apply Goldman’s lending technology to SMB loans on Amazon’s underwriting platform, according to unnamed sources. Big News of the Week: The Potential Goldman Partnership .

Push-to-Card 52

Push-to-Card Underwriting Caps Small Business 52