Inadequate data infrastructure -- a big roadblock for Asia Pacific banks

It is an understatement to say that the financial crisis in 2008 has forced banks to think and operate differently. Compared with the Western world, many countries in Asia Pacific came out of the crisis much more rapidly. Asian banks have shown they’re able to adapt more nimbly to the...

Navigating the new normal in Asia Pacific

Navigating today's banking "new normal" continues to be top of mind for businesses and policymakers—so much so, that I was recently asked to byline an article on the subject for Singapore’s Business Times. In the article, I identify three new realities of the new normal that we must wrap our...

No Pre-Set Spending Limit Cards: Friend or Foe to the FICO® Score?

There has been a lot of buzz around a new type of hybrid—not a car, but a card! Some lenders are increasing the issuance of revolving cards with no pre-set spending limit (NPSL). Also known as flexible spending accounts (FSA–not to be confused with a healthcare spending card), these hybrid...

Delinquencies down, but not out, in Asia Pacific

What are some of the biggest issues collection heads face with their technology solutions in the Asia-Pacific region? What key features are they looking for in a collection and recovery system? We recently completed a series of meetings with banks and financial institutions in half a dozen countries in Asia...

“Get it right from the start” at originations

Today the accuracy of origination decisions is more important than ever. As banks require more capital in the wake of the financial crisis and in preparation for Basel III, new account risk must be assessed with greater precision. In markets where good customers continue to deleverage en masse, lenders must...

CNBC Squawk Box: FICO CEO on consumer debt, new risk-based pricing rules

On CNBC Squawk Box, FICO CEO Mark Greene discusses consumer debt and delinquency, new risk-based pricing rules for lenders, and FICO's launch of ScoreInfo.org, an educational website to help US consumers understand risk-based pricing disclosures. Can I Get Your (Credit) Digits? http://www.cnbc.com/id/15840232/?video=1738503669&play=1

New survey reveals top fraud threats and vulnerabilities

What are the top fraud threats to financial institutions? How are they fighting back? New results from our Faces of Fraud Survey provides some answers—and a few surprises. The survey, conducted by ISMG and sponsored by FICO, polled hundreds of financial institutions, primarily banks but also credit unions and payment...

Targeting strategic defaulters: to lend or not to lend?

In a piece on the TIME blog, Stephen Gandel comments on the New York Times article of 10 December, 2010 where credit card lender testing of sub-prime consumers was discussed. Mr. Gandel raises many good points about the quandary that banks find themselves in. The issue of lending to strategic...

How will new banking entrants change the game?

Even in today’s banking environment — with new regulations and economic change putting the squeeze on profits — there are new players who see opportunities. In some cases they may be players who already have a captive consumer base, such as retailers. In others, they will be new competitors who...

Six does not equal one - improving access to credit in Singapore

Singapore, which is in the running to be the world's fastest-growing economy this year, is the nation with the most business-friendly regulations (and, where we at FICO headquarter our Asia Pacific operations). For the fifth year in a row, the World Bank and International Finance Corporation ranked Singapore as the...

What can banks learn from retailers?

Banking profits are up. Back in the summer, banks like HSBC and BNP declared record profits. Lloyds bank returned to profit promising the UK government a return on its investment, and the U.S. banking industry earned $14.5 billion during the third quarter of last year. The FDIC went on to...