Better risk prediction in mortgage servicing

Perhaps no other entity within financial services has been more challenged by the economic downturn than mortgage servicing. It’s not just that mortgage default severity is significantly higher than other consumer loan defaults. The changing nature of assessing consumer credit risk and declining property values has put huge pressure on...

Why managing cross-channel fraud is a must

Our recent fraud survey of hundreds of financial institutions uncovered that only 26% have a team assigned to detect cross-channel fraud. The problem stems from how institutions manage fraud—by payment channel rather than at the customer level. This makes them vulnerable, unable to identify fraudsters targeting one channel for compromise...

Redefining the Path to Profitability

As lenders are developing their post-recession investment and growth plans, they are taking the recent pause in growth as an opportunity to examine alternative methods to add value for both themselves and their customers. While this has been evolving over many years outside of the United States, the movement has...

Credit Scores and Counter-Cyclical Risk Management

Basel III regulations call for banks to adopt a counter-cyclical approach to managing risk and capital. To avoid creating credit bubbles or prolonging economic recessions, risk measures should reflect the effect of the next economic cycle. FICO's David Molyneaux explains in this Tech Talk. Credit Scores & Counter-Cyclical Risk Management...

Will Europe see a wider credit gap?

In the new European Credit Risk Outlook report issued by FICO and Efma, risk managers across Europe weigh in on credit supply and demand. With the pressure on for banks and other lenders to fuel economic growth through making credit available, will the supply meet the demand? Respondents in most...

What are the biggest fraud threats for 2011?

The new year often brings new resolutions, new ideas and fresh perspectives. Unfortunately, fraudsters are not immune, and will also come up with new schemes and deceptions. So what can banks expect from fraudsters in the coming year? The increased use of electronic deposits means that Remote Deposit Capture (RDC)...

How will regulations affect Europe's credit supply?

What do European credit risk managers see ahead for credit supply and demand? That’s what FICO and Efma asked in the first European Credit Risk Survey, and the report, released today, shows a mixed response. One thing risk managers across Europe agreed on is that regulations are likely to tighten...