Closing the credit gap in Europe

In the recent European Credit Risk Survey conducted by FICO and Efma, credit risk managers across Europe said they expected the “credit gap” between demand and supply to narrow, compared with their outlook earlier this year. More risk managers now see the amount of credit issued rising. Nearly 30 percent...

Mortgages are sore spot in European credit forecast

According to European credit risk managers in the second European Credit Risk Survey conducted by FICO and Efma, the delinquency picture is mixed. Overall, respondents’ outlook for the next six months is mixed, but the results were slightly better than the last survey (February 2011) for most credit products. Where...

In Europe, Service and Savings Come First, While Trust in Banks Shrinks

Customers’ changing relationship with banks is made very clear in the second European Credit Risk Survey conducted by FICO and Efma and released today. In fact, the strongest cross-national agreement in the whole survey came when the credit risk managers surveyed said what matters most to customers today. According to...

Customer Profitability - what are the best practices?

Managing customers better has been a hot topic lately with our Asia Pacific clients. Originating a new account is a costly process, so ensuring we build long-term customer loyalty and satisfaction is sound business practice. Also, there is a ‘halo’ effect for customers that have multiple products with us –...

Mobile Banking Fraud Part #1: Vulnerabilities of Mobile Devices

Mobile devices are changing the payments landscape. More mobile devices are becoming equipped with near-field contactless capabilities and apps that allow for the purchasing of goods and services. While this provides a number of conveniences for consumers, mobiles also come with greatly increased risks related to payments. Case in point,...

Breaking down an origination decision model

While decision modeling and optimization are employed by top financial services firms in some decision areas, they have not been a standard part of the origination process for most lenders. But this is changing—not only because of economic, regulatory and market pressures, but because technology advances (e.g., SOA approaches) now...

Which fraud investments will deliver the biggest payoff?

Criminals are making lots of investments in fraud, so it's critical that financial institutions get the biggest bang for their anti-fraud buck. Here are the areas I suggest investigating for anti-fraud ROI: 1. Make more stringent CNP (card-not-present) authorizations. With the increased usage of cards on the internet and the...

Four essentials for fraud detection

I'm often asked "What are the best ways for banking institutions to detect fraud?" While it's common for institutions to rely on after-the-fact manual reports and threshold rules, these are primarily useful for compliance processes, not for fraud detection and loss mitigation. To have a real impact on fraud losses,...

Dispelling common scoring myths

If your experience is anything like ours, you’ve found that some banking customers harbor strange ideas about credit scores. Here are several myths about FICO® Scores that we hear often. Myth: To get a high score, run up high balances on your credit cards. Contrary to what some believe, using...

What Makes a Score “Fair”?

In writing my last post about legislative and consumer pressures to modify credit scores, often to make them “fair,” I began thinking about what does make a score fair. Legislators and regulators look for fair lending. The U.S. Fair Credit Reporting Act governs much of what FICO does when we...