Is US Consumer Credit Availability About to Expand?

Lately on the blog, I’ve been examining the results of our latest quarterly survey of US bank risk managers. One item of note was regarding the outlook for credit availability. In a positive sign, our survey found that lenders expected the supply of credit to satisfy demand for all types...

Wanted: reliable models to combat “rising systematic and systemic risks”

I recently attended an engaging conference jointly hosted by The Risk Management Institute and National University of Singapore that explored “risk management responses to rising systematic and systemic risks.” Among its distinguished speakers were various local and international banks, professors from NUS and National Taiwan University, the Federal Reserve, IMF...

European Risk Survey Shows a Rocky Road Ahead

FICO’s latest survey of European credit risk managers with Efma included a set of questions on trends in the European credit market. The answers shine a stark light on the situation for the region’s banks, which can expect staff reductions, bank consolidations and shedding of divisions and portfolios to cope...

Bullish Growth Projected for Analytics

FICO's Andrew Flint explores IDC findings on the growth of the global business analytics market in our partner blog, the Decision Management Blog. Here's an excerpt: After an impressive 14% growth in 2011, IDC forecasts continued growth at nearly 10% through 2016. The use of business analytics is becoming more...

Device Takeover.... The Rise of the Machines

For many years, financial institutions have been cognisant of the threat associated with account takeover: essentially the practice of a fraudster assuming the identity of a consumer, or at least compromising sufficient credentials to facilitate access to his or her financial records, and then performing changes to and plundering funds...

Credit Gap Likely to Widen for European Small Businesses

FICO has just completed its survey of European credit risk managers with Efma, and the results show a fairly dismal forecast for the rest of 2012. One of the more disturbing trends reported in our news release is the projected growth in the “credit gap” for small businesses. While 37%...

Where Do You Fit on the Risk/Capital Management Matrix?

The McKinsey Quarterly has just published a new report with the ominous title Day of Reckoning for European Banking. The authors discuss the profound impact that regulations — in particular Basel III — are having on banks’ return on equity. The authors note that “banks should develop a regulatory mitigation...

European Credit Forecast: Delinquencies Will Rise, But at Slower Rate

FICO has just completed its survey of European credit risk managers with Efma, and the results show a fairly dismal forecast for the rest of 2012. As reported in our news release, risk managers see further staffing cuts, consolidation and tight credit. One area that was slightly less negative than...

What Banks Are Saying Now About Enterprise Fraud

In recent months, FICO’s Enterprise Fraud Group has been seeking informed counsel from individuals across the financial services spectrum, looking to understand how enterprise fraud management is evolving in different organisations and in different parts of the world. What we’ve found represents a real change in the concept of enterprise...

More Loans for Car Buyers with Damaged Credit

We just released results from our latest quarterly survey of bank risk managers. In the survey, we included a couple questions about subprime lending. While many respondents (44%) expected overall subprime lending in 2012 to remain flat compared to 2011, the consensus was that if any sector sees an increase...

Customer Profitability in the Fast-Growing Philippine Credit Market

While high growth rates are fantastic, it’s very costly to originate new customers when compared with selling to your existing customer base. In fact, it can be more than five times more expensive to originate new customers. That’s one reason why improving customer profitability is so critical for a bank....

Taking C&R One Step at a Time

As part of our collections and recovery webinar series, we’ve been polling C&R professionals about their top impediments to improving collections performance (something I’ve blogged about before). During our recent Gaining Speed to Market with Best Practice Collections Automation webinar, we asked participants what was stopping them from implementing capabilities...

Is Your Model Due for an Overhaul?

Over the past three weeks, I have been meeting with European banks to discuss model governance, along with IDC Financial Insights research director Michael Versace. The issue we’re exploring isn’t a new one — ever since banks began using predictive models back in the 1960s, analytics teams have been focused...