Extending Credit to New Markets: Q&A with Itaú Unibanco

Itaú Unibanco is Brazil’s largest private sector bank and the ninth largest globally. But when it launched its credit card as an initial entry into the highly competitive Mexican market, it had to adopt startup-style strategies. Key to the effort was an origination process using FICO® Capstone® Decision Accelerator to...

Finding the levers to change customer behavior

Forward-looking economic calibrations of risk, such as those I described in my last post, are being folded into a wide range of customer decision strategies. Samsung Card, one of Korea's largest credit card companies, is at the forefront of this trend. We recently worked with Samsung Card to improve portfolio...

Economically calibrating risk predictions

While there are many commentators trying the define what the “new normal” will look like in a post-crisis economy, there’s still a lot of new learning to be done and not much in the way of economic consistency. So it seems a good time to talk about companies that have...

Closing the Gap on Fraud Model Degradation

Fraudsters are continually adjusting their strategies to circumvent fraud detection systems. In my last few posts, I've been discussing how adaptive analytics are built to counter this problem. Because of this, the latest version of FICO™ Falcon® Fraud Manager leverages adaptive analytics. The adaptive model adjusts the base neural network...

Strengthening conventional fraud detection

Financial institutions are always looking for ways to combat newer fraud schemes—schemes that arise between fraud model developments and are not well-represented in the historical data. As I discussed in a recent post, one way to boost performance is to add analytics that are adaptive or self-learning. Deploying adaptive models...

Mark Greene: Join us for FICO World 2011 (video)

How are the top competitors in banking worldwide changing the game to grow in a difficult economy? FICO CEO Mark Greene invites you to discover the answers at FICO World 2011, November 1-4 in New York. Mark Greene: Discover Game Changers at FICO World 2011 Attendees will join hundreds of...

Call for presentations: Submit your FICO World session idea

As FICO™ World 2011 approaches, we invite FICO clients and other industry thought leaders to submit proposals for conference sessions related to predictive analytics and key issues in retail banking and insurance. The FICO World 2011 conference will be held in New York from November 1-4. It’s easy to submit...

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...

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...

Refining customer segmentation

Customer segmentation based on analytics for customer risk, attrition, response likelihood and other aspects are de rigueur in financial services. But there is still an opportunity to improve results by sharpening the picture. Many lenders are still not using the most advanced predictive models—for example, customer behavior models based on...

Welcome to the FICO Banking Analytics blog — why are we here?

- Posted by Tom Quinn, FICO® Score Product Manager Today's bankers are information junkies. We should know - as the creators of the FICO® score and other predictive analytics solutions, we are constantly providing our clients with new research and insights into credit trends. We created this blog to share...