Gaining Speed to Market with Best Practice Collections

These days, collection managers face many tough questions. How can we do more with the same resources? How can we make sure to work the right delinquent customers? Can we improve the timing of collection actions? How can we improve kept promise rates and offer better customer service? And, how...

Innovations in collections analytics

At a recent collections and recovery webinar that I co-presented, I polled attendees to find out what area they felt could be improved to drive the biggest C&R gains. An overwhelming 50% said it was technology. Process also emerged as a key theme, coming in second at 18.2%. These results...

Using Mobile Technology to Improve Customer Interactions

Even lenders with the best analytics and decision management platforms often struggle to communicate advice and offers to customers. Wouldn't it be great if they could do so via a low-cost channel that their customers actually enjoy using, and thus is likely to yield more and higher-quality responses? Together with...

Digital Strategies Revolutionizing Collections

Blog author Daniel Melo discusses how digital strategies are revolutionizing collections in a new article for InsideARM. Here's an excerpt: It’s fair to say that consumers don’t like dealing with collections agents. That’s not to say that most of them don’t or won’t pay their bills, but rather that they...

Collections provides wins for mobile banking

Digital strategies are revolutionizing collections performance today. Using mobile banking as a channel for collections makes customers feel like the communication is personal, and gives them choices over their payment terms. The results don’t lie: As noted by Telrock CEO Russell Robinson in a presentation we gave at FICO World...

The Hidden Benefits of Social Banking

Retail Banker International has published "The Hidden Benefits of Social Banking," a blog post by FICO's Mike Gordon, vice president and managing director of EMEA. In the post, Mike discusses the use of social and digital channels for collections and recovery. Here's an excerpt: Placing the customer in control of...

Get a preview of PNC Bank’s FICO World keynote

Want a sneak peek into next week's FICO World? Then we invite you to watch the recorded FICO World preview webinars. The FICO World 2011 conference takes place November 1-4 in New York City. Revitalizing Growth in the Reset Economy Gordon Cameron, SVP, PNC and Mark Greene, CEO, FICO In...

Get a FICO World sneak peek at a preview webinar

Are you considering registering for FICO World 2011 but want a taste of what to expect? In the coming weeks, blog authors Daniel Melo and David Molyneaux will present two free FICO World preview webinars, providing a sneak peek into their upcoming FICO World sessions. The FICO World 2011 conference...

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...

Cautious optimism regarding consumer credit

As we do every quarter, we conducted a survey of U.S. bank risk professionals in Q2. Our survey found that bankers are cautiously optimistic about the financial health of consumers. We found that 38% of respondents expected credit card delinquencies to remain flat, while 31% expected them to fall, and...

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...

Subjective Tinkering of Credit Scores is Bad Policy

Recently I made a case against a new IRS policy to withdraw tax liens from the credit bureau files of delinquent taxpayers who eventually pay their overdue bills. This subjective tinkering with empirically developed credit scoring only ends up hurting consumers, particularly those who legislators are trying to protect. It...

How collections tactics affect the payment hierarchy

As I noted in a recent post, there is growing evidence of a shift in the payment hierarchy among European borrowers. This shift moves housing payments down in the hierarchy, and makes credit cards a top priority. Why is this change happening? Non-payment of a credit card has a more...

Leveraging the deposit relationship

This is a period of cautious growth for banks, and there’s no safer way to extend more credit than to start with your good customers. That’s why we see banks focusing more and more on the customer experience and taking decisions at the customer level. That means leveraging the deposit...

Research looks at how mortgage delinquencies affect scores

How much impact does a short sale have on FICO® Scores? How about a foreclosure? Since I frequently hear these questions from clients and others, I thought I’d share new FICO research that sheds light on this very subject. The FICO study simulated various types of mortgage delinquencies on three...

Collect with Kindness

There’s an old saying, 'Kill them with kindness.' A modern version might read, 'Collect with kindness.' As Janice Horan and I discussed at recent FICO Forum events in Europe, those in debt experience profound humiliation and react badly to brute-force collection techniques. The cumulative effect of all collection efforts reinforces...

Withdrawing tax liens unwise

You’ve probably heard that the IRS will now make it easier for delinquent taxpayers to have tax lien records completely removed from credit bureau files. The taxpayers need to pay their overdue tax bill in full or simply agree to a direct-deposit arrangement for paying the overdue tax. So instead...

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...

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

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...

Has Chip and Pin Cracked the Fraud Nut?

Card fraud trends in the UK are beginning to show the sort of results that validate those who have held up “chip and PIN” as a modern-day success story. At the FICO Forum: The New Normal in London on 16th November, we had a lively discussion about the lowest UK...

Paying off a trade line in collection

Credit scores hold true to the axiom that “Actions speak louder than words.” How each of us acts toward credit and creditors has proven to be highly predictive of our future repayment risk. FICO has found that some consumer actions are more predictive than others. One that we are often...

Taking On Strategic Defaults

Throughout the United States, lenders are attempting to identify and evaluate the creditworthiness of “strategic defaults”—those customers that have chosen to stop making mortgage payments because the mortgage was greater than the value of the residence. Many lenders are now asking: Are these customers prudent credit risks—or incredibly risky? Consumers...

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...