Big Data Changes the Analytics Paradigm

Big Data is a hot topic today that stems back to the early days of high-performance computing and parallel computing, which I worked on during my time in theoretical physics at Duke and Los Alamos. These days, Big Data tools facilitate the ease in applying these concepts. Interestingly, much of...

Managing Predictive Models (video)

Banks can increase the value they get from their predictive models by changing the way they manage those models. New OCC and Basel regulations make improving model management more important than ever. Hear more on this topic from Mike Gordon, FICO vice president and banking practice manager, in this Tech...

Fighting Enterprise Fraud

Increasingly banks are looking to leverage the full breadth of data related to customers to make better decisions, and fraud is no exception. There is a strong desire to break down silos, so fraud/risk behaviors in one area of the customer’s interaction with the bank can be utilized in other...

New Analytics for Emerging Payments

Payment cards are changing. Whereas a plastic card used to access a single funding account, now we increasingly see cards—and very soon, mobile phones—that can access multiple funding accounts. This trend not only increases personalization options, but also fraud detection capabilities, if you leverage a cardholder’s history of what funding...

Changing payments means changing fraud detection

The traditional credit/debit card has become passé—at least in terms of having a single device with access to only one funding account. Today, a single card can, at the point of sale, access different accounts to fund the payment transaction. Likewise, a mobile device has the capability to make payments...

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...

How can fraud models combat new tricks?

The fight against payment card fraud resembles an arms race. Card issuers are deploying ever more sophisticated anti-fraud measures, and fraudsters are continually evolving strategies to evade those measures. Typically, issuers rely upon neural network fraud models trained on huge historical datasets to recognize recurring fraud patterns and reduce fraud...

How do FICO® 8 scores change the score distribution?

One reason there are more consumers today with scores at the high and low ends of the 300-850® score range for FICO® Scores is that we have improved the FICO scoring models. The newest version — the FICO 8 Score — is a stronger predictor of future credit risk. Because...

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...