Know Customer Favorites to Fight Fraud

Individual cardholders are creatures of habit. Cardholders have "favorites"—or recurrences—over a wide variety of entities in their transaction streams. These entities might include favorite ATMs close to work or home, favorite gas stations along a daily commute, preferred grocery stores, and preferred online stores for shopping. To improve fraud management,...

Regulations Amplify Demands on Model Management

Since the global recession, regulators worldwide have become increasingly concerned about the soundness of decision making and capital adequacy within financial services. As a result, they are taking an even closer look at how financial institutions manage risk and use scoring models. To address this greater regulatory scrutiny of model...

Best Practices for Modeling Regulations

Financial institutions have had a difficult time adapting to the latest regulatory guidance regarding model validation and management. But making the right improvements can also translate into better analytic performance and risk management. To both comply and compete, it's critical to build an organizational policy for comprehensive model and credit...

Secrets of Big Data Success – Live from FICO World 2013

At this week’s FICO World conference in Miami, Big Data has taken center stage. Our keynote panellist yesterday, Kenneth Cukier, presented a captivating talk on how Big Data will transform our lives. Based on his new book, Cukier, the data editor of The Economist, emphasized that the secret of succeeding...

Risk Tops European Banks’ Analytic Priorities — But Should It?

Analytic investments are priorities for banks across Europe, who are looking not better risk management, better identification of customer needs and better capital management. This is evident in the results of FICO and Efma’s seventh European Credit Risk Outlook, published on Tuesday. More than 40% of respondents say they will...

Customer-Centric Innovations in Fraud Analytics

There's tremendous emphasis on increasing customer centricity in banking these days, and indeed a big focus of my fraud analytics team is developing “customer-focused” innovations. These analytic models go beyond focusing solely on the characteristics of typical fraud events; they’re also built to improve learning of what typical customer behavior...

Dynamic Detection for the Global Fraud Fight

Those of you who follow this blog know that I regularly discuss analytic innovations that boost fraud detection. One such innovation is adaptive analytics, so-called because these models continually "adapt" traditional neural network fraud models in response to real-time fraud tactics that were not present at the time of model...

Join Us For FICO World 2013

How are companies using Big Data analytics to understand and collaborate with today’s connected consumer? Join us at FICO World 2013 to discover answers from experts and network with your banking peers. Registration is now open for the conference, which will be held April 30-May 3 in Miami. FICO World...

How Big Does Big Data Need to Be?

Big Data was on the agenda last week at the third annual Asia Pacific Chief Risk Officer Forum, held in Bangkok and hosted by FICO with IDC Financial Insights. But it might not be the Big Data you’re thinking about. For example, Australia’s contingent were discussing “comprehensive reporting,” which is...

Big Data in Fraud: A Need to Stream

Today’s buzz around Big Data is bringing renewed attention to the need for streaming analytics—a focus that, if you ask me, is long overdue. In the payment card space, we at FICO are celebrating the 20th anniversary of using streaming analytics for fraud detection. Our FICO® Falcon® Fraud Manager models...