New FICO Solution Helps Banks Grow Bankcard Portfolios in a Dynamic Environment

FICO Bankcard Growth Solution employs Analytic Learning Hub to enable continuous adaptation to economic shifts and changing consumer behaviors

MINNEAPOLIS--()--FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today announced the availability of a unique new analytic solution designed to spur profitable growth in lenders’ bankcard portfolios. The FICO™ Bankcard Growth Solution is an integrated solution to help lenders improve decisions based on deeper analytic insight and accelerated learning across all stages of bankcard acquisitions and originations.

Specifically, the FICO Bankcard Growth Solution links a lender’s prospecting and offer generation decisions, providing information on responses and new account performance metrics that help the issuer adjust strategies with unprecedented speed. The unique underlying technology is an Analytic Learning Hub, which enables banks to accelerate the feedback cycle and use that information to offer the right card products to the right consumers at the right times.

Using the FICO™ Bankcard Growth Solution, a bank’s acquisition and originations teams can determine earlier in the process if a campaign is attracting the intended customers. With this knowledge, banks can then adjust strategies, change offers and incentives, test through simulation, and update messaging in rapid fashion while a campaign is still underway. In addition, they can use built-in FICO analytics to pinpoint each consumer’s risk, weigh the impact of potential economic shifts into that risk measure, and assess a consumer’s capacity to safely handle additional debt.

“Lenders around the world are aggressively competing to capture the most profitable consumer segments, yet the majority of lenders utilize new customer acquisition solutions that are deficient and often obsolete,” said Dennis Moroney, Research Director, Retail Banking and Cards for TowerGroup. “The banks that will succeed will rely on technologies that monitor ongoing new customer behavior, beginning with the first purchase, to drive decisions on future applicants.”

One top-10 U.S. lender is using the FICO solution as a key component of its strategy to grow market share and increase products per customer. As a first step, the lender launched the solution to empower its branch personnel with pre-approved card offers for qualified customers as they interact with the bank. Subsequent usage included full outbound marketing campaigns that leverage analytics to match the best product promotion to each customer, in order to safely and profitably grow the card portfolio.

“The ‘new normal’ in the banking industry is characterized by economic uncertainty and changing consumer behaviors, so banks have to figure out how to grow profitably despite the lack of stability,” said Andrew Jennings, senior vice president and chief analytics officer, FICO. “The most forward-looking banks are adopting analytic solutions that increase their capacity to learn, adapt and innovate. With its Analytic Learning Hub, the FICO Bankcard Growth Solution helps lenders make the decision that’s appropriate for each customer, learn from that decision’s results, and improve future decisions, in much faster cycles.”

For additional information, see FICO’s latest Insights white paper, “Analytic Learning Loops Propel Bankcard Growth,” available for free on FICO.com.

About FICO

FICO (NYSE:FICO) delivers superior predictive analytics solutions that drive smarter decisions. The company’s groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO’s innovative solutions include the FICO® Score — the standard measure of consumer credit risk in the United States — along with industry-leading solutions for managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world’s top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. FICO also helps millions of individuals manage their personal credit health through www.myFICO.com. Learn more at www.fico.com. FICO: Make every decision count.

For FICO news and media resources, visit www.fico.com/news.

Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company’s Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2010 and its last quarterly report on Form 10-Q for the period ended March 31, 2011. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.

FICO and “Make every decision count” are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries.

Contacts

FICO
Media:
Stephen Astle, 415-446-6204
stephenastle@fico.com
or
Investors/Analysts:
Steven Weber, 800-213-5542
investor@fico.com

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Contacts

FICO
Media:
Stephen Astle, 415-446-6204
stephenastle@fico.com
or
Investors/Analysts:
Steven Weber, 800-213-5542
investor@fico.com