Fair Isaac Corporation - FICO STOCK NEWS

FICO has secured the Tech of the Future – Blockchain and Tokenisation award at the Banking Tech Awards in London for its groundbreaking application of blockchain technology in AI model governance. The company has developed and patented an immutable blockchain ledger that tracks the complete lifecycle of machine learning models, marking the first-ever use of blockchain for this purpose.

The technology ensures compliance with responsible AI standards and regulatory requirements by tracking development, operationalization, and monitoring of AI models. This innovation previously earned FICO a Global Finance Innovators award. The company's commitment to ethical AI is demonstrated through its FICO® Falcon® Fraud Manager solution, which pioneered the use of neural networks in 1992 and currently oversees approximately 4 billion payment cards worldwide.

Mortgage Capital Trading (MCT) and FICO have announced a strategic collaboration to integrate FICO® Score 10 T into the MCT Marketplace, the largest mortgage asset exchange for the U.S. secondary market.

This integration aims to benefit mortgage lenders and investors by leveraging the predictive power of FICO Score 10 T, which can increase mortgage originations by up to 5% without additional credit risk and reduce default risk and losses by up to 17%.

Tom Farmer, Chief Investment & Corporate Development Officer at MCT, stated that the enhanced precision of FICO Score 10 T could help expand opportunities and optimize margins for their clients. Devin Norales, Director of Mortgage and Capital Markets at FICO, emphasized the improved credit risk transparency and long-term portfolio performance offered by the new scoring model.

With 35% of mandatory, delegated mortgage volume transacted on MCT Marketplace, the integration will be tested by a pilot group and is expected to be available to all users by mid-2025.

FICO has launched the Lenders Leading Inclusion Program to help Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) expand credit access for underserved communities. The program provides access to FICO® Score XD and UltraFICO® Score, which can reach over 50% of the U.S. credit-eligible population.

The initiative addresses the needs of nearly 53 million U.S. consumers with or no credit bureau data, including 25 million 'credit invisible' individuals. Participating institutions will receive alternative data scoring tools, program adoption resources, and inclusion-led lending strategy consulting. FICO Score XD utilizes phone and utility payment history, while UltraFICO Score considers consumer banking data to evaluate creditworthiness.

Cardinal Financial achieved a milestone by issuing the first-ever mortgage-backed security (MBS) with loans decisioned using FICO Score 10 T. This pool, traded on November 25, includes VA loans assessed with FICO's newest credit score model, which incorporates trended data for better predictive power. The adoption of FICO Score 10 T enabled more favorable loan terms for military and active-duty borrowers without increasing credit risk. FICO collaborated with the U.S. Veterans Administration to confirm the score's acceptance ahead of the Federal Housing Finance Agency's transition requirements. Over 21 mortgage lenders have adopted FICO Score 10 T for non-GSE loans, enhancing credit risk transparency and expanding homeownership opportunities.

FICO has announced that Nate Silver will deliver a keynote address at FICO® World 2025, taking place in Hollywood, FL, from May 6-9, 2025. The conference, focusing on applied intelligence breakthroughs, will also feature New York Times bestselling author Jordan Ellenberg. Silver will discuss risk management and navigating uncertainty, drawing from his latest book. The event expects to attract more than 1,500 business leaders from over 60 countries, showcasing speakers from more than 50 companies who will share strategies for using AI and applied intelligence in customer management, fraud prevention, and digital transformation.

FICO reports that the average Canadian FICO® Score has decreased from 762 to 760 in April 2023. This decline reflects increasing financial strain among consumers, with notable increases in missed payments and debt levels. Key findings show a 9.6% year-over-year increase in 90+ days past due credit obligations, while industry-specific delinquencies rose 12.5% for auto loans and 14.2% for real estate loans. Credit card debt is approaching pre-pandemic levels, with average balances up 4.9% year-over-year. New credit activity has returned to pre-pandemic levels at 33.5%, suggesting consumers may be seeking additional credit to manage rising debt and interest rates.

FICO (NYSE: FICO) will host a Score A Better Future™ financial literacy event at Clark Atlanta University on November 22, 2024. The event features tennis star Chris Eubanks and Congresswoman Nikema Williams in a fireside chat, targeting students from Atlanta area HBCUs including CAU, Morris Brown College, Morehouse College, and Spelman College.

The initiative addresses concerning statistics: 90% of Gen Z adults believe their finances would improve with better financial education, while fewer than half check their credit scores. Students will receive free access to credit tools and financial education resources. The workshop aims to bridge the knowledge gap in credit, budgeting, and financial planning, offering students essential tools for their financial journey.

FICO and Jersey Telecom's Customer Communications Service Scam Signal solution has won the Best Anti-Fraud Solution award at the Credit & Collections Technology Awards. This innovative solution uses telephony signals to detect potential scams in real-time, particularly targeting authorized push payment (APP) fraud. The technology integrates telephony data with fraud decision-making and prevention systems, enabling immediate customer intervention.

Banks using the solution have reported significant results: 41% reduction in scam victims, 44% decrease in fraud losses, and 55% lower false positives. The system works across 2G, 3G, 4G, 5G Volte and Wi-Fi calling, with plans to extend to UK landlines. With APP fraud causing £460 million in UK losses in 2023, this solution addresses a critical need in fraud prevention.

FICO's new survey reveals German consumers' growing demand for enhanced banking security amid rising real-time payments (RTP) and fraud concerns. While 83% of Germans use RTP, only 17% plan to increase usage in the next year, showing an 8% decrease from previous year. 63% of respondents reported receiving potential scam communications, up 12% from 2023.

Key findings show that 43% of consumers want improved fraud detection systems, and 65% believe banks should compensate fraud victims. Customer satisfaction is crucial, with 75% currently satisfied with their bank's fraud handling. However, 11% would switch banks over inadequate fraud response. For fraud alerts, 37% prefer banking app notifications, followed by phone calls (23%) and text messages (18%).