Fair Isaac Corporation - FICO STOCK NEWS

A new FICO global survey reveals increasing concerns about real-time payment (RTP) scams, with 56% of consumers reporting family and friends as victims in 2024, up from 51% in 2023. The study highlights that 50% of consumers want banks to improve their fraud detection systems, while 65% believe banks should reimburse scam victims for losses.

Regional variations show scam impacts differ, with Latin America reporting the highest rate at 69%, followed by Asia-Pacific at 56%, Europe at 48%, and North America at 47%. Customer retention is at stake, with 13% of consumers globally considering switching banks if dissatisfied with scam management. The survey also found that 73% of consumers would view their banks positively if they prevented suspicious RTP transactions.

FICO reported strong Q4 fiscal 2024 results with revenues of $453.8 million, up 16% from the prior year. GAAP earnings reached $5.44 per share, while Non-GAAP EPS was $6.54. Scores revenues grew 27% to $249.2 million, driven by a 38% increase in B2B revenue. Software revenues increased 5% to $204.6 million, with Platform ARR growth of 31%. The company provided FY2025 guidance projecting revenues of $1.98 billion and GAAP EPS of $25.05.

FICO has launched the FICO® Score Mortgage Simulator, a new analytic tool designed for mortgage professionals to help potential borrowers understand how different credit decisions could affect their FICO Scores. The simulator enables lenders to run various credit scenarios, such as paying off loans or reducing credit card balances, to project potential score changes and their impact on loan eligibility. Xactus is the first technology partner to implement this tool, which uses actual FICO Score algorithms to provide dynamic credit scenario planning and enhance consumer experience by offering actionable recommendations for better loan terms and mortgage qualification.

Atlantic Bay Mortgage Group has adopted FICO® Score 10 T for mortgages not sold to Fannie Mae or Freddie Mac. The new scoring system incorporates trended credit bureau data to assess consumer credit behavior over time, rather than at a single point. According to FICO, the Score 10 T can increase mortgage approval rates by up to 5% without additional credit risk, or reduce default risk and losses by up to 17% at a 680 cutoff. Informative Research will supply Atlantic Bay with the new credit scores, enabling them to serve a broader range of customers, including first-time and underserved borrowers.

FICO, a global analytics software leader, has scheduled its fourth quarter fiscal 2024 financial results announcement for November 6, 2024, after market close. The company will host a conference call at 5:00 p.m. Eastern time on the same day. The presentation will be accessible via webcast on FICO's investor website, with a replay available through November 6, 2025.

FICO has formed a strategic partnership with Tata Consultancy Services (TCS) to deliver advanced optimization and decision management solutions globally. TCS will utilize FICO® Platform, a low-code/no-code solution, to create industry-specific solutions powered by real-time analytics and AI. An initial focus is 'truck roll' optimization, which has already shown success with Traxión of Mexico, achieving 40% reduction in empty trips and $5M annual savings. The partnership will also address climate-related business risks through predictive modeling and develop solutions for telecommunications and media sectors, focusing on reducing churn and optimizing costs.

FICO's UK Credit Card Market Report for August 2024 reveals concerning trends in consumer credit behavior. Average credit card spending increased to £835 (+2.3% month-on-month), while payment-to-balance ratios declined by 3.2% to 36.6%. Average balances rose to £1,825 (+1.2% month-on-month, +5.4% year-on-year). Notably, accounts with missed payments increased significantly year-over-year across all delinquency categories. Only 44% of customers use direct debit for payments, with newer customers showing declining adoption. While cash usage increased 1.3% month-on-month to 3.5%, it remains 4.2% lower than August 2023.

FICO and U.S. Senator Mark Warner are continuing their partnership to host the Virginia Financial Empowerment Series, offering free credit education workshops in Norfolk and Portsmouth, Virginia, on October 29 and 30, 2024. The series, part of FICO's Score A Better Future™ program, aims to enhance financial literacy throughout Virginia.

Two workshops are scheduled: one for individuals and small business owners on October 29, focusing on improving FICO® Scores, and another on October 30 specifically for small business owners, addressing how credit can support business growth. The events will provide information on FICO® Scores, lending decisions, and steps for improving financial health. Attendees can also receive free credit counseling from Money Management International (MMI).

The workshops are organized in collaboration with local partners Mustard Seed Place and the Metropolitan Business League, emphasizing the importance of financial education in achieving financial wellness.

FICO, a global analytics software leader, is set to host a booth at the Las Vegas Asian Night Market on October 19, 2024, from 5PM to 11PM at the College of Southern NV, Charleston Campus. This initiative, in partnership with the Asian Community Development Council (ACDC), aims to bridge financial literacy gaps in the Asian American, Native Hawaiian, and Pacific Islander (AANHPI) communities.

At FICO's booth, attendees will find educational resources on improving credit health, understanding FICO® Scores, and developing strong financial habits. Visitors can learn how to obtain their FICO® Scores for free and schedule consultations with Money Management International. The event will also feature a raffle for NASCAR Cup Series tickets.

The Asian Night Market celebrates AANHPI culture while supporting local businesses, with vendors retaining 100% of their profits and net proceeds from ticket sales supporting community services.