FICO Partners with Atto to Build Predictive Models with Real-Time Transactional Data

Rhea-AI Summary

Atto partners with FICO to offer UK lenders credit risk solutions using Open Banking data. The collaboration aims to enhance risk management and customer service through transaction-based predictive models.

Insights

Financial Analyst

The strategic partnership between Atto and FICO is poised to bring significant advancements in credit scoring for UK lenders. By incorporating Open Banking data into credit risk assessment, lenders are likely to see a refinement in risk segmentation. This could lead to more precise lending decisions, potentially reducing default rates and improving the profitability of credit portfolios. The integration of transactional data into credit scoring is not entirely new, but the partnership promises to streamline the process, making it more accessible and actionable for lenders.

As Open Banking gains traction, the financial services industry is witnessing an evolution in data management and utilization. This partnership could set a precedent for how lenders leverage consumer data, balancing the need for privacy with the benefits of enhanced data analytics. Lenders who adopt this technology early may gain a competitive edge in customer acquisition and retention by offering more tailored financial products.

Market Research Analyst

From a market perspective, the collaboration between Atto and FICO is an indicator of the growing importance of data analytics in financial services. The demand for more sophisticated credit scoring methods is likely to increase as the market becomes more competitive. This partnership may spur innovation across the sector, prompting other analytics firms to develop similar offerings. As a result, we can expect a surge in the market for credit risk solutions that prioritize real-time data analysis.

Furthermore, the move towards more granular risk assessment models could influence consumer behavior, with individuals becoming more conscious of how their transaction data impacts their creditworthiness. This increased awareness could lead to more prudent financial behavior, which in turn could affect overall market risk levels.

Economist

In the broader economic context, the enhanced credit scoring techniques stemming from this partnership could contribute to financial stability. By enabling lenders to make more informed decisions, the risk of credit bubbles and subsequent market corrections may be mitigated. Additionally, improved risk management strategies can contribute to a healthier lending environment, which is important for economic growth.

However, the shift towards data-intensive credit scoring also raises concerns about data privacy and the potential for socioeconomic bias in lending practices. It will be important for regulators to monitor these developments to ensure that they do not inadvertently lead to financial exclusion or discrimination.

Risk scores based on consumer-permissioned Open Banking data can enhance lenders’ risk management and improve customer service

LONDON--(BUSINESS WIRE)-- Atto, a leading provider of credit risk solutions using transactional data, is thrilled to announce a strategic partnership with FICO, a global analytics software leader, for the UK market. This partnership will enable UK lenders to easily integrate Open Banking data into the credit scoring process.

Atto and FICO are combining their expertise to deliver transaction-based scores that rank-order consumers’ risk by analysing up-to-date consumer-permissioned current account and tradeline transaction data. The combination of Atto's Open Banking technology and FICO’s rich heritage in transaction data analytics can provide lenders with predictive models built on Open Banking data for more targeted risk decisioning. Both companies have extensive experience with Open Banking data; FICO has built scoring models using Open Banking data for other markets since 2018.

"We are excited to join forces with FICO to bring transaction-based predictive models to the forefront of the credit risk industry," said Clare McCaffery, CCO at Atto. "Risk managers can leverage these scores informed by Open Banking transactional data, giving them a to-the-second view of their customers. We’re delighted to be pushing the world of credit risk forward alongside FICO."

The Atto Open Banking score, developed by FICO, can enable lenders to enhance their risk management strategies and drive greater efficiency in lending processes. By leveraging up-to-date Open Banking transaction insights, lenders can improve customer acquisition, manage portfolios to greater performance, and mitigate risks to achieve sustainable growth.

“This partnership represents a powerful combination of industry-leading expertise and cutting-edge technology, which can dramatically improve UK lenders’ ability to serve their customers with the right products and offers,” said Alexandre Graff, global head of Global Partners & Alliances at FICO. “Together, Atto and FICO are committed to empowering lenders with the tools they need to compete and grow their business.”

For more information about Atto, their models, or their risk decisioning insights, visit www.atto.co. To learn more about FICO and its analytics platform, visit www.fico.com.

About Atto

Atto takes the lead with a clear mission, to shape a more predictable future for lenders. Using real-time bank transaction data, Atto delivers a suite of predictive models to empower risk management.

Atto offers a range of insights that gives risk managers a detailed view of customer spending, saving, and earning. This added level of understanding enhances credit risk assessment and promotes a more compliant lending environment.

Providing accurate foresight lies at the heart of Atto's values. By leveraging current financial information, consumers are more likely to receive equitable treatment, whilst businesses gain the tools to make more informed and appropriate lending decisions.

With innovation in data science at its core, Atto paves the way for a future where complex decisions can be made in real-time with impossibly recent data. Learn more at https://www.atto.co/.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and other countries, improving risk management, credit access and transparency. Learn more at www.fico.com.

FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240410868565/en/

Contacts - Atto:

Caterina Ponsicchi

caterina@atto.co

Contacts – FICO:

Wendy Harrison/Parm Heer

ficoteam@harrisonsadler.com

0208 977 9132

Source: FICO

FAQ

What is the partnership between Atto and FICO about?

Atto and FICO have partnered to integrate Open Banking data into credit scoring processes for UK lenders.

What can lenders achieve through the Atto-FICO partnership?

Lenders can enhance risk management, improve customer acquisition, manage portfolios efficiently, and mitigate risks using transaction-based predictive models.

Who is Clare McCaffery and what is her role?

Clare McCaffery is the CCO at Atto, and she expressed excitement about the partnership with FICO.

How can the Atto Open Banking score benefit lenders?

The Atto Open Banking score, developed by FICO, can help lenders enhance risk management strategies and drive efficiency in lending processes.

What is the goal of the partnership between Atto and FICO?

The goal is to empower UK lenders with industry-leading expertise and cutting-edge technology to improve customer service and offer suitable products.