Fair Isaac Corporation - FICO STOCK NEWS

On May 26, 2021, FICO announced the launch of the upgraded FICO® Falcon® Fraud Manager model for Retail Banking. This new version incorporates a Scam Detection Score that leverages machine learning to detect and prevent authorized push payment (APP) scams, improving detection rates by 50%. Driven by over 120 patents in fraud-specific AI, Falcon safeguards over 2.6 billion payment accounts globally. As APP scams rise, FICO's advanced analytics aim to equip banks with innovative tools to combat fraud in real-time.

FICO and Corinium released the State of Responsible AI report highlighting significant gaps in AI governance. It found that 65% of organizations cannot explain AI model decisions, and 73% struggle to obtain executive support for AI ethics. Alarmingly, only 20% actively monitor AI for fairness. The study surveyed 100 C-level executives, revealing a concerning lack of understanding of AI ethics within leadership. Despite the rise in AI tool usage, 49% reported increased resources for AI projects, yet only 39% prioritized AI governance.

FICO has appointed Ben Nelson as its new Chief Information Security Officer (CISO). Nelson brings over 20 years of experience in information security and cloud platforms, previously serving as CISO at Tableau, a Salesforce company. His role will involve leading FICO's information security management program to protect client data and ensure compliance with regulatory requirements. Nelson expressed enthusiasm for joining FICO, highlighting the importance of cloud security strategies in today's business environment.

A new study by Forrester Consulting for FICO shows that the FICO® Decision Modeler delivers a remarkable 356% return on investment over three years. This tool, part of the FICO® Platform, enables businesses to optimize decision-making through enhanced analytics and automation. The findings highlight improved customer experience, faster decision-making processes, and increased revenue from loan approvals, while also enabling organizations to scale their operations efficiently.

FICO (NYSE: FICO) is organizing a free online financial education event on May 20, 2021, in partnership with local and national nonprofits, aimed at Newark-area consumers. The event, part of the Score A Better Future initiative, will focus on understanding FICO Scores and improving overall financial health. Senator Bob Menendez will provide opening remarks, and participants can avail of free one-on-one credit coaching. The event highlights FICO's commitment to enhancing financial literacy and empowering consumers to achieve their financial goals.

AMAG Leasing AG has successfully implemented the FICO® Platform, enhancing its credit granting process. The automation has led to a 50% increase in staff productivity, allowing the company to handle more applications. Complex changes can now be made in under a week instead of two months, with an expected return on investment in just over six months. This project was completed remotely, showcasing adaptability during the pandemic. The cloud-based system offers flexibility and better decision-making capabilities, supporting AMAG's goal to double its application volume.

Grupo Monge, a leading Central American retail company, has enhanced customer credit approval by 10% and reduced operational expenses by 25% through the adoption of FICO Blaze Advisor, which streamlines credit assessment. The implementation has led to a 30% decrease in credit application evaluation time. Grupo Monge's efforts in financial inclusion earned them the 2021 FICO Decisions Award. This initiative aims to provide accessible financing options to underserved consumers across six countries, ultimately driving business growth.

FICO reported strong second quarter fiscal 2021 results with net income of $68.7 million ($2.33 per share), up from $58.3 million ($1.94 per share) year-over-year. Non-GAAP net income reached $90.2 million ($3.06 per share), compared to $64.3 million ($2.14 per share) previously. Revenue increased to $331.4 million, up from $308.0 million, driven by a 31% rise in scores revenues ($168.7 million) despite an 8% decline in applications revenue. The company announced the sale of its Debt Collection and Recovery business, expected to have an immaterial impact on profits, and plans an Accelerated Share Repurchase program post-sale.

FICO (NYSE:FICO) and Constellation Software (TSX:CSU) announced a binding agreement for Constellation to acquire FICO's Collection and Recovery business. This division automates various consumer collection processes and represents less than 10% of FICO's revenue. The acquisition is subject to closing conditions, but FICO anticipates an immaterial impact on future operating profits. Leadership from the Collection and Recovery team will remain post-acquisition. Wells Fargo Securities served as FICO's exclusive financial advisor.