Fair Isaac Corporation - FICO STOCK NEWS

FICO's latest consumer fraud survey reveals that Malaysians have low tolerance for inefficient digital experiences when opening financial accounts. 64% expect to answer 10 questions or less during a personal bank account application, with 33% abandoning if asked more than five questions. One in four Malaysians will give up after 10 minutes.

Despite increased identity checks due to fraud concerns, 30% of bank customers have reduced or stopped using existing accounts due to cumbersome verification processes. Consumers show varying patience levels for different account types, with 41% abandoning savings account applications and 39% abandoning personal bank account applications due to complex checks.

While digital applications offer convenience, 77% of Malaysians believe in-branch applications provide better security. The challenge for banks is to balance security and convenience, leveraging technologies like improved identity verification and open banking to streamline processes without compromising safety.

FICO, a global analytics software leader, is hosting a free Score A Better Future™ Fundamentals credit education event for teens from the Boys & Girls Clubs of the Peninsula on July 24, 2024. The event aims to educate students on personal finance and credit, including an overview of the FICO® Score, used by 90% of top US lenders.

As part of FICO's 'Fields of Financial Empowerment' partnership with Chelsea FC and the U.S. Soccer Foundation, participants will attend the Chelsea x Wrexham match for free after the workshop. This initiative is part of a nationwide tour to improve financial literacy through workshops.

The program is designed to help teens understand how FICO® Scores can impact their future and develop good financial habits. Educators at accredited middle and high schools can access the Fundamentals curriculum and materials through the Fundamentals website.

FICO has appointed Nikhil Behl as the new EVP for its software business, effective July 1. Behl will now oversee all technology and go-to-market functions. He has been with FICO since 2014, holding various leadership roles, including EVP and Chief Marketing Officer, and EVP for software sales and marketing. CEO Will Lansing praised Behl's decade-long contribution to the company, highlighting significant brand value and market growth. Behl brings experience from previous roles at HP and two e-commerce startups. This appointment aligns with FICO's vision to drive digital transformation through its FICO Platform.

FICO has announced that Encompass Lending Group and Equity Resources, Inc. are adopting the new FICO® Score 10 T credit scoring model. This decision comes through their membership in Lenders One® Cooperative, a national alliance aiding independent mortgage bankers, banks, and credit unions. The FICO Score 10 T model is designed to enhance lending decisions, reduce delinquencies, and increase mortgage loan approvals. Equity Resources, Inc., licensed in 20 states and the District of Columbia, aims to leverage this model to qualify more veterans for VA home loans. Encompass Lending Group, serving 46 states plus the District of Columbia, seeks to expand homeownership opportunities using this model. FICO claims that the Score 10 T model can boost mortgage originations by up to 5% and reduce default risk by up to 17%, offering more precise credit risk management.

The latest analysis from FICO reveals significant changes in UK credit card usage and repayment trends from March 2023 to March 2024. Rising costs and inflation have led to higher consumer spending and a noticeable decline in the percentage of payments made towards balances, which currently stands at 36.4%. December 2023 saw record high spending and balances, with average spend per card reaching £850 and balances hitting £1,780.

Missed payments have increased year-on-year, particularly among established cardholders (1-5 years). The usage of credit cards for cash withdrawals has also risen. FICO advises lenders to adopt proactive strategies to address increasing debts and missed payments, including reviewing credit limits and offering better rates to maintain customer loyalty.

Global analytics software leader FICO announced that its Chief Analytics Officer, Dr. Scott Zoldi, has been named one of American Banker’s 2024 Innovators of the Year. This award recognizes leaders in the banking and fintech sectors who are driving innovation and contributing significantly to the industry.

Dr. Zoldi has been noted for his work in Responsible AI, Ethical AI, and blockchain technology, holding over 130 analytic patents. His innovations include an immutable ledger for data and model governance, ensuring responsible AI practices.

The award was presented at the American Banker’s DIGITAL BANKING conference held on June 24-25, 2024, at The Boca Raton resort in Florida.

FICO has announced its collaboration with Chelsea Football Club and the U.S. Soccer Foundation for the 'Fields of Financial Empowerment' tour, focusing on financial education. This year, FICO is expanding its sponsorship to include Chelsea's women's team. The initiative aims to provide free financial workshops for teens and adults in various U.S. cities, coinciding with Chelsea FC's pre-season tour. These workshops will help attendees gain insights into managing credit and achieving financial goals. FICO continues to lead in financial education, offering both live and on-demand resources to enhance financial literacy.

GXS Bank, a digital bank in Singapore, has significantly improved its onboarding efficiency using the FICO Platform, allowing for credit decisions in milliseconds and loan approvals in under three minutes. Leveraging alternative data from ecosystem partners like Grab and Singtel, GXS extends credit to applicants with credit history. This implementation took just three months and led to GXS winning the 2024 FICO Decisions Award for Customer Onboarding & Management. The bank aims to use FICO's capabilities for future credit products across Southeast Asia.

The FICO UK Credit Card Market Report for March 2024 shows a 2.8% month-on-month drop in average UK credit card spending to £765, the lowest in 12 months.

Average credit card balances fell slightly but remain 7.2% higher year-on-year at £1,760. The number of accounts with one missed payment rose by 15.3% month-on-month but is slightly lower compared to March 2023. Accounts missing two and three payments increased year-on-year by 5.5% and 8%, respectively.

Credit limits increased month-on-month and year-on-year. The percentage of payments to balance fell by 0.2% month-on-month and 4.2% year-on-year. Although cash sales as a percentage of total sales fell by 0.2%, they are slightly higher than last year.