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FICO Awarded Drexel LeBow Analytics 50 Award for the FICO Safe Driving Score

June 7, 2019 FICO

For the third year in a row, FICO was honored with the Drexel LeBow Analytics 50 award for our innovative work on the FICO® Safe Driving Score. The university’s Center for Business recognizes 50 organizations nationwide, who leverage analytics in notable and innovative ways to solve business problems. Industry honorees include retail, insurance, sports, healthcare, transportation and finance. Drexel University’s LeBow College of Business believes analytics strides should be paired with a clear organizational strategy for the most significant impact. Thanks to the Analytics 50 Award, the university is making sure businesses who reach this achievement don’t go unnoticed. Can Arkali, senior director of Scores and Predictive Analytics at FICO, was at awards ceremony in Philadelphia in May to accept the award.

FICO launched the FICO® Safe Driving Score in 2016 in partnership with global risk management leader, eDriving. Per the National Highway Traffic Safety Administration, human error accounts for 94% of crashes, and together, FICO and eDriving believe that proper education and reinforcement of safe driving behaviors can help make roads safer. The FICO® Safe Driving Score has been used in Fleet Safety Management programs by global industry leaders with fleets of tens of thousands of drivers in service, delivery, and sales sectors.

The FICO® Safe Driving Score leverages telematics-based driving data provided by Mentor^SM, eDriving’s smartphone application, on an opt-in basis. The driving data is leveraged to predict the likelihood of future driving incidents by evaluating driving behaviors, such as acceleration, braking, cornering, speeding and cellphone distraction. In addition, the FICO® Safe Driving Score offers a significant level of transparency by providing actionable insights into what specific driving behaviors drivers need to demonstrate to improve their scores or to maintain current high-level scores. Through the Mentor^SM app, the FICO® Safe Driving Score provides a driver’s risk score after each valid trip and over time. The higher the score, the more likely a driver is to display safe driving behaviors and to avoid collisions in the future.

With the support and recognition from organizations such as Drexel University, FICO® is empowered to continue innovating. And as the FICO® Safe Driving Score becomes more accessible, companies will have the advantage of enabling safer driving behavior moving forward, which will ultimately help their employees return home safe to their families every night.

To read more about the Drexel LeBow Analytics 50 award and its recipients click here.

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Explore AI and Digital Transformation at FICO World 2019

May 29, 2019 FICO

What innovations in AI and advanced analytics can propel your digital transformation? This is the theme of FICO’s major global conference, FICO World 2019, November 4-7 in New York.

With more than 90 sessions, FICO World attendees will hear the latest case studies, analytic innovations and best practices for making real-time customer decisions and optimizing business results. Industry veterans and innovators will share insights, know-how and advice for using analytics in financial services, banking, automotive finance, mortgage lending, telecommunications, insurance and regulatory compliance.

Tracks for this year’s conference include:

Acquisition, Origination & Growth
AI & Machine Learning
Auto Finance
Collections & Recovery
Decision Management Innovations
Financial Crime & Fraud
Mortgage Lending
Regulatory Compliance
Scoring Strategies
Telecommunications

Held at the New York Hilton Midtown, FICO World is the leading international conference on big data analytics and decision technology, bringing together thought leaders and innovators from around the globe.

“As a leader in the analytics and financial services industry, FICO is able to provide unprecedented expertise and unique insights that will help organizations use data, predictive analytics and applied AI to truly optimize customer engagement and improve business agility,” said Nikhil Behl, FICO’s head of global marketing. “FICO World is where hundreds of FICO customers come together and uncover new ways to use analytics to move their businesses forward.”

Early bird rates are available until May 31. For more information and to register, go to www.fico.com/ficoworld.

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UBS Card Center Wins Security Innovation Award with FICO AI

May 12, 2019 FICO

Congratulations to UBS Card Center on winning the Security Innovation of the Year award at the Retail Banker International Awards. UBS Card Center’s fraud team used the latest artificial intelligence and machine learning capabilities in the FICO^® Falcon^® Platform to stop 84 percent more fraudulent transactions last year than in 2015.

“We are combining our deep expertise in analyzing fraud trends and the latest breakthroughs in AI and machine learning from FICO to keep losses and false-positives low and customer satisfaction high,” said Marcel Drescher, Head of Fraud Services, UBS Card Center (shown above with Manuela Spillmann). “We are gratified by this industry award recognizing our success in stopping fraud.”

UBS Card Center processes roughly 25 percent of all credit cards in Switzerland. The need to optimise costs in the face of fierce competition meant UBS Card Center had to keep fraud write-offs to the very minimum. They were facing new fraud attack volumes but needed to uphold the highest standards for customer experience and satisfaction. This required the use of machine learning to minimize consumer interruptions while investigating more potential cases of fraud, all without adding staff.

To tackle this multi-dimensional problem, fraud experts at UBS Card Center used the free-form rule writing within the FICO Falcon Platform to create complex rules that deployed multiple AI techniques, including adaptive analytics. Adaptive analytics use the results of recent fraud investigations to automatically fine-tune the underlying neural networks in order to accurately reflect the latest fraud landscape. These custom rules, combined with the advanced analytics, were the only way to improve false-positives and fraud detection rates.

Using FICO AI and machine learning, UBS Card Center managed to investigate and resolve 42 percent more fraud alerts without bringing in new staff resources.

“UBS Card Center has reduced the amount of fraud write-offs per compromised card, stopped more fraudulent transactions and mitigated false-positive rates using the FICO Falcon Platform,” said Douglas Blakey, Group Editor Consumer Finance at Timetric Financial Services, which hosted the awards.

You can read more about UBS Card Center’s achievements and Security Innovation award in this Electronic Payments International article.

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Chartis: FICO Is a Category Leader in AI in Financial Services

April 11, 2019 FICO

Chartis Research has named FICO a category leader in the AI in Financial Services, 2019; Market and Vendor Landscape. FICO was named a category leader in both AI analytics and packaged AI applications.

A supplementary report, Vendor Analysis: FICO; Artificial Intelligence in Financial Services, 2019, takes a more detailed look at FICO’s rating and capabilities.

Chartis AI Financial Services Chartis: FICO Is a Category Leader in AI in Financial Services

Source: Chartis Research, Vendor Analysis: FICO; Artificial Intelligence in Financial Services, 2019

The Vendor Analysis report noted that*: “While the use of AI is now prevalent across many industries and emerging use cases, FIs, in many ways, pioneered the use of AI in commercial applications. FICO was among the first to provide AI tools to FIs, and it has continued to invest in ML R&D focused on helping banks meet ever-more sophisticated customer requirements.”

The Chartis Vendor Analysis report highlights the impact of FICO’s AI developments in two areas related to fraud detection and regulatory compliance – real-time payments and anti-money laundering (AML):

“Real-time payments are rapidly gaining traction in the US, spurred partly by dramatic growth in the use of P2P services and mobile payments. FICO’s ML capabilities play a role in protecting these digital interactions, which are especially susceptible to account takeover. FICO’s AI techniques for real-time payments also apply to aspects of recent Payment Services Directive 2 (PSD2) and Open Banking requirements in the UK,” the Vendor Analysis report continued. “FICO has also developed AI techniques in response to regulatory encouragement for innovation and efficiency in AML programs. Recently introduced models monitor transactions to detect anomalies, as well as transaction streams that indicate previous SAR filings by the institution.”

“A lot of companies talk about AI without delivering — in fact, a recent report by MMC Ventures found that 40 percent of European AI start-ups didn’t actually have any AI,” said Stuart Wells, executive vice president and chief technology officer at FICO. “At FICO, we condense decades of banking experience into cloud-based machine learning applications that use the latest Big Data technologies. This Chartis report validates FICO’s deep experience in AI solutions, which have been helping global banks prevent fraud and strengthen consumer loyalty since 1992. With 100+ patents related to machine learning and AI in our portfolio, we continue to lead the field for AI in financial services.”

*Note that these statements and the RiskTech Quadrant^® were published by Chartis Research as part of a larger research document (“Vendor Analysis: FICO; Artificial Intelligence in Financial Services, 2019”) and should be evaluated in the context of the entire document. Chartis evaluates all vendors using consistent and objective criteria, and does not endorse any vendor, product or service depicted in its research publications, nor does it advise technology users to select only those vendors with the highest ratings or other designation. Chartis Research’s publications consist of the opinions of its research analysts and should not be construed as statements of fact.

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Grupo Fleury Streamlines Demand Planning with FICO Platform

March 29, 2019 FICO

Grupo Fleury, one of Brazil’s largest diagnostic medicine companies, has created an automated demand planning management platform – the Fleury Forecaster. Using FICO^® Xpress Insight, Group Fleury has slashed the time needed to create a sales forecast. Forecasts have also become more accurate and granular in detail, with the overall margin of error now less than 10 percent.

For its achievements, Grupo Fleury has been recognized in the AI, Machine Learning & Optimization category in the 2018 FICO^® Decisions Awards.

Grupo Fleury manages a robust demand planning process in order to appropriately allocate its 10,000+ employees at the necessary locations for the appropriate amount of time. In order to manage this complex process, Grupo Fleury must reconcile supply and demand as well as new product plans at both the detailed and aggregate levels.

“Our challenge was to adapt available technologies to managing demand planning processes for a diagnostic medicine business,” said Eduardo Bianchetti, manager of Pricing, Commercial Intelligence and Portfolio at Grupo Fleury. “FICO’s knowledge in operationalizing analytics and optimization was used to build a platform based on artificial intelligence and machine learning.”

“We can now provide the most valuable information to our planning analysts, which facilitates overall decision-making. We are expecting significant cost savings through more efficient resource allocation.”
— Eduardo Blanchetti, Grupo Fleury

The Fleury Forecaster can show both real-time levels of demand and continuously updated demand forecasts across Grupo Fleury’s extensive medical services portfolio. The platform has dynamic dashboards that are important to make critical analysis of the results and that help with managing the forecast process. Having all this information contained in an integrated, user-friendly interface enables the company to identify its most pressing pain points, distinguish its best growth opportunities, and plan to effectively address and capitalize on each.

“Our team worked closely with Grupo Fleury to build a forecast tool with a powerful analytics engine,” said Alexandre Graff, general manager for FICO in Latin America. “This is an excellent example of combining classical statistical time-series models with AI / machine learning techniques and an intuitive user experience to improve speed and performance.”

FICO^® Xpress Insight is one of four core components of FICO^® Xpress Optimization. Learn more in our Optimization Community.

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Myth Busting with Clever Girl Finance and Jenelle Dito, FICO® Score Open Access Program

March 12, 2019 FICO

Bola Sokunbi of Clever Girl Finance recently chatted with Jenelle Dito, Director, FICO^® Score Open Access program, for her podcast episode ‘Dispelling The Most Common Credit Myths’. Jenelle shared her personal story with money, what she learned in the process of her own money challenges and how people can empower themselves with credit knowledge.

This follows the FICO Score Open Access program hitting an important milestone! The program now reaches more than 300 million consumer accounts, provides free access to the FICO^® Score used by lenders for credit decisions and the factors that affect them. Participating institutions deliver the scores to their customers via a variety of channels, including online banking websites, mobile applications and paper statements. More than 170 financial institutions participate in the FICO® Score Open Access program including eight of the top 10 credit card issuers. The FICO Score is the standard measure of U.S. consumer credit risk used in more than 90 percent of consumer lending decisions in the U.S.

In addition, FICO® Score Open Access for Credit and Financial Counseling empowers credit and financial counseling providers in the U.S. such as Operation HOPE and Justine PETERSEN to share FICO® Scores — for example, for financial management plan review — with consumers for free. The program was designed specifically for credit and financial counselors to increase consumer understanding of the FICO Score.

To learn more about the FICO® Score Open Access Program:

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Energy Optimization: Ørsted Wins FICO Decisions Award

February 18, 2019 FICO

I have written about the power of optimization — here is a great case study showing how it can solve problems that previously seemed unsolvable. Ørsted, the world’s leading offshore wind farm developer, has used FICO^® Xpress Optimization to develop a novel digital energy optimization solution for designing an important part of their wind farms. For its achievement, Ørsted was awarded a 2018 FICO^® Decisions Award for AI, Machine Learning & Optimization.

This Danish company has 30 wind farms in operation or under construction, so improving efficiency has a big payoff. In this case, they were able to achieve significant savings while reducing overall design time and improving its ability to investigate different scenarios.

What did they do? In offshore wind farms, the power produced by the turbines is sent via cables to transformer substations, where the power is bundled and sent to shore. With our technology, Ørsted developed a tool called OptiArray to optimally design the cable layout connecting the turbines to the substations.

What does this mean for the business?

Ørsted realized significant savings which are applicable across their entire business.
Ørsted engineers can look for new ways to drive down cost of electricity by testing many “what-if” scenarios.
The success proved the power of mathematical programming in general and FICO Xpress in particular, encouraging other parts of the business to use the power of optimal decision making.

But it’s not just Ørsted that benefits from breakthroughs in energy optimization. As Sid Dash, research director at Chartis Research, noted, “Innovations like this will help to make renewables a bigger piece of the global energy supply picture.” Indeed, wind farm design is a hot area for the use of optimization — two years ago, another FICO customer, Wind Farm Designs, won the same FICO Decisions Award.

Congratulations to the whole Ørsted team!

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Success Stories Wanted for FICO World 2019

February 9, 2019 FICO

Analytics & Optimization
Success Stories Wanted for FICO World 2019

FICO World 2019 Success Stories Wanted for FICO World 2019

Feb082019

Are you a FICO customer with a great story to tell? A business using our technology to solve new problems? We’re looking for you!

FICO welcomes proposals for sessions at our upcoming FICO World conference, which will be held November 4-7 in New York City. We are especially interested in presentations that:

Show how companies have competed more successfully using FICO technology
Demonstrate innovative use of analytics and decision management technology to solve pressing business issues
Present original research or industry studies

FICO World is the leading international conference on Big Data analytics and decision technology, bringing together thought leaders and innovators from around the globe. As a presenter, you will be seen as a thought leader in your industry. All FICO World presenters receive:

Free registration for the conference
Free hotel stay at the conference hotel for the duration of the conference
50% off registration for a guest from their company

Interested in speaking? Fill out the form online or email ficoworld@fico.com.

Ready to register? Visit fico.com/ficoworld.

Posted by FICO in Analytics & Optimization, Collections & Recovery, Customer Engagement, Fraud & Security, Risk & Compliance

FICO Score Research: Explainable AI for Credit Scoring

January 31, 2019 FICO

Is there hope that artificial intelligence and machine learning approaches might soon “square the circle” of delivering superior pattern recognition and prediction, while also adhering to regulatory compliance? The field of explainable AI (xAI) may hold the answer.

FICO’s research team explored this topic in a new paper, “Developing Transparent Credit Risk Scorecards More Effectively: An Explainable Artificial Intelligence Approach”. We presented this at the Data Analytics 2018 event organized by IARIA/Think Mind, where it won the Best Paper Award. We also recently presented it at the Federal Reserve Bank of Philadelphia.

What makes explainable AI relevant is that as financial service firms increasingly embrace AI and machine learning technologies, concerns have emerged around the opaqueness and lack of trust in some of these models. In her opening keynote at the Federal Reserve Bank of Philadelphia’s Fintech Conference, “What Are We Learning about Artificial Intelligence in Financial Services?”, Governor Brainard from the Board of Governors of the Federal Reserve System discussed opportunities and uncertainties around the use of these technologies.

Among the opportunities, “firms view AI approaches as potentially having superior ability for pattern recognition, such as identifying relationships among variables that are not intuitive or not revealed by more traditional modeling.” Among the related uncertainties, she called out the “proverbial black box—the potential lack of explainability associated with some AI approaches.” This lack of transparency is particularly acute for consumer lending, where regulations require lenders to provide adverse action notices. Compliance with these requirements requires explanations for decisions reached through AI models.

Research into AI and Machine Learning for Credit Scoring

To obtain deeper insights, FICO Scores R&D has empirically investigated potential benefits and risks associated with using some of the latest AI and machine learning approaches for credit scoring. We found the biggest benefits to be the efficiency with which highly predictive models can be trained by machine learning. However, this benefit came at the price of increasing opaqueness of these models. We concluded that unleashing pure (i.e., unconstrained by domain expertise) machine learning models into the broad lending market would likely usher in systemic risk, market confusion, and lack of transparency for consumers.

A solution to this conundrum is to forget about replacing the traditional domain expert-led model development process by a purely data-driven machine learning process. Instead, we recommend to focus on ultra-effective ways to augment human domain intelligence with machine intelligence to enable the rapid construction of highly predictive and explainable credit risk scoring models. One such approach developed by FICO is described in detail in our paper and supported by case study results.

At FICO we’re looking forward to more discussions with lenders, domain experts and regulators/consumer advocates around this approach, as well as other approaches we’re pursuing around explainable AI that are applicable for consumer credit scoring and beyond. To learn more, see these recent blog posts.

Best Paper Award FICO Score Research: Explainable AI for Credit Scoring

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FICO Kicks Off Consumer Financial Education Program, “Score A Better Future”

December 6, 2018 FICO

Last week, FICO kicked off its Score A Better Future program with a community event focused on credit education at Harris-Stowe State University in St. Louis, MO. It was the first of our new series of free educational events across the country that bring together consumer advocates, credit educators and community leaders to help Americans learn about credit scores and financial tools to help them achieve their dreams.

We partnered with a number of organizations focused on financial education and empowerment initiatives to bring the initial event together, including Justine PETERSEN, a St. Louis-based organization that assists low-income individuals and families to develop, maintain and increase financial assets, as well as National Consumers League, the St. Louis American, City of St. Louis Treasurer’s Office of Financial Empowerment, and the St. Louis Regional Unbanked Task Force.

Check out a recap of the key highlights from the event:

Consumers gain valuable credit tools. The event began with remarks from Joanne Gaskin, Senior Director, Scores and Analytics at FICO, and an educational session led by Tom Quinn, Vice President of Scoring at FICO. Tom discussed common myths and facts about credit and outlined the key ingredients in FICO® Scores, which are critical to managing credit successfully.
Credit scores are top of mind for many. Attendees were eager to learn more about how to improve their credit scores. During the event, attendees were given free access to their FICO® Score – the score used in over 90% of all lending decisions – and easy-to-understand explanations of the top factors that impacted their FICO® Score.
A personalized approach fuels empowerment. We understand that every individual’s credit journey is unique. That’s why each attendee was offered on-site, free access to one-on-one credit counseling from Justine PETERSEN, a participant in FICO’s Open Access Each individual that participated in these sessions walked away with a custom plan for working toward and meeting their targeted financial goals. And, they’ll be able to regularly check in with the credit counselors they met with at our event to share their progress and get additional guidance for staying on track.

To keep this momentum going, FICO will continue to work closely with our event partners to provide credit education tools and resources to individuals in St. Louis. In addition, we’ll be applying learnings from this initial event to help even more Americans improve their understanding of FICO® Scores and their overall financial health going forward.

At FICO, through initiatives like Score A Better Future and FICO® Score Open Access, which enables over 160 financial institutions to share free access to the FICO® Scores, we are committed to empowering more consumer access to credit and fueling economic growth.

Interested in attending a future Score A Better Future event? We’ll be in Atlanta, GA, on Saturday Dec. 8. Learn more and register here.

Check back here on the blog for future updates on FICO’s various financial inclusion programs and activities.

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Tag Archives: FICO

FICO Awarded Drexel LeBow Analytics 50 Award for the FICO Safe Driving Score

Explore AI and Digital Transformation at FICO World 2019

UBS Card Center Wins Security Innovation Award with FICO AI

Chartis: FICO Is a Category Leader in AI in Financial Services

Grupo Fleury Streamlines Demand Planning with FICO Platform

“We can now provide the most valuable information to our planning analysts, which facilitates overall decision-making. We are expecting significant cost savings through more efficient resource allocation.”
— Eduardo Blanchetti, Grupo Fleury

Myth Busting with Clever Girl Finance and Jenelle Dito, FICO® Score Open Access Program

To learn more about the FICO® Score Open Access Program:

Energy Optimization: Ørsted Wins FICO Decisions Award

Success Stories Wanted for FICO World 2019

Analytics & Optimization
Success Stories Wanted for FICO World 2019

FICO Score Research: Explainable AI for Credit Scoring

Research into AI and Machine Learning for Credit Scoring

FICO Kicks Off Consumer Financial Education Program, “Score A Better Future”

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“We can now provide the most valuable information to our planning analysts, which facilitates overall decision-making. We are expecting significant cost savings through more efficient resource allocation.”— Eduardo Blanchetti, Grupo Fleury

To learn more about the FICO® Score Open Access Program:

Research into AI and Machine Learning for Credit Scoring

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“We can now provide the most valuable information to our planning analysts, which facilitates overall decision-making. We are expecting significant cost savings through more efficient resource allocation.”
— Eduardo Blanchetti, Grupo Fleury