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Leveraging FICO technology to create personalized customer experiences

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Leveraging FICO technology to create personalized customer experiences

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Customer Credit Lifecycle

© 2019 Fair Isaac Corporation. All rights reserved. 2

Introduction

Overview

Technology means more than just automating processes: used properly, it opens up new worlds. It astounds, amazes, inspires and above all, delivers an experience that is nothing less than transformational. This collection of stories from FICO customers around the globe illustrates innovations and ingenuity across the credit lifecycle. The organizations featured here speed processes and reduce risk, using new technology and analytics to improve profitability and transform the customer journey.

We hope these stories help you better understand FICO’s goal to support you in solving all of your customer lifecycle challenges.

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Customer Credit Lifecycle

Introduction ...........................................................................................................2

Origination .............................................................................................................4

Customer Management .......................................................................................28

Collection and Recovery ......................................................................................38

Marketing.............................................................................................................65

Table of Contents

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Customer Credit Lifecycle

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Origination

SunTrust.................................................................................................................5SunTrust transforms origination process and improves customer experience

SunTrust Customer Testimonial .............................................................................7

Vanquis ..................................................................................................................8Vanquis Bank gains agility, opening new credit possibilities with FICO® Origination Manager

Vanquis Customer Testimonial ............................................................................10

TBC Bank .............................................................................................................11TBC Bank streamlines processes, boosts sales and increases profits

FICO & TBC Bank Customer Testimonial ..............................................................13

Nationwide Building Society ................................................................................14Nationwide streamlines origination processes and improves customer service

FICO & Nationwide Building Society Customer Testimonial .................................16

Raiffeisen Bank ....................................................................................................17Raiffeisen Bank speeds underwriting, reduces risk in developing markets

Kabbage ...............................................................................................................19Data-driven lender replaces unmanageable decisioning technology with FICO® Origination Solutions

VTB24 — Russian Bank ........................................................................................21Russian Bank increases agility, cuts approval times using FICO® Origination Manager

FICO & VTB24 Russian Bank Customer Testimonial ............................................23

Ascentium Capital ................................................................................................24Ascentium makes better small business lending decisions thanks to upgraded FICO® Solution

Harborstone Credit Union ....................................................................................26Harborstone Credit Union slashes business loan processing time with FICO® Solution

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Customer-centric business lending• Improved process drives positive

customer experience

• New account bookings increased 50%

• Lending process exceptions decreased from 90% to 6%

• Automation drives economies of scale

SunTrust transforms origination process

and improves customer experience

Client: SunTrust Bank: leading lender in the southeastern US with 1,300 branches

Challenge: SunTrust needed to improve its business lending process for both the bank and its customers in order to remain competitive.

Solution: FICO® Origination Manager and FICO® Customer Communication Services

Results: SunTrust customers have a user-friendly, efficient process throughout the loan application; the bank responds quickly due to improved workflow and automation; and new account bookings have increased 50%.

Streamlining for efficiency and positive customer experience Atlanta, Georgia–based SunTrust Bank is a major regional lender, with 1,300 branches and $206 billion in assets. SunTrust serves a wide variety of customers with business credit cards and lending solutions, and the bank is always looking to improve its processes so that lending goes more smoothly

ORIGINATION

“ Satisfying our customers is our number-one goal, and FICO helps us provide them with convenient, efficient and automated solutions.” Angela Baker, Senior Vice President, SunTrust Bank

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ORIGINATIONSunTrust transforms origination process

and improves customer experience

for both the bank and its customers. SunTrust recognized it needed to automate manual processes in order to remain competitive and offer a positive customer experience.

“In the past, we had a 100% manual credit underwriting process for business credit cards, and this could result in a disjointed experience for customers,” explains Angela Baker, Senior Vice President at SunTrust Bank. “Meanwhile, we established a corporate vision to become nationally recognized as a client-centric bank, so it was important to us to streamline all areas of the business and eliminate friction points.”

New tools for better operations

As part of this transition, SunTrust sought a solution that was not just a credit underwriting decision engine, but also a workflow management tool that would provide economies of scale and automate processes in alignment with the bank’s ruleset. SunTrust chose the FICO® Origination Solution. The results were dramatic — not only did the bank gain more consistency in its underwriting process, the exception rate went from 90% down to 6%.

The bank’s relationship with FICO was key to expediting these changes. “FICO was a very collaborative and nurturing partner,” says Baker. “We brought in our business requirements and FICO provided us with an agile framework. We built on that implementation success and launched a convenience

lending platform in just three months. We wouldn’t have been able to do that without FICO support.”

Improved application tracking and digital experience

To make the application process even easier for borrowers, SunTrust deployed FICO® Customer Communication Services. “We want every step of the process to be as convenient as possible for our business customers,” says Baker. “Many businesses do their banking during nontraditional banking hours, when in-person visits may not be possible, so we needed to have a digital presence and an electronic workflow for application materials to make the process more seamless.”

Using Customer Communication Services, businesses can upload their documentation whenever it is convenient for them, and the system immediately notifies the bank, so the sales team can proceed with the application as soon as they’re back in the office. This has brought great results for SunTrust. Before using Customer Communication Services, the bank had a 30% drop-off rate from the time an application was submitted due to customer frustration and the availability of digital submissions at competing banks. With Origination Manager and Customer Communication Services, SunTrust can now easily track every single application, and the bank has seen a 50% increase in new accounts booked. The decision-making

process has also gone from a standard of three days down to 30 seconds for 85% of the applications.

The bank is excited about the results so far and is looking for ways to make even better use of its FICO products. “In two years, we’ve gone from 0% fully automated bookings to 20%, and we hope to grow that to 60% by the end of 2019,” says Baker. “We’re currently using Origination Manager for business credit cards and we intend to use it to launch business lending solutions as well. More and more of our competitors are moving to digital solutions, and we’re also facing competition from non-bank disruptors that are 100% automated. Satisfying our customers is our number-one goal, and FICO helps us provide them with convenient, efficient and automated solutions that allow them to bank when they want, where they want and how they want.”

Learn more about

FICO® Origination Manager at

www.FICO.com/originations

and FICO® Customer

Communications Services at

www.FICO.com/CCS.

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Customer Credit Lifecycle

© 2019 Fair Isaac Corporation. All rights reserved. 7

SunTrust and FICO: Digitizing Credit Originations to

Meet Customer Expectations

Watch the success story video

SunTrust Customer Testimonial

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Vanquis Case Study Page 1

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A new origination solution brings flexibility, agility and new capabilities• Rapid development of system

iterations

• Worry-free patches and upgrades with Cloud Edition

• Expanded offerings into new credit types

• The bank sees FICO as a true partner that is invested in its success

Vanquis Bank gains agility, opening new credit

possibilities with FICO® Origination Manager

Client: Vanquis Bank specializes in offering loans and credit cards to people with limited credit history who may have been turned down elsewhere.

Challenge: The bank needed to modernize its customer acquisitions system from an aging and inflexible single-function legacy platform.

Solution: FICO® Origination Manager Cloud Edition

Results: Vanquis now has an agile, flexible, multifunction solution that not only helps improve loan and credit card acquisitions but can be extended to other credit products as well.

Vanquis Bank believes that customers with limited credit history or no credit history still deserve access to credit cards and loans. The UK-based bank has found that serving the underbanked is good business — with 1.7 million customers on the books, and an as-yet-untapped pool of 3 to 4 million Britons in its target audience, Vanquis is thriving. But the bank needed to modernize its customer acquisition infrastructure to keep business growing.

ORIGINATION

“ It was clear that FICO would be a great collaborator — a real partner and not just a supplier.” Glynn Wilson, Head of Business Applications, Vanquis Bank

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ORIGINATIONVanquis Bank gains agility, opening new credit

possibilities with FICO® Origination Manager

“We had a third-party legacy system that was aging and inflexible,” explains Glynn Wilson, Head of Business Applications at Vanquis Bank. “Making changes was difficult and time-consuming. We were looking for a new solution that we could easily adapt to our specific needs without being dependent on our provider for every minor tweak. We wanted the keys to the car, you might say.”

Vanquis examined offerings from leading financial services companies, and FICO®

Origination Manager emerged as the top contender, both because of the product’s capabilities and because of the responsiveness of the FICO team. “FICO understood that we wanted to control the development, which just didn’t work for some of the other providers,” says Wilson. “FICO was more than willing to help us work in the way that we wanted to work. It was clear that FICO would be a great collaborator — a real partner and not just a supplier.”

For Vanquis, it was important that its chosen solution provide agility for fast development, flexibility for integrating the wide array of data that is involved in decisioning, and multifunction capability to adapt to different types

of credit offerings. On the agility front, Vanquis found that Origination Manager was a winner. Working with the FICO development team, a group of four Vanquis developers built a proof of concept for an end-to-end internet channel for credit card origination in just two weeks.

“The development speed that we get with Origination Manager is essential for us,” says Wilson. “There is a lot of competition in the UK in our industry, so we need to be able to get products to market very quickly. We chose the cloud-based Origination Manager offering, and that also brings important benefits. It frees us up from worrying about things like patches and upgrades, which aren’t part of our core business — FICO takes care of all of that for us now.”

On the flexibility and multifunction capability fronts, Vanquis is also very pleased with its product selection. “Our old application was very much a single-function solution, but Origination Manager is a comprehensive decision engine,” says Wilson. “It gives business users better control, because they can develop their own strategies and policies.”

Vanquis is excited about the new opportunities that FICO Origination Manager opens up for expanding the solution into credit areas beyond loans and credit cards, such as car finance. The bank sees this as a big step forward, not just for its business, but for its customers as well. And while the choice of Origination Manager has brought a wide range of benefits, Vanquis believes its relationship with FICO is just as important as the technology.

“We’ve really worked together with FICO to deliver what we believe will be a truly groundbreaking product within our particular part of the industry,” says Wilson. “It has been wonderful to work with very experienced people who really took the time to get to know our business and our specific needs. They’ve got a great attitude and great products.”

To modernize your

origination technology, visit

www.FICO.com/originations.

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Customer Credit Lifecycle

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Vanquis Bank - Agile Technology Accelerates Development

Vanquis Bank Customer Testimonial

Watch the success story video

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© 2019 Fair Isaac Corporation. All rights reserved. 11© 2016 Fair Isaac Corporation. All rights reserved.

New origination solution cuts decision time, boosts profits, improves customer satisfaction• Decision time for some loans cut

from more than a day to less than 15 minutes

• Customer upsell and cross-sell rates increased by 20%

• Loan profits are projected to rise 15%

• Bad debt exposure is projected to decrease 10% due to better risk management

TBC Bank Streamlines Processes, Boosts Sales

and Increases Profits with FICO

Client: TBC Bank, headquartered in Tbilisi, Georgia, has been in operation since 1992 and did US $1.97 billion in loan business in 2015.

Challenge: The bank wanted to replace an existing loan origination system with one that would enable process automation and greater efficiency while boosting customer sales and satisfaction.

Solution: FICO® Origination Manager

Results: Within two months of deployment, TBC Bank had cut some loan origination task times from more than a day to less than 15 minutes. Upsell and cross-sell acceptances increased, and the bank boosted profit and reduced bad debt exposure.

TBC Bank is one of the largest banks in the nation of Georgia, and its commitment to high-quality products and services has garnered it “Best Bank in Georgia” recognition from various publications for 12 of the past

ORIGINATIONTBC Bank Streamlines Processes, Boosts Sales and Increases Profits with FICO

“FICO has the products, consultants and professional services that financial institutions need to stay competitive in the modern marketplace.”Giorgi Alibegashvili, Strategic Project Manager, TBC Bank

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ORIGINATIONTBC Bank Streamlines Processes, Boosts Sales and Increases Profits with FICO

14 years. TBC serves approximately 1.6 million accounts, and has branches, kiosks and ATMs across all regions of the country. TBC has worked hard to develop sophisticated mobile and internet banking capabilities, and they account for an increasingly large percentage of customer transactions.

A New Solution for Modern Markets

In order to stay competitive in the digital world, TBC believes it is important to be agile so it can quickly adapt to changes in the marketplace. The bank also recognizes the importance of optimizing its internal processes. One way to do that is to provide employees with robust software that makes their jobs easier.

To stay agile, TBC needed a new loan origination solution that would help it streamline internal workflows, reduce risk and offer more opportunities to upsell and cross-sell products and build customer loyalty. Making better use of existing data was a key part of this project, but existing systems were not really up to the task. “We are now living in a data-driven era where making good use of data has become increasingly important,” says Giorgi Alibegashvili, Strategic Project Manager for TBC Bank. “We need tools that will allow us to analyze our data and extract real, actionable insights, but our legacy systems were outdated and becoming increasingly difficult to manage, and we had to rely on outside vendors to keep them running properly.”

TBC chose to replace its existing software with FICO® Origination Manager — a modular solution that supports the entire origination process. The solution offers a variety of advanced predictive analytics to help banks make more targeted offers with precise pricing and better-managed customer risk, and it is based on a service-oriented architecture that minimizes IT dependence and simplifies ongoing maintenance.

Decision Times Decreased, Profits and Sales Increased

TBC has been able to automate tasks that had previously been done manually, and the impact of those changes was evident quickly. “Within just two months, we were able to significantly optimize our internal processes,” says Alibegashvili. “Some loan origination transactions that used to take a day or more are now being completed in 15 minutes or less, and we’ve reduced the number of people who have to be involved. And our business users can configure and customize the system themselves, without waiting for IT, so we’re working more efficiently and we’ve decreased the time to market for new products. This is definitely increasing customer satisfaction.”

Overall, TBC has seen a 70% reduction in processing time across its origination operations as a result of automating decisions. Since it started using the FICO solution, the bank has also seen a 20% increase in the acceptance rate for cross-sell and upsell offers. Based on the data

it has seen so far, TBC is projecting a 15% increase in profit due to better limit-setting strategies and a 10% reduction in bad debt as a result of better exposure management.

In addition to tangible business benefits, the bank has been very happy with the relationship it has established with FICO. “They are an excellent partner, both in terms of the technology they offer and the people they have supporting that technology,” says Alibegashvili. “FICO has the products, consultants and professional services that financial institutions need to stay competitive in the modern marketplace.”

Find out how to make your

origination process more

efficient and profitable

at www.fico.com/en/products/

fico-origination-manager.

“We need tools that will allow us to analyze our data and extract real, actionable insights.” Giorgi Alibegashvili, Strategic Project Manager, TBC Bank

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Customer Credit Lifecycle

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FICO & TBC Bank | Partnering for Customer Centric Originations

Watch the success story video

FICO & TBC Bank Customer Testimonial

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Building a Unified Credit Decision Engine• Nationwide employees now have

a consistent view of all customers, regardless of the product they are applying for

• Loan acceptances have increased 5% because the bank has better insights into its existing data

• New and updated products can be brought to market faster — loan product pricing changes now take hours, not weeks

• Nationwide can work with data from multiple credit bureaus instead of being tied to a single provider

Nationwide Streamlines

Origination Processes and Improves

Customer Service with FICO Solution

Client: Nationwide Building Society was founded in the mid-19th century, and over the years it has grown to become the world’s largest mutual financial institution, and the United Kingdom’s second-largest mortgage provider.

Challenge: Nationwide wanted to replace its multi-system credit decision infrastructure with a single unified, multi-bureau decision-making platform.

Solution: FICO® Origination and Customer Management Solutions

Results: Nationwide can now get new products to market faster, has cut the time it takes to offer new loan product pricing from weeks to hours, and has boosted its loan acceptance rates by 5%.

Nationwide Building Society is a member-owned retail financial services provider in the United Kingdom with a mortgage portfolio of £152.9 billion and 5 million checking accounts. Because its customers are also its owners,

ORIGINATION | CUSTOMER MANAGEMENTNationwide Streamlines Origination Processes and Improves Customer Service with FICO Solution

“ It used to take a few weeks to make a pricing change for a personal loan product, and we can now do that within a few hours.”Andrew Jackson, Head of Credit Risk Measurement, Nationwide Building Society

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ORIGINATION | CUSTOMER MANAGEMENTNationwide Streamlines Origination Processes and Improves Customer Service with FICO Solution

Nationwide focuses on being sustainable and offering as much value as possible to those member-owners, rather than maximizing shareholder value or profitability.

Like many organizations, Nationwide had an IT infrastructure that had been built up over many years and consisted of numerous disparate parts. All of these legacy systems worked, but performance was suboptimal, system maintenance was challenging, and upgrading or adding new components was difficult. As a result, customer service suffered. “Because we were using different systems that worked with different data, we sometimes made inconsistent decisions about the same customer for different products,” says Andrew Jackson, Head of Credit Risk Measurement for Nationwide Building Society. “Our heterogeneous IT environment was inflexible, and that made it difficult for us to deliver the best retail credit offers to our customers to meet their financial needs. We needed something more unified and state of the art.”

Finding a New Decision Solution

Nationwide embarked on an effort to find a technology provider that could help create a unified, customer-centric risk decision platform. “There are a number of suppliers in the market, and we did a full review of what’s out there,” says Jackson. “We knew what we wanted — a single decision platform that we could hook all of our application processing into. In the past we were tied

to a single credit bureau, but we wanted a multi-bureau system, because that provides better data and gives us the option to switch one provider for another depending our needs and what sort of contract we can negotiate with them.”

After completing its review of available options, Nationwide chose to work with FICO. “FICO’s decision platform did exactly what we needed it to do,” explains Jackson. “The relationship we have with FICO has been managed very well, and we really enjoy that relationship. It feels like it’s mutually beneficial — we are able to draw on their business and technology expertise, and they gain deeper insights into retail finance because of our extensive experience. The support we got from FICO in implementing the solution was exactly what we needed, so we couldn’t really ask for more.”

Migrating Portfolios to the New System

Nationwide has completed the first phase of the implementation, which involved moving its unsecured personal loan portfolio to the new decision platform. Almost immediately, the bank saw an uptick of 5% in acceptance rates for that portfolio due to better-quality data. It then moved its buy-to-let mortgage portfolio to the new system, and by the end of 2017 will have migrated its much larger prime mortgage book and current account portfolios. “At that point, all of our retail credit product decisions will be made through one single decision engine,” says Jackson. “It will be truly multi-bureau

and will give a consistent view of every customer, which is exactly what we need. We will be quicker to market with changes — it used to take a few weeks to make a pricing change for a personal loan product, and we can now do that within a few hours.”

All of this leads to a better experience for the people who use the bank. “Everything we do at Nationwide is designed to benefit our customers because they are our owners,” says Jackson. “It’s about making the right decisions for them, but it’s also about making decisions efficiently and cost-effectively, because if it doesn’t cost us as much to offer a product, and we can deliver it more quickly, we can give them a lower price and faster service.”

Learn how to streamline

your business processes

with one unified platform at

www.fico.com.

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Customer Credit Lifecycle

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FICO & Nationwide Building Society |

Building A Unified Customer Centric Risk Platform

Watch the success story video

FICO & Nationwide Building Society Customer Testimonial

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Increasing the Speed and Quality of Origination• Boosted application volume

by double-digit percentage

• Significantly improved unsecured underwriting

• Reduced time-to-market for new origination strategies

Raiffeisen Bank Speeds Underwriting, Reduces

Risk in Developing Markets

Headquartered in Vienna, Austria, Raiffeisen Bank offers a breadth of retail banking products and services in 15 markets across central and eastern Europe, serving approximately 15 million customers.

Challenge: Operating across multiple country-based markets, each with their own regulations, risk profiles and consumer preferences, Raiffeisen Bank needed flexible origination solutions that could adapt to a variety of scenarios. They also wanted a long-term partner to help automate and continually improve origination across their operation.

Solution: FICO origination solutions

Results: The bank can deploy the right solutions for each market, enabling it to improve speed-to-market, reduce application processing times and manage risk more effectively.

As if serving almost 15 million customers is not complex enough, Raiffeisen Bank retail operations are spread across 15 countries that vary significantly in the development of their financial sectors, their risk profiles, the types of consumer information available for origination and the rules for using it and consumer preferences.

ORIGINATIONRaiffeisen Bank Speeds Underwriting, Reduces Risk in Developing Markets

“FICO origination solutions help us speed time-to-market, make changes quickly and build solid strategies. Being able to adjust to market conditions promptly is a great benefit.”Piotr Nowak, Country Risk Manager, Raiffeisen Bank International AG

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According to Piotr Nowak, Country Risk Manager at Raiffeisen Bank, the organization must take a tailored approach to risk in each of the markets it serves. “We have different challenges across different markets and products,” Nowak says. “For example, with our unsecured business, in some markets we want to improve the speed of decisioning while maintaining the proper quality of the portfolio. In a more advanced market, we might focus on targeting new segments which may be more risky. There are also differing regulatory challenges in each country.”

Additionally, ever-growing customer expectations put continuous pressure on the bank to increase the speed and quality of origination. “We need solutions that can combine multiple sources of data, handle complex workflows, and enable smooth processing with a minimum number of errors,” says Nowak.

The bank also needs the agility to make changes quickly and easily. “We have to respond to dynamic market conditions and react to changes in portfolio quality by promptly adjusting underwriting strategies,” Nowak says.

The retail risk department at Raiffeisen Bank has been working with FICO since 2007, beginning with consulting services and then moving into software. The collaboration extends across several countries and involves a range of FICO tools for origination, application processing, underwriting and collections.

FICO solutions give Raiffeisen Bank the agility and flexibility it needs to adapt origination practices according to shifting market realities. Because FICO origination solutions are flexible and adaptable, Raiffeisen Bank can deploy one solution to serve multiple markets.

“FICO origination solutions help us speed time-to-market, make changes quickly and build solid strategies. Being able to adjust to market conditions promptly is a great benefit,” says Nowak.

Fine-Tuning Strategies for Better Results Effective underwriting is a key element of success made possible by the bank’s use of FICO solutions. “There are markets in the Balkans which have significant potential, and optimization of underwriting processes can bring major benefits,” says Nowak. ”Last year, we used FICO solutions to achieve substantial improvement in unsecured underwriting in one of our markets.”

Automating Decisioning to Improve ProductivityNowak reports that the automation using FICO solutions helps decrease the involvement of analysts. “Last year in one of our countries we increased the level of automation and made a more efficient workflow for existing customers, which increased volume by double-digit percentages. We were able to implement these changes in a relatively short amount of time.”

Flexibility to Meet Differing Market NeedsWith so many different markets under management, Raiffeisen Bank needs flexibility to deploy the right tools at the right time. “We often combine FICO solutions with tools from other vendors. For example, in some countries we use FICO decision technology with third-party solutions to make smarter decisions, improve flexibility and put power in the hands of the business user. The FICO decision engine cooperates quite well with other vendors’ workflows,” says Nowak.

Using Customer Information to Increase Strategic EffectivenessRaiffeisen Bank needs to get maximum value from the customer information available to it in each market, which varies depending on local practices and regulations. “The decision engine helps us analyze customer data and design multiple strategies. We try to find profitable segments using existing data that can be processed without additional formal requirements such as statements from employers or identification information,” Nowak says. “We are trying to expand our share of customers with a smooth process, country by country.”

To learn more about FICO’s

origination solutions, go to

www.fico.com/originations

ORIGINATION Raiffeisen Bank Speeds Underwriting, Reduces Risk in Developing Markets

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© 2019 Fair Isaac Corporation. All rights reserved. 19© 2016 Fair Isaac Corporation. All rights reserved. 1

Improved Solution Helps Foster Growth for Kabbage and Customers Alike• Kabbage released a new consumer

product in less than 60 days from decision to go-live, a timeline accelerated by its ability to quickly build and adjust its models

• Automating and managing processes from origination through account management contributed to a 300% boost in Kabbage revenue

• Small business customers increase revenue by an average of 72% after working with Kabbage, which now continually refines its models to enhance their value

Data-Driven Lender Replaces Unmanageable Decisioning

Technology with FICO® Origination Solutions

Client: Kabbage has a unique lending approach. It pulls data in real-time from Amazon, eBay, Facebook, Twitter, Intuit QuickBooks and other unconventional data sources to constantly update models for small business loans.

Challenge: Neither of the tools Kabbage had used to make lending decisions could provide the kind of scalability and adaptable modeling that it needed to support its aggressive growth goals.

Solution: FICO® Origination Solutions

Results: Kabbage increased revenue by 300% in the last 12 months by leveraging technologies from FICO and other partners to automate and manage its processes. It also launched Karrot, an expansion into consumer lending, in just a few weeks using the FICO solution.

Time for a ChangeAfter six years in business, Kabbage reached out to FICO for a better way to support the real-time lending decisions it makes every day using online third-party transaction data. “Technology is a vital part of our DNA,” explains Kathryn Petralia, Cofounder and Chief Operating Officer at Kabbage. “We knew we needed a solid technical foundation and reliable partners to help us scale our

ORIGINATIONData-Driven Lender Replaces Unmanageable Decisioning Technology with FICO® Origination Solutions

“ It’s important to work with partners that take away — not add to — your pain, and that’s definitely what we get with FICO.”Kathryn Petralia, Cofounder and Chief Operating Officer, Kabbage

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FICO is a trademark or registered trademark of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2016 Fair Isaac Corporation. All rights reserved. 4109CS_EN 09/16 PDF

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business. But the third-party decisioning technology we originally licensed turned out to be hard to work with, and the custom functionality we built next became unmanageable.”

Flexible Technology and a Close PartnershipTo streamline its decisioning processes, Kabbage wanted a new solution that it could easily modify and use across the credit lifecycle — from initial origination through account management. Kabbage and FICO walked through the lender’s requirements, determining that FICO® Origination Solutions could satisfy them all. “The FICO team has been fantastic about working with us to understand and address our needs,” says Petralia. “We have weekly calls to discuss our implementation and how we can use Origination Solutions even more effectively.”

The faster Kabbage customers receive loans, the sooner they can grow their businesses. “Our customers increase their revenue by an average of 72% after working with us,” says Petralia. “Most of them are small and wouldn’t have access to the quick infusions of capital they need without Kabbage and the technology we use to automate our processes. We’re excited to handle our decisioning with FICO Origination Solutions, which makes it possible for us to manage multiple concurrent models in a way that we couldn’t before.”

Complete Decision Making and Scalable Support for Business GrowthBy using FICO Origination Solutions, Kabbage makes better determinations about lending and experiences multiple benefits, such as:

• Comprehensive modeling. In addition to origination, Kabbage uses FICO Origination Solutions to manage risk and find opportunities to provide extra funds to customers. “We have the account management, payment, collections and servicing models, and we can manage all of those in one place,” says Petralia. “Rather than waiting for help from a developer, our in-house analyst can quickly take care of whatever we need.”

• Ability to rapidly refine models. The company appreciates the solution’s inherent flexibility. “We can include even more data in our models as we identify meaningful, correlative attributes and variables,” says Petralia. “We’re always adding new data sources, and it’s great that we can immediately incorporate them into our models. If we were managing a platform internally, it would take a tremendous amount of time to adapt and build models, but it’s fast and easy with FICO Origination Solutions.”

• Scalability to support business expansion. Kabbage developed a consumer product called Karrot,

which lends to individuals and start-up companies. “We launched Karrot in less than 60 days from decision to go-live, which is a testament to the power of our platform,” says Petralia. “Thanks to FICO Origination Solutions, we could quickly build and implement a new model, and that speed compressed the project timeline. Overall, we’ve increased our revenue by 300% in the last 12 months, and we could not have achieved that growth without help from Origination Solutions to automate and manage our processes.”

• True partnership. Kabbage knows it has found a valuable partner in FICO. “At Kabbage, it’s our business to make decisions — we make them when we acquire new customers and as we lend to those customers on an ongoing basis,” says Petralia. “We can continue to develop new models and move into new markets with confidence knowing we have a strong partner like FICO to help us accomplish our goals.”

To learn more about FICO’s origination solutions, go to:

www.fico.com/small-business-

originations

ORIGINATION Data-Driven Lender Replaces Unmanageable Decisioning Technology with FICO® Origination Solutions

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© 2019 Fair Isaac Corporation. All rights reserved. 21© 2015 Fair Isaac Corporation. All rights reserved. 1

Enhancing Decision-Making Speed to Better Serve a Changing Marketplace• VTB24 processes cash loans in less

than 5 minutes versus the 20 minutes it took for each loan before

• The bank processes 3,500 applications per hour among its 1,000 sales locations, and it has reduced approval times by 50%

• Modifying its decision strategies to reflect the changing Russian marketplace takes significantly less time now. Quickly refining its credit procedures and models helps VTB24 retain and improve market share

Russian Retail Bank Increases Agility, Cuts Approval

Times Using FICO® Origination Manager

Client: The second-largest retail bank in Russia, VTB24 specializes in serving individuals, private entrepreneurs and small businesses. It offers retail, mortgage and automobile lending as well as other financial services.

Challenge: VTB24 needed a more flexible system to determine customer credit approvals. The bank wanted an adaptable solution that could scale to meet the needs of the growing Russian market.

Solution: FICO® Origination Manager

Results: VTB24 analysts quickly modify the new FICO solution themselves — without IT coding assistance — to adjust to ongoing market changes. The bank has significantly reduced loan approval times, making it easier to retain and improve its market share.

The financial services industry faces major challenges, from electronic banking complexities to security and privacy concerns. Those difficulties are amplified when conducting business in developing economies, as is the case for VTB24, Russia’s second-largest retail bank.

“Russia has a growing market, so we have to expand our sales year-over-year just to maintain the same market share,” says Oxana Staroselskaya, Head of

ORIGINATIONRussian Retail Bank Increases Agility, Cuts Approval Times Using FICO® Origination Manager

“We chose FICO Origination Manager based on price, functionality, productivity, longevity and reputation.”Oxana Staroselskaya, Head of Credit Risk Methodology, VTB24

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FICO is a trademark or registered trademark of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2015 Fair Isaac Corporation. All rights reserved. 4108CS_EN 06/15 PDF

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Credit Risk Methodology at VTB24. “For example, to increase market share by 1% next year, we have to boost sales by more than 15%. That means we need smarter ways to work.”

Rethinking LendingThe system that supported the bank’s lending decisions couldn’t handle the volume of business VTB24 needed to accommodate. “It took 20 minutes to get a lending decision, and the system would only get slower as our volume rose,” says Staroselskaya. “We estimated it would soon take up to 40 minutes to process decision data, so we had to act.”

Along with its productivity concerns, VTB24 faced limitations when trying to modify its system. “We needed to quickly refine our financial models in response to rapidly changing economic conditions so that our decisions reflected real-world scenarios,” says Staroselskaya.

The bank was also under pressure to find ways to increase approval rates without increasing losses, but the lack of credit history in Russia made that a risky endeavor. VTB24 decided to base its decisions on client-provided data and its own internal numbers.

Finding the Right SolutionVTB24 evaluated the options for supporting its lending lifecycle. “We chose FICO Origination Manager based on price, functionality, productivity,

longevity and reputation,” says Staroselskaya. The bank has two Origination Manager modules. It uses the Application Processing Module to integrate with 10 internal and external systems, to optimize decision-making calculations and performance, and as an underwriter workplace, with 8 user interfaces. VTB24 analysts rely on the Decision Module to manage business rules without the need for IT coding. “The Decision Module works like a brain for our credit conveyor — we have more than 50 rule sets inside it,” says Staroselskaya.

The FICO implementation team helped VTB24 quickly deploy FICO® Origination Manager; the Decision Module took one month and the Application Processing Module less than two. The bank implemented pre-approved credit card and cash loan strategies, creating synergy between them and Origination Manager. Working with FICO, VTB24 also developed scorecards that enhance the bank’s analytics capabilities.

Improving Processing for Faster DecisionsNow that it uses Origination Manager, VTB24 can move at the pace of business as it never has before. It experiences benefits including:

• Faster decisions. Today, VTB24 processes cash loans in less than 5 minutes, a huge improvement from the 20 minutes that each used to take. “We can process 3,500 applications per hour among our 1,000 sales locations,” says Staroselskaya. “We’ve also seen a 50% reduction in approval times.”

• Flexibility. VTB24 now adjusts its decision strategies to reflect the changing Russian marketplace. “To retain and improve our market share, it’s critical for us to be able to quickly refine our credit procedures and models,” says Staroselskaya. “Our risk management team can make changes to the Decision Module in less than a month, and our FICO implementation team can change the Application Processing Module in less than three. Those impressive timeframes are hugely important to us.”

• Reliable, knowledgeable partnership. VTB24 is pleased with the support it received from FICO during the implementation. “We’ve been so happy with the FICO implementation team and its awareness of the market and of our specific situation,” says Staroselskaya. “Even when we changed our requirements during the implementation phase, the team created workarounds to meet them.”

To learn more about FICO’s origination solutions, go to:

www.fico.com/originations

ORIGINATION Russian Retail Bank Increases Agility, Cuts Approval Times Using FICO® Origination Manager

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Customer Credit Lifecycle

© 2019 Fair Isaac Corporation. All rights reserved. 23

FICO & VTB24 - Agile Technology in Loan Originations

FICO & VTB24 Russian Bank Customer Testimonial

Watch the success story video

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© 2019 Fair Isaac Corporation. All rights reserved. 24© 2016 Fair Isaac Corporation. All rights reserved.

Improved Origination Scores Drive Better Risk Management• Ascentium observed a 10.6% lift in

predictive power when using FICO® Small Business Scoring ServiceSM Version 7

• Scores use recession-period data to provide a better picture of overall company health and resilience

Ascentium Makes Better Small Business Lending

Decisions Thanks to Upgraded FICO Solution

Client: Small business lender Ascentium Capital works with a variety of industries including medical, trucking, construction, and hotel and restaurant franchises. Ascentium was founded in 2011.

Challenge: Ascentium wanted to expand its growing portfolio, keep risk in check and continue to provide fast lending decisions to its customers.

Solution: FICO® Small Business Scoring ServiceSM Version 7

Results: Ascentium has grown its portfolio to $1.2 billion in assets, is identifying more customers inside its risk profile, and is meeting its goal to deliver lending decisions to customers in two hours or less.

Ascentium Capital is a small business lender that focuses on helping business owners raise capital for the equipment and technology they need to start or expand their firms. What makes Ascentium stand out from similar lenders is the speed at which it can make decisions. “Our basic premise is that we can make a smart decision within two hours, though on average we do it in an hour.

ORIGINATIONSAscentium Makes Better Small Business Lending Decisions Thanks to Upgraded FICO Solution

“ If we only picked easy decisions with the strongest credit scores, we’d miss out on a lot of business. We really need a product that can give us a meaningful score for businesses in the middle range.”Chris Miller Vice President of Decision Analytics Ascentium

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© 2019 Fair Isaac Corporation. All rights reserved. 25

FICO, Small Business Scoring Service and SBSS are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2016 Fair Isaac Corporation. All rights reserved. 4309CS_EN 10/16 PDF

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ASIA PACIFIC +65 6422 7700 [email protected]

ORIGINATIONSAscentium Makes Better Small Business Lending Decisions Thanks to Upgraded FICO Solution

And we do that using just a simple application form — no need for detailed financial documents on over 90% of the transactions — so there’s a minimal burden on the applicant,” says Chris Miller, Vice President of Decision Analytics at Ascentium. “We work on providing intelligent, automated decisions.”

From the start, Ascentium has used FICO® Small Business Scoring ServiceSM (SBSSSM) as part of its decisioning process. The firm’s founders had used the solution at prior companies; they trusted its accuracy and reliability, and the way it blends consumer and business credit information to calculate an appropriate risk score for a new small business. “When we look at a new or young business, sometimes there is more information available about the people involved than about the business itself because it hasn’t been around very long,” explains Miller. “SBSS takes this into account by looking into the background of the business principals to provide us with a score that we can easily tailor to our business needs.”

A New Version for Even Stronger ScoresStarting in 2014, Ascentium began to consider upgrading from SBSS 6 to SBSS 7 as the firm went through the process of rewriting the code for its proprietary decisioning system to make it more supportable and scalable. The key difference Ascentium found between the two versions is the new data sources available that improve predictive power. SBSS scores

are based on an analysis of millions of actual small business applications, and can combine data sources such as financial statement data and business repository data into one score. SBSS 7 uses a dataset that includes the recent period of serious economic recession, so it is better able to predict which businesses are likely to make it through tough times and which are likely to struggle.

Ascentium did extensive testing before committing to the upgrade, running comparisons of the scores generated by SBSS 6 and SBSS 7 for actual customers. “Given our particular niche in the industry, we need to have some flexibility and nuance in our decision-making. If we only picked easy decisions with the strongest credit scores, we’d miss out on a lot of business. We really need a product that can give us a meaningful score for businesses in the middle range,” says Miller. “SBSS 6 provided a good score, but for our particular customer base, SBSS 7 provides a great score. It gives us a more accurate picture of the overall health of the business and helps us make those tougher decisions.”

Better Risk Management from a Powerful ProductThe improved ability to make decisions is reflected in the data Ascentium has compiled since its upgrade project was completed. The company now identifies 10.6% more bad risk with SBSS 7 than it did with SBSS 6, while still maintaining the same volume of good risk.

In just five years, Ascentium has grown from a new business to one with more than $1.2 billion in assets, and FICO® products have been there to help facilitate that expansion. “Technology is at the heart of our business, so a reliable infrastructure is crucial,” says Miller. “We pull from a lot of data sources and if there’s an outage, it can paralyze us as a company. With FICO, that’s never been a problem. An essential key to our growth is having the best origination solutions available, and SBSS 7 is a very important part of that.”

To learn more about how

you can make better small

business lending decisions,

visit fico.com/small-

business-originations.

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© 2019 Fair Isaac Corporation. All rights reserved. 26

Harborstone Credit Union

© 2016 Fair Isaac Corporation. All rights reserved. 1

Faster loan decisions help boost business• Harborstone cut decision-making time

for small business loans from days or weeks to minutes or hours.

• There have been zero delinquencies on loans under $50,000 based on SBSS decision-making since deployment 2 years ago.

• Small business loan volume has increased 250%, with no delinquencies, and Harborstone expects that number to rise.

• Harborstone merged its FICO small business loan solution seamlessly with its existing consumer loan solution, making it easy for employees to use.

Harborstone Credit Union Slashes Business Loan

Processing Time with FICO Solution

Client: Harborstone Credit Union is a member-owned, not-for-profit organization that has offered financial services with a personal touch for more than 60 years.

Challenge: The credit union wanted to streamline a small business loan processing workflow and accelerate its time to completion from a few weeks to a few hours.

Solution: FICO® Small Business Scoring ServiceSM

Results: Harborstone Credit Union increased its small business loan volume by more than 250%, and added new sales and service opportunities for business members.

Based in Tacoma, Washington, Harborstone Credit Union operates 16 branches across the region and serves anyone who lives or works in the state of Washington. Harborstone’s 247 employees currently handle more than 75,000 accounts.

ORIGINATION Harborstone Credit Union Slashes Business Loan Processing Time with FICO® Solution

“FICO Small Business Scoring Service has worked flawlessly for us.”Jeff Ivey, Senior Vice President and Chief Sales and Service Officer, Harborstone Credit Union

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© 2019 Fair Isaac Corporation. All rights reserved. 27

FICO, Small Business Scoring Service and SBSS are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2016 Fair Isaac Corporation. All rights reserved. 4249CS_EN 06/16 PDF

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ORIGINATIONHarborstone Credit Union Slashes Business Loan Processing Time with FICO® Solution

In a competitive industry, Harborstone stands out from its peers through its dedication to the small business market. “We’ve had a small business program for the last 20 years, and not all credit unions get into that field,” explains Jeff Ivey, Senior Vice President and Chief Sales and Service Officer at Harborstone Credit Union. “It’s one of our strategic and competitive advantages.”

To maintain that advantage, Harborstone decided to modernize its small business loan processing workflow. Employees handled everything manually, and all loans went through the same process, whether they were for $50,000 or $5 million.

“It just wasn’t an efficient way to work, especially on smaller loans,” says Ivey. “We saw tremendous potential for growth in the small business market, but we needed an automated solution that would enable us to make optimal decisions much more quickly.”

Finding the Right Solution

Harborstone sought the advice of its small business loan vendor, who recommended FICO® Small Business Scoring ServiceSM (SBSS). The solution allows organizations to use different combinations of data to evaluate the credit risk of a small business and generate a score that is matched against a threshold to determine whether to approve a loan. Harborstone had two key criteria: The new small business loan system needed to work smoothly with its existing consumer loan system, and be easy for frontline staff in the branches to use.

The credit union solicited the opinions of other SBSS customers and received extremely positive responses. “We got great feedback and what really locked it up for us was learning that the Small Business Administration (SBA) uses a version of SBSS as part of its screening process,” says Ivey. “We figured that if it works for SBA, it should work for us, too!”

Collaborating with FICO consultants, Harborstone deployed SBSS and customized the credit union’s existing consumer loan interface to make it straightforward for branch staff and others to use both systems. “Obviously they enter slightly different information for business loans, but the way they enter it is virtually identical. FICO Small Business Scoring Service has worked flawlessly for us — we haven’t experienced a single serious technical issue,” says Ivey.

Faster Decisions and Growth Opportunities

Harborstone started out deploying SBSS

to automate decisions for loans under $50,000, with excellent results. “We’ve taken a process that could stretch on for weeks and transformed it into one that gives us a result in just a few minutes,” explains Ivey. “By taking time up front to choose a good threshold score and other requirements, we’ve ended up with no delinquencies on any of the loans in that range — and the time savings has made it a very profitable part of our portfolio.”

Overall, the credit union has increased its small business loan volume by more than 250%, and it has introduced

efficiencies that will drive that number even higher. Based on this success, Harborstone plans to expand its use of SBSS. “Right now we have a turnaround time of minutes on loans under $50,000 and a couple hours on loans between $50,000 and $100,000,” says Ivey. “Some institutions we’ve spoken with have been automating loans up to $100,000 for even faster decision-making, and I think we’ll do that as well. For loans over $100,000, SBSS serves as a useful initial screening tool.”

To learn more about FICO’s

small business origination

solutions, go to: fico.com/

small-business-originations.

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© 2019 Fair Isaac Corporation. All rights reserved. 28

Customer Management

Unicre ..................................................................................................................29Better risk control helps Portuguese card issuer stay on top

ICICI .....................................................................................................................31Agressive credit card growth pays off for top Indian bank

Customer management........................................................................................33Customer success with FICO® Deposit Solutions

Customer Credit Lifecycle

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© 2019 Fair Isaac Corporation. All rights reserved. 29

Unicre

© 2015 Fair Isaac Corporation. All rights reserved. 1

Better risk control helps Portuguese

card issuer stay on top

UNICRE is Portugal’s largest card acquirer and one of its top credit card issuers

Challenge: Grow revenue and stay competitive despite deregulation of the banking industry and changing economic conditions

Solution: FICO® TRIAD® Customer Manager

Results: Increased balances by 10% and lowered 3-cycle delinquencies by 30% in the first year alone; improved customer service and operational efficiencies.

Portuguese credit card issuer UNICRE has faced an onslaught of challenges in the past two decades, from banking deregulation to an economic slowdown. FICO® TRIAD® Customer Manager has helped it confront these challenges head on — and remain a significant player in the Portuguese card industry.

UNICRE selected the TRIAD Customer Manager system to automate its customer management of credit lines and collections. Within the first year of implementation, the system helped UNICRE improve risk control, grow revenue, and increase operational efficiencies and customer service.

CUSTOMER MANAGEMENTBetter risk control helps Portuguese card issuer stay on top

“During these past years, when economic conditions in Portugal have shown slow growth, the TRIAD system has allowed us to minimize losses and increase our business revenues.”Felismina Pinto, Deputy Manager, UNICRE

Increased balancesby 10%

Reduced 3-cycledelinquencies

by 30%

Improvedcustomer service

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© 2019 Fair Isaac Corporation. All rights reserved. 30

FICO and TRIAD are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2015 Fair Isaac Corporation. All rights reserved. 4121CS_EN 05/15 PDF

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ASIA PACIFIC +65 6422 7700 [email protected]

Strong initial results“We contacted several international companies, and FICO was strongly recommended for its products, quality and support,” says Felismina Pinto, UNICRE’s deputy manager. “During the years we have worked together, we were able to reaffirm FICO’s superior performance and experience in this business.”

UNICRE implemented FICO® TRIAD® Customer Manager on a portfolio of 250,000 customers. Although this represented a smaller portfolio size than the typical TRIAD client, UNICRE still saw strong results — for instance, a 10% increase in balances and 30% lower 3-cycle delinquencies in the first year.

“The TRIAD system provided us with innumerable advantages and helped us increase operational efficiencies,” adds Pinto. “TRIAD flexibility and logic are the main factors that led to our improved risk control and customer service.”

Flexibility was a critical benefit with the TRIAD system. UNICRE could design strategies to meet specific objectives, and adapt these strategies as economic and business conditions changed. TRIAD Customer Manager also allowed UNICRE to clearly communicate these new policies and policy changes to customers.

“With the TRIAD system, we now have a consistent, systematic and coherent communication policy, with a positive impact on the quality of service we provide our customers,” says Pinto. “For instance, we were able to design

a strategy regarding charges related to payment delays and then communicate it to customers. The system also allowed us to develop a personalized credit limit strategy, and forward tailored letters, statement messages and emails regarding the policy.”

Staying competitive despite changeThe past few years have brought a slowdown of the Portuguese economy — and thus, new challenges for UNICRE to stay competitive.

“During these past years, when economic conditions in Portugal have shown slow growth, the TRIAD system has allowed us to minimize losses and increase our business revenues,” says Pinto. “We were able to do this by always controlling

risk while adjusting our credit line and collections strategies.”

Despite the fluctuations in the Portuguese economy and banking industry, UNICRE remains the leading acquirer and one of the top card issuers in Portugal. The company plans to expand its reach by introducing other types of credit products, always bearing in mind its goal of innovation.

“The TRIAD system has helped UNICRE adapt to changing economic conditions, allowing us to perform readjustments according to company goals and objectives,” says Pinto. “We can respond quickly to whatever challenges come our way — and that’s tremendously beneficial.”

CUSTOMER MANAGEMENTBetter risk control helps Portuguese card issuer stay on top

MONTH

0 2 4 6 8 10 12

REPA

YMEN

T O

DDS

15%

10%

5%

0%

-5%

FICO® TRIAD® Customer ManagerNon-TRIAD

FICO® TRIAD® Customer Manager strategy yields 10% balance increase at UNICRE

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© 2019 Fair Isaac Corporation. All rights reserved. 31

ICICI

© 2015 Fair Isaac Corporation. All rights reserved. 1

Aggressive credit card growth pays off

for top Indian bank

Challenge: Manage aggressive growth in credit cards in the face of increasing foreign and local competition

Solution: FICO® TRIAD® Customer Manager and FICO origination scoring

Results: After 12 months of the TRIAD system on classic card portfolio, 6.5% more total accounts and 15.7% higher balances than control group

Managing business change in India, one of the world’s fastest growing economies, is no small feat. This is particularly true in India’s credit card market, which grew by nearly 40% over the course of a year.

ICICI Bank has embraced this change by using decision technology to drive aggressive growth in its credit card portfolios. As India’s second-largest bank, ICICI Bank has quickly become one of the country’s top card issuers since launching its first credit card in 2000.

“We thrive on change. It’s part of our culture; our staff appreciates it and contributes to it,” says Maninder Juneja, risk head of Retail Products at ICICI Bank. “We need technology that supports this. FICO TRIAD Customer Manager has more than fit the bill in terms of managing the dynamic growth in our credit card business.”

CUSTOMER MANAGEMENT

“Whatever we do, we can measure it, run analysis and devise better strategies. We have the ‘strings’ to maneuver strategies easily and gain an understanding from an overall perspective.”— Maninder Juneja, ICICI Bank

Total Accounts

6.5%

Balance

15.7%

Average Balance

9.5%

Average Merchant Sales

8.3%

Average Cash Sales

19.7%

Average Credit Line

8.3%

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© 2019 Fair Isaac Corporation. All rights reserved. 32

FICO, TRIAD and Falcon are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2015 Fair Isaac Corporation. All rights reserved. 4112CS_EN 04/15 PDF

NORTH AMERICA +1 888 342 6336 [email protected]

FOR MORE INFORMATION www.fico.com www.fico.com/en/blogs

LATIN AMERICA & CARIBBEAN +55 11 5189 8267 [email protected]

EUROPE, MIDDLE EAST & AFRICA +44 (0) 207 940 8718 [email protected]

ASIA PACIFIC +65 6422 7700 [email protected]

Indeed, after 12 months using the FICO®

TRIAD® system on its classic card portfolio, the bank can directly attribute a 6.5% increase in total accounts and 15.7% increase in balances to TRIAD Customer Manager functionality. Despite rising international and local competition, the bank has seen 16% overall portfolio growth during this time due to TRIAD Customer Manager and other factors.

A strategy for growthWhen ICICI Bank launched its first credit card, it did so using FICO origination scoring models.

“We are a large player in India so we wanted to be associated with the best in the analytics business,” explains Juneja. “Our scorecards give us a lot of flexibility, whether it’s controlling loss levels and approval rates, or determining the type of customers to target.”

While the scorecards were in development, ICICI Bank began considering the use of the TRIAD system. Card volume was manageable at the time, but it was growing quickly—doubling four to five times in a single year. The bank knew volume would soon reach a point where it could no longer be managed manually.

Juneja explains what sealed the deal. “Other TRIAD Customer Manager clients gave us good feedback on the system’s profitability and payback period. We felt a product that was running in so many banks with multi-million cards would provide rich experience for us in the long term.”

Expanding its card businessICICI Bank wanted one system to manage its entire credit card business and chose several TRIAD Customer Manager decision areas, including Credit Facilities, Authorizations and Performance-based Pricing.

Before implementing FICO TRIAD Customer Manager, ICICI Bank offered all customers the same credit limit. The bank used TRIAD Credit Facilities to build aggressive line increase strategies that not only brought limits up to market average, but also increased limits even more for many low- and medium-risk customers. This helped the bank stay competitive, despite many international and local competitors trying to take advantage of India’s credit card market boom.

FICO TRIAD Customer Manager also enabled the bank to improve authorizations strategies and develop pricing according to risk. TRIAD Authorizations allowed for flexibility according to seasonality, transaction type and other factors. Through Performance-based Pricing, the bank was able to make offers that encouraged good customers to revolve or take out cash advances.

Through behavior risk scores, TRIAD Customer Manager allowed the bank to target the right customers for profitable growth. “Now we’re aggressive where we want to be with good customers,” says Juneja. “Our activation rate is better since we proactively increased credit lines, and good customer attrition rates are lower.”

Automation of strategies offered ICICI Bank significant savings in resources, and features allowing for controlled testing and refinement of strategies provided greater strategy control. “Whatever we do, we can measure it, run analysis and devise better strategies,” says Juneja. “We have the ‘strings’ to maneuver strategies easily and gain an understanding from an overall perspective.”

“FICO strategy consultants brought experience that was very, very rich,” adds Juneja. “We could leverage world-class global practices from the beginning. This gave us confidence. Now, we have the knowledge to build our own strategies.”

Planning for the futureIn the long run, ICICI Bank is planning how FICO TRIAD Customer Manager will support a shift toward managing at a customer level rather than a product level. The bank is also looking at FICO® Falcon® Fraud Manager to manage growing payment card fraud in India.

More immediately, ICICI Bank is implementing the TRIAD Collections decision area and hopes to expand its use of TRIAD Customer Manager to its large debit card business. Says Juneja, “Credit cards are our top priority, but we see opportunity for TRIAD to grow other parts of the business.”

For more information, go to:

www.fico.com

CUSTOMER MANAGEMENTAggressive credit card growth pays off for top Indian bank

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© 2019 Fair Isaac Corporation. All rights reserved. 33

Customer management

© 2019 Fair Isaac Corporation. All rights reserved. 1

CUSTOMER MANAGEMENTCustomer Success with FICO Deposit Solutions

Customer Success with FICO Deposit Solutions

With so many critical decisions to make and factors to consider—fee waivers, holds, pay/no-pay overdrafts, collections, regulatory compliance—it can be challenging to strike a profitable balance in deposit account management. With each decision, building customer satisfaction and loyalty needs to be weighed against risk of losses, as well as opportunities for revenue.

What deposit account managers need is the ability to gain deep and broad-based insight on customers, and to deliver profitable, consistent deposit-related decisions in real-time across all customer channels. The cases studies presented here show how four leading banks successfully improved their deposit management with FICO technology, and with FICO expertise.

BankingDeposit account management

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© 2019 Fair Isaac Corporation. All rights reserved. 34

CUSTOMER MANAGEMENTCustomer Success with FICO Deposit Solutions

© 2019 Fair Isaac Corporation. All rights reserved. 2

Deposit hold management

Stronger risk management

Streamline automation

Decision consistency

Regulatory compliance

Major US Bank Improves Customer Retention with

Deposit Management

The bank has significantly reduced hold rates and is now providing exceptional, consistent customer service, without increasing its operating loss.

Client: Major US bank with more than $550 billion in assets and $300 billion in domestic core deposits.

Challenge: Reduce unnecessary deposit holds and improve consistency of hold decisions in every branch and channel.

Results: Cut hold rates from 22% to less than 0.5%, improving customer service and stemming operating losses.

Without an automated, analytic approach to hold management, there were severe consequences for this major US bank. A sizable portion of the bank’s loss increases were rooted in their deposit management policies. With high hold rates, many of its highly valued customers were either not making deposits or closing accounts.

The bank quickly corrected the problem, relying on FICO’s direct deposit account-level behavior risk scores and the implementation of an automated decision platform that provided consistent holds determinations across all customer touchpoints. FICO developed behavior risk scores from the bank’s customer data, including time on books, related accounts and balances, current and average balance, overdraft history and customer profitability. An automated assessment made by the decision platform, based on the risk prediction of the account holder and individual deposit, determines what actions to take on the account. It is flexible enough to allow branches to override when necessary.

Today, the bank has reduced hold rates from more than 22% to less than 0.5%. FICO solutions are helping the bank provide exceptional, consistent customer service, without increasing its operating loss and while complying with Regulation CC’s hold length requirements. It has improved its hold management training across branches, extended and tailored the system for ATMs and mobile deposit channels as well.

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© 2019 Fair Isaac Corporation. All rights reserved. 35

CUSTOMER MANAGEMENTCustomer Success with FICO Deposit Solutions

© 2019 Fair Isaac Corporation. All rights reserved. 3

Risk-based hold management

Stronger risk management

Decision consistency

Regulatory compliance

Major US Bank Improves Hold Management Using

FICO® TRIAD® Customer Manager

The bank is continually improving hold decisions, and ensuring consistency in customer service.

Client: A major US bank with over $29 billion in assets and more than $19 billion in domestic core deposits.

Challenge: Automate hold decisions on deposits to: improve its efficiency ratio to 50%, increase depositor fees 10%–12% and lower operation losses.

Results: The bank achieved its goal, and cut its hold rate to 3%, while reducing branch hold overrides by 17%.

With an objective to proactively boost profitability, a leading US bank set specific goals for improving decisions on demand deposits, interest and non-interest bearing deposits, and its other short-term lending products. It wanted to automate its hold decisions on deposits to improve its efficiencyratio to better than 50%, increase depositor fees 10% to 12% and at least a 7.5% decrease in operational losses.

To meet its goals, the bank implemented FICO® TRIAD® Customer Manager, relying on the system to make better risk-based hold decisions, and automate the management of the hold length period working within Regulation CC requirements. The TRIAD platform enables the bank to safely and continually improve hold decisions with champion/challenger strategy testing, as well as ensure consistency in customer service.

The project successfully met its objectives. With greater confidence in hold decisions that are based on solid risk assessment, the bank has reduced its deposit hold rate to 3%, while its branches have reduced override rates by 17%. It is now also confidently maintaining decision consistency across geographically dispersed branches.

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© 2019 Fair Isaac Corporation. All rights reserved. 36

CUSTOMER MANAGEMENTCustomer Success with FICO Deposit Solutions

© 2019 Fair Isaac Corporation. All rights reserved. 4

Major Global Bank Increases Effectiveness and Efficiency of Its

Overdraft Management

TRIAD Champion/Challenger strategy testing enabled the bank to develop productive overdraft collections strategies, leading to reduced collections volumes, and efficiencies in collections operations.

Client: Major global bank with over $1 trillion in assets and more than $700 billion in domestic core deposits.

Challenge: Improve management and collections of delinquent overdrafts.

Results: Significantly reduced its overdraft collections volumes, and developed a more efficient collections operation.

A leading financial institution set out to restore the efficiency of its overdraft collections and reduce overdraft losses.

The bank deployed FICO® TRIAD® Customer Manager to reduce overdraft collections volumes and more effectively manage delinquent overdraft accounts. With a standard implementation that didn’t require customization, the bank quickly deployed the solution, utilizing TRIAD account management functionality and proprietary scoring models.

With TRIAD Customer Manager’s champion/challenger strategy testing capability, the bank was quickly able to develop and refine productive overdraft collections strategies. As a result, it met all of the identified financial and operational goals, reducing its collections volumes, and gaining efficiencies in its collections operations.

Overdraft management

Heightened Operational Efficiency

Collections Loss Reductions

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© 2019 Fair Isaac Corporation. All rights reserved. 37

FICO and TRIAD are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2019 Fair Isaac Corporation. All rights reserved. 3089CS_EN 01/19 PDF

NORTH AMERICA +1 888 342 6336 [email protected]

FOR MORE INFORMATION www.fico.com www.fico.com/blogs

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EUROPE, MIDDLE EAST & AFRICA +44 (0) 207 940 8718 [email protected]

ASIA PACIFIC +65 6422 7700 [email protected]

CUSTOMER MANAGEMENTCustomer Success with FICO Deposit Solutions

Better Overdraft Decisions Boost Revenue and Greater Customer

Satisfaction for Large US Bank

The analytic based, overdraft pay decisions, from the FICO solution, are consistent and clear to regulators.

Client: Large US bank with over $550 billion in assets and more than $300 billion in domestic core deposits.

Challenge: Inconsistent pay/no pay overdraft decisions were leading to significant losses and high operational costs.

Results: Overdraft pay rates rose from below 50% to 75%, consistent fee waiver decisions are driving greater revenue and satisfaction with its most valued customers.

A well-known financial institution was finding it increasingly difficult to consistently determine appropriate pay/no-pay decisions on overdrafts. Using only a judgmental-based decision process, overdraft losses and operational costs were on the rise.

The bank wasn’t able to monitor its waivers on fees. As a result, fee income from decisions to cover overdrafts was lower than it should have been. On the flip side, no-pay overdraft decisions on valuable, low-risk customers presented serious attrition potential.

To remedy the shortcomings of its overdraft practices, the bank turned to FICO. Using FICO behavior risk scores and other decision variables, the bank deployed an empirical, automated approach to its pay/no-pay decisions. Having determined shadow limits on an account-basis, the bank used the FICO solution to perform sound risk management of over-limit behavior, and deliver decisions in real-time. It began to base its fee waiver decisions on risk and profit criteria, which also could be delivered via the channel of customer choice.

In short time, both customer service and fee income improved. The bank increased its overdraft pay rates from below 50% to 75%. Simultaneously, it cut back significantly on fee waivers, driving up revenue, by identifying and targeting only the customers it deemed appropriate of a waiver. That also minimized fee waiver inconsistency, which improved customer satisfaction of the most valued customers. More so, on the regulatory front, with analytic, risk-based decisions its overdraft pay strategies are consistent and clear to auditors, in an era of increasing regulatory scrutiny.

Overdraft decision automation

Reduced Fee Waivers

Improved Service and Retention

Regulatory compliance

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Customer Credit Lifecycle

© 2019 Fair Isaac Corporation. All rights reserved. 38

Thames Water ......................................................................................................39Tailored communication strategies boost collections and customer satisfaction

Thames Water Customer Testimonial ..................................................................41

Trustmark ............................................................................................................42Trustmark speeds collection and recovery operations with a single streamlined platform

Trustmark Customer Testimonial .........................................................................45

Phillips & Cohen ...................................................................................................46Phillips & Cohen manages global growth while preserving a compassionate approach to estate debt collection with FICO® Solution

Phillips & Cohen Customer Testimonial ...............................................................48

Cabot Credit Management ...................................................................................49Cabot Credit Mangagement boosts efficiency and customer satisfaction with FICO® Debt ManagerTM Solution

FICO & Cabot Credit Management Customer Testimonial ....................................51

State of Maryland ................................................................................................52State of Maryland makes debt collection efficient and productive with FICO® Solution

State of Maryland Customer Testimonial .............................................................54

Shelby County ......................................................................................................55Analytics ramp up government collections success

NAB .....................................................................................................................58Putting customers first to improve collections results

NAB Customer Testimonial ..................................................................................60

Retail Finance Leader ...........................................................................................61Retail finance leader drives better results with smart, automated and compliant collections

FICO & China Guangfa Bank Customer Testimonial .............................................63China Guangfa Bank automates collections communications and improved repayment from 50 million customers

Metrobank Card Customer Testimonial ............................................................... 64Metrobank Card automates collections communication efforts to improve staff engagement in addition to customer experiences

Collection and Recovery

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© 2019 Fair Isaac Corporation. All rights reserved. 39© 2019 Fair Isaac Corporation. All rights reserved. 11

Taking a more customer-centric approach to collections• Customers are segmented according

to likelihood to pay and handled accordingly

• Customers receive contacts via their preferred communication method

• Bad debt charge has dropped from 3.6% to 2.9%

• FICO knowledge supports ongoing collections strategy improvement

Thames Water reduces bad debt

by understanding customers better

and tailoring communications

Client: Thames Water Utilities Limited is the largest water company in the UK.

Challenge: Thames Water needed to improve collections processes and reduce bad debts by better understanding its customers.

Solution: FICO® Debt Manager™ Solution and FICO® Customer Communication Services

Results: A nearly 20% decrease in bad debt charge and £50 million in annual savings.

Thames Water is the largest water company in the UK, with nearly 15 million business and residential customers in London and the Thames Valley. However, being the biggest player in the industry doesn’t mean Thames Water is content to rest on its laurels. “In 2014, we set really ambitious targets about where we wanted to be in terms of collections,” says Ross Betts, Collections Systems Strategy & Segmentation Manager at Thames Water. “We have a debt book of around £400 million per year, and debt recovery was one of our biggest challenges.”

COMMUNICATION | DEBT MANAGEMENT

“ Our FICO solutions help us communicate with customers efficiently, effectively and via the method they prefer.” Ross Betts, Collections Systems, Strategy & Segmentation Manager, Thames Water Utilities Limited

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© 2019 Fair Isaac Corporation. All rights reserved. 40

FICO and Debt Manager are trademarks or registered trademarks of Fair Isaac Corporation in the United States and other countries. Other product and company names herein may be trademarks of their respective owners. © 2019 Fair Isaac Corporation. All rights reserved. 4651CS_EN 1/19 PDF

NORTH AMERICA+1 888 342 6336 [email protected]

FOR MORE INFORMATIONwww.fico.com www.fico.com/blogs

LATIN AMERICA & CARIBBEAN+55 11 5189 8267 [email protected]

EUROPE, MIDDLE EAST & AFRICA+44 (0) 207 940 8718 [email protected]

ASIA PACIFIC+65 6422 7700 [email protected]

COMMUNICATION | DEBT MANAGEMENTThames Water reduces bad debt by understanding

customers better and tailoring communications

This drive to improve collections took place against a backdrop of major industry changes. In April 2017, the UK deregulated the water industry, allowing non-residential consumers to choose their supplier on the retail market. This presented both opportunities and challenges for Thames Water, which now faced competition for existing customers and the chance to gain new ones.

In this deregulated environment, Thames Water felt that improving customer service would be a key driver for success, and collections was one area where the company saw room for improvement. “We had a one-size-fits-all approach, and our collections platform was geared that way,” says Betts. “Whether a customer simply forgot to pay a bill or was chronically delinquent due to financial hardship, we treated them the same. We decided that we needed a way to analyze customer segmentation data, identify different groups of customers and work out the best ways for handling them.”

The right solutions for the job

Thames Water approached FICO with a goal of increasing automation and completely transforming its collections platform and approach to customers. The company chose to deploy a combination of FICO® Debt Manager™ Solution and FICO® Customer

Communication Services. Right from the beginning, Thames Water was pleased with its choice.

“The beauty and synergy you get with using all FICO products is that you’ve got the support of the FICO team,” says Betts. “They helped us really understand how the products work together and how to get the best out of both of them.”

Thames Water now uses its FICO solutions to build up customer profiles and segment customers depending on their likelihood to pay, and it then contacts customers based on their chosen communication preferences. “Once we’ve made initial contact with the customer — whether it be through text message or interactive voice messaging — we put that data back into Debt Manager to understand what action we should take next.”

The best approach for every customer

Thames Water appreciates the flexibility it gets with Customer Communication Services to individualize customer contacts. “There are a lot of difficult conversations in the collections business, and we know that some customers would prefer to interact with an automated channel,” explains Betts. “But for our most vulnerable customers, we still assign live agents to have that discussion with them

and offer assistance. Our FICO solutions help us communicate with customers efficiently, effectively and via the method they prefer.”

This customer-centric approach to collections has paid off for Thames Water. When it launched its collections improvement project in 2014, the company’s debt charges were 3.6% of revenue, and it has cut that number down to 2.9% — equivalent to £50 million a year in savings. Adopting FICO solutions has been a winning situation for everyone involved.

“We’ve produced great benefits for the business, and we’ve taken pressure off our customers and collections agents,” says Betts. “Working with FICO laid the foundation for the success we’ve seen, and their understanding of the whole collections process has been very helpful in building better knowledge of our customers and improving our collections strategies.”

Visit our website to learn

how you can improve your

collections success.

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Customer Credit Lifecycle

© 2019 Fair Isaac Corporation. All rights reserved. 41

FICO & Thames Water | Keeping Out of Deep Water

with Customer-Centric Collections

Thames Water Customer Testimonial

Watch the success story video

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© 2019 Fair Isaac Corporation. All rights reserved. 42

Trustmark

© 2016 Fair Isaac Corporation. All rights reserved. 1

COLLECTION & RECOVERY Trustmark speeds collection and recovery

operations with a single streamlined platform

“Consumers want and need consistency, and putting all information into the same system has been very beneficial.”Terry Collins Head of Collections and Recovery Trustmark

Trustmark speeds collection and recovery

operations with a single streamlined platform

Client: Trustmark, a regional financial services institution with locations in a five-state footprint across the Southern US.

Challenge: Even though their existing recovery platform was performing well, the 20-year-old system used dated technology and no product enhancements were planned.The collection platform they were using was no longer supported.

Solution: FICO® Debt Manager™ solution

Results: Enhanced capabilities mean ongoing audit requests from regulators can be met in hours instead of days. Agents are more efficient and productive. Training time and cost have decreased.

A provider of diversified financial services since 1889, Trustmark has broadened its customer base over the years by expanding its product line as well as the services it provides. It remains focused on the evolving role of technology in meeting its goals, keeping a superior customer experience as a top priority.

Immediate gains after implementing FICO® Debt Manager™ solution:

Audit capability is greatly enhanced: access to data is fast and complete

Agents gain a 360º view of all information at both the consumer

and account levels

Working on a single platform to perform all collection and recovery activity saves time, increases agent

productivity and decreases training cost

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© 2019 Fair Isaac Corporation. All rights reserved. 43

COLLECTION & RECOVERY Trustmark speeds collection and recovery

operations with a single streamlined platform

© 2016 Fair Isaac Corporation. All rights reserved. 2

One of the concerns management heard from agents before transitioning to Debt Manager was that the system they were using wasn’t always able to post payments same-day, leading to duplicate outreach and frustrated customers. Not seeing the complete customer view meant agents made multiple efforts to collect many debts connected to one consumer, instead of one call to collect all debt. Responding to ongoing audit requests from regulators often took days, taking programmers off other mission-critical projects.

Their commitment to a superior customer experience and the recognition that internal complaints were trending upward led them to the decision to combine both collection and recovery on one streamlined platform. To achieve this, the bank chose FICO® Debt Manager™ solution.

Impacting bottom-line productivity, effectiveness and responsiveness

The advantages Debt Manager offers—including improved productivity,

increased effectiveness and greater responsiveness—strengthened the strategic segmentation Trustmark already had in place. Productivity was improved using a fully configurable user interface based on roles and industry requirements, state-of-the-art reports and analytics, efficient workflow, improved account management and an intuitive, positive user experience. Wary of new technology, system users new to the platform were able to get up and running quickly, using context-sensitive action/result codes, help menus, configurable screens and fast response times.

Increasing effectiveness

Because Debt Manager serves as a system of record, it comes with built-in accounting functionality that tracks and manages receivables in real time. It simplifies compliance, using pop-up messages to alert agents to ever-changing regulations. Audit capability logs record all user actions. Streamlined payment arrangements—including multiple payment plans for accounts,

settlement plans with authorization procedures, loan rehabilitation and configurable convenience fees—make payments easier and faster. Analytics further refine and sharpen segmentation.

Driving responsiveness

A true service-oriented architecture facilitates data exchange and upgrades, and allows for a high volume of requests with sub-second response times. This is the essence of Debt Manager. Data is protected with ironclad security, at rest and in transit, using a 256-bit encryption layer for added protection. Sensitive data can be masked and displayed only to specified users with required authorization. Robust audit trails containing historical logs of accurate, complete and up-to-date information are always available. The platform includes a comprehensive compliance framework.

“We saw considerable time savings shortly after implementing Debt Manager,” says Terry Collins, Head of Collection and Recovery for Trustmark. “Before the implementation, when we

“Our agents were reluctant to let go of what they knew, yet I’m hearing comments that indicate they like the way it looks and are seeing the benefits.” Terry Collins Head of Collections and Recovery Trustmark

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© 2019 Fair Isaac Corporation. All rights reserved. 44

NORTH AMERICA +1 888 342 6336 [email protected]

FOR MORE INFORMATION www.fico.com www.fico.com/blogs

LATIN AMERICA & CARIBBEAN +55 11 5189 8267 [email protected]

EUROPE, MIDDLE EAST & AFRICA +44 (0) 207 940 8718 [email protected]

ASIA PACIFIC +65 6422 7700 [email protected]

COLLECTION & RECOVERY Trustmark speeds collection and recovery

operations with a single streamlined platform

FICO and Debt Manager are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2016 Fair Isaac Corporation. All rights reserved. 4267CS_EN 07/16 PDF

received an audit request for a specific attribute, we manually tracked the cases with this information. Producing such a report typically took a few days. Because we’d migrated information from our legacy system into Debt Manager as part of the implementation, our most recent response to a request was handled differently. This time, we simply wrote a script, and had a compiled report in 15 minutes. We saved a couple of days and fulfilled the request ourselves. Very efficient!”

To learn more about how you

can become more productive

and effective while driving

responsiveness in your

collection and recovery

operations, visit us on the web at

www.fico.com/en/products/fico-debt-manager-solution.

Financial Services Agencies Government

Healthcare Retail Student Lending

FICO® Debt Manager™ 9

Early and Late Stage Collections Pre-Charge-Off Post-Charge-Off Debt Sales

Collections Activity Recovery Activity

First Party/Early Stage

Delinquency Calls

Third PartyCollectionServices

CreditReporting

PaymentProcessing

AttorneyNetwork Services

AccountNotification Skip Tracing

Debt Manager End-to-End Receivables Management Solution

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Customer Credit Lifecycle

© 2019 Fair Isaac Corporation. All rights reserved. 45

Trustmark Customer Testimonial

Watch the success story video

FICO & Trustmark | Optimizing the Debt Collection Process

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© 2019 Fair Isaac Corporation. All rights reserved. 46

Phillips & Cohen

© 2017 Fair Isaac Corporation. All rights reserved.

New Debt Management Solution Facilitates a Compassionate Approach to Global Business• Debt Manager can be adapted

to handle relevant information and regulations for multiple regions and countries.

• The interface is highly intuitive, so employees quickly become proficient without feeling intimidated.

• Because Debt Manager is easy to use, personnel can focus on human interactions rather than struggling with technology.

• Phillips & Cohen built a strong two-way partnership with responsive and informative FICO staff.

Phillips & Cohen Manages Global Growth While

Preserving a Compassionate Approach to Estate

Debt Collection with FICO Solution

Client: Probate estate management specialists Phillips & Cohen Associates has offices in the United States, Canada, the United Kingdom and Australia, with plans for additional international expansion.

Challenge: Legacy software systems weren’t as intuitive, flexible and scalable as needed, making them unable to accommodate the firm’s rapid growth.

Solution: FICO® Debt Manager™ Solution

Results: Phillips & Cohen now uses an estate collections solution that adapts to interpret growing amounts of available probate information, is easy to use and facilitates compassionate interactions with clients and consumers.

For 18 years, Phillips & Cohen Associates has specialized in probate estate management for large financial institutions. When an institution’s customer passes away, the experts at Phillips and Cohen walk administrators through the probate process. Although it is fundamentally a legal and financial process,

DEBT MANAGEMENTPhillips & Cohen Manages Global Growth While Preserving a Compassionate

Approach to Estate Debt Collection with FICO Solution

“ It’s apparent that FICO really does care, not just about our business but also about our people.”Adam Cohen, Chief Executive Officer, Phillips & Cohen Associates

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© 2019 Fair Isaac Corporation. All rights reserved. 47

FICO® and Debt Manager are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2017 Fair Isaac Corporation. All rights reserved. 4336CS_EN 02/17 PDF

NORTH AMERICA +1 888 342 6336 [email protected]

FOR MORE INFORMATION www.fico.com www.fico.com/blogs

LATIN AMERICA & CARIBBEAN +55 11 5189 8267 [email protected]

EUROPE, MIDDLE EAST & AFRICA +44 (0) 207 940 8718 [email protected]

ASIA PACIFIC +65 6422 7700 [email protected]

DEBT MANAGEMENTPhillips & Cohen Manages Global Growth While Preserving a Compassionate

Approach to Estate Debt Collection with FICO Solution

Phillips & Cohen emphasizes the human side of the transaction. “One of the areas we focus on with potential clients is a compassionate approach to customer interactions,” says Adam Cohen, Chief Executive Officer at Phillips & Cohen. “We’re a bit of a niche industry within the estate management world, and what we bring to our clients and their customers is a thorough understanding of the relevant responsibilities and regulations. Most people don’t have probate experience, so we are able to bring that knowledge along with a deep respect for the human relationships involved to make sure the process is as easy as possible for our clients and their customers. We are very open and transparent, and we want to create the best outcome on both sides.”

A Flexible, Intuitive SolutionTo streamline its applications and facilitate those important conversations, Phillips & Cohen incorporated FICO® Debt Manager™ solution into its software stack for collections activities related to estate management. “The solution is extremely adaptable and intuitive, and the learning curve is relatively short,” says Cohen. “We’ve seen many different software applications over the years, and this one feels like it’s ours ― it doesn’t feel like an off-the-shelf product at all.”An important task for Phillips & Cohen is the compilation of vast amounts of information involved in the probate

process. This includes data from clients and many other sources, including the 4,000 probate registries across the United States for US-based estates. The company gathers the information, creates an index and makes it available for flexible queries that may involve any number of fields, tags or other designations. “One of the most important things for us is to be able to tell large financial institutions that we can take their portfolios and data in whatever format it exists, incorporate it into our systems and then provide daily reporting with whatever frequency and nuance our clients want,” says Cohen. “With Debt Manager, we have the ability to do that with no problem.”

Technology Facilitates the Human TouchAs the company has expanded, employees began to push the functional limits of the firm’s legacy software applications. “We recognized that from a scalability perspective, we needed to take things to a new level,” says Cohen. “We’ve always understood the importance of utilizing technology to help our employees do the best job they possibly can.” As an example, Cohen cites a situation that illustrates how important the human touch is in the work the firm does. “When we interact with individuals, it’s important that they understand that they’re more than just a name and a number on a screen,”

explains Cohen. “If our agents are dealing with an application interface that is overly complicated or unresponsive, they can lose sight of the active listening we want them to be doing during those conversations.” Beyond the software, Phillips & Cohen has found real value in the personnel at FICO. “The staff members we’ve dealt with have always been vested in our success,” says Cohen. “It’s apparent that FICO really does care, not just about our business but also about our people. They take our questions and concerns seriously, they’ve been great at knowledge transfer so we aren’t highly dependent on support, and we’ve had dialogue with them about our own best practices, so it really feels like a partnership.”

To streamline your own

collections management, visit:

http://www.fico.com/products/

fico-debt-manager-solution.

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Customer Credit Lifecycle

© 2019 Fair Isaac Corporation. All rights reserved. 48

FICO + Phillips & Cohen | Using Debt Manager in

Deceased Account Care Services

Phillips & Cohen Customer Testimonial

Watch the success story video

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© 2019 Fair Isaac Corporation. All rights reserved. 49

Cabot Credit Management

© 2016 Fair Isaac Corporation. All rights reserved.

A Single Debt Management Solution Drives Growth• Cabot rolled out a debt management

solution across three merged companies on an aggressive six-month schedule

• Multiple platforms and processes appear to employees as a single system, resulting in ease of use and a consistent experience

• The efficiency of the new system helps boost productivity, increase outgoing call volume and drive additional collections business

• Cabot customers have a unified experience across business units, boosting satisfaction and reducing negative feedback

Cabot Credit Management Boosts

Efficiency and Customer Satisfaction with

FICO® Debt Manager™ Solution

Client: Cabot Credit Management, headquartered in Kent, England, provides debt purchasing, contingency collections, business outsourcing and litigation services.

Challenge: Cabot needed a single debt management solution so it could streamline operations following a three-company merger.

Solution: FICO® Debt Manager™ solution

Results: Cabot implemented the debt management solution in six months and now has more efficient internal processes that drive increased business and higher customer satisfaction.

Cabot Credit Management is one of the United Kingdom’s leading credit management services, and one of the company’s key business areas is collecting debt purchased from banks, building societies and other financial

DEBT MANAGEMENTCabot Credit Management Boosts Efficiency and Customer

Satisfaction with FICO® Debt Manager™ Solution

“FICO Debt Manager has been an ideal solution for our business, and FICO has been a great partner every step of the way.”James Edwards, Enterprise Architect at Cabot Credit Management

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FICO and Debt Manager are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2016 Fair Isaac Corporation. All rights reserved. 4274CS_EN 09/16 PDF

NORTH AMERICA +1 888 342 6336 [email protected]

FOR MORE INFORMATION www.fico.com www.fico.com/blogs

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ASIA PACIFIC +65 6422 7700 [email protected]

DEBT MANAGEMENTCabot Credit Management Boosts Efficiency and Customer

Satisfaction with FICO® Debt Manager™ Solution

organizations. Cabot’s 1,500 employees manage approximately £1 billion in assets and collect an average of more than £45 million per month. The company distinguishes itself in the industry through its focus on ethical values and won awards in 2015 and 2016 for its commitment to treating customers fairly.

Cabot has grown significantly through mergers in recent years and currently operates offices in England, Ireland, France and Spain. In 2014, Cabot Financial merged with Apex Credit Management and Marlin Financial Services, and the new combined corporation found itself working with three different legacy debt management systems. “Each company had its own platform and its own processes, so everything was being done in three different ways,” explains James Edwards, Enterprise Architect for Cabot Credit Management.

Choosing a Single Solution

In order to streamline operations, Cabot was interested in consolidating on a single debt management solution, but the company was concerned that the switch might result in significant disruption to its day-to-day work. “Previous experience said it was going to be an 18-month or two-year project, which just wasn’t going to work,” says Edwards. “The view from our leadership was that if we couldn’t do it in six months, we’d have to pass on the opportunity. So the goal was to figure out how to complete the migration in six months.”

Marlin Financial had been using the FICO® Debt Manager™ solution successfully, so Cabot turned to FICO to learn whether the project could be done on such an aggressive timeline. “FICO very quickly got on board and embedded their personnel within our business,” says Edwards. “One of the best things about FICO is that they have a huge amount of experience in our industry — and not just as a vendor. They have people who have worked in the industry, and it was really helpful to leverage their expertise.”

It was an intense six months, but the team hit every milestone, and this led to a great feeling of achievement and pride that kept morale and motivation high. Once the migration was complete, Cabot was very satisfied with the solution it had put in place. “FICO Debt Manager is very flexible, extensible and configurable, so we are able to use it for a wide range of products and services,” says Edwards. “And as we diversify and look into new markets, FICO already has the expertise necessary to help us extend the solution onto other platforms — both those we develop internally and others we use when working with our partners. The integration layer in Debt Manager is very robust, and it makes a lot of different systems and processes work together like a single product.”

Greater Efficiency and Higher Satisfaction

This seamless integration and resulting ease of use is an important benefit for employees who use the system,

and customers benefit as well. “Now that our processes are standardized, customers have a much more consistent experience as they move from one part of our company to another, and that’s significantly reduced negative feedback,” says Edwards. “And the greater efficiency means we are able to handle more incoming queries and make more outgoing calls from our call center, so the time we save is reinvested into generating new business, which drives an upturn in collections. FICO Debt Manager has been an ideal solution for our business, and FICO has been a great partner every step of the way.”

For more information, visit:

http://www.fico.com/products/

fico-debt-manager-solution.

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FICO & Cabot | Transforming Legacy Systems into one First-class Platform

FICO & Cabot Credit Management Customer Testimonial

Watch the success story video

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© 2019 Fair Isaac Corporation. All rights reserved. 52

State of Maryland xxxx

© 2017 Fair Isaac Corporation. All rights reserved.

Redefining Collections for Improved Experience and Efficiency• Increased efficiency and elimination

of paper-intensive processes

• Personalized and self-serve options for debt repayment

• Ability to move staff to positions with greater productivity

State of Maryland Makes Debt Collection

Efficient and Productive with FICO Solution

Client: The Central Collection Unit (CCU) for the State of Maryland is responsible for collecting delinquent debt owed to state agencies.

Challenge: The CCU needed to replace a 30-year-old collections platform that was limiting growth, and take advantage of advanced technology to improve the collections experience for consumers by providing multi-channel self-serve options for repayment.

Solution: FICO® Debt Manager™ solution

Results: A configurable system that works in real time and integrates with other technologies to provide automated, convenient payment options for consumers while increasing collections revenue.

Maryland is one of the few states that has centralized delinquent account collection into a single department, processing a variety of debt types within one area. In 2015, the CCU was responsible for 2.7 million accounts and collected $140 million with a $13 million budget.

DEBT MANAGEMENTState of Maryland Makes Debt Collection Efficient and Productive with FICO Solution

“I had this vision we would be able to put the accounts on the right path going forward by how we collect, and we’re on our way to doing that.”Anthony Fugett, Director of the Central Collection Unit, State of Maryland

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© 2019 Fair Isaac Corporation. All rights reserved. 53

FICO and Debt Manager are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2017 Fair Isaac Corporation. All rights reserved. 4335CS_EN 01/17 PDF

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ASIA PACIFIC +65 6422 7700 [email protected]

DEBT MANAGEMENTState of Maryland Makes Debt Collection Efficient and Productive with FICO Solution

“It’s a very efficient way to get the job done, and I think other states are finding that’s the case as well,” says Anthony Fugett, Director of the Central Collection Unit.

When Fugett joined the CCU, he inherited a paper-intensive legacy collections system struggling to meet the demands associated with growing account volumes. The department wanted to take advantage of modern technology to become more efficient and improve the customer experience. “One way to do that is to learn more about the customer,” says Fugett. “For example, if I know you have wages or property in Maryland, I can use that information to create a payment plan that is affordable and appropriate for you. We also wanted to add more flexible self-serve repayment options, like email, voice, text and online payment portals to help get people on the right path and make the process more efficient for us.”

One area where the CCU has simplified the process is at the Department of Motor Vehicles (DMV). Consumers with delinquent state debt can’t register a car, but they can come to the DMV and set up a payment plan. The process is moving from manual and cumbersome to more streamlined and efficient, using an online system with electronic signatures at all 41 state DMV offices.

Greater Efficiencies Means Better Outcomes

Early on in their search for a new platform to collect debt, Fugett and his staff identified 4,000 requirements they

wanted their new software to package to support. A top priority was their interest in finding a commercial off-the-shelf product that could be easily configured to meet their ongoing needs, instead of requiring more costly customization. They chose FICO® Debt Manager™ solution.

The software is helping the unit redefine how it looks at the process of debt collection. “We want to come up with new ways of doing things that make our collectors more productive and profitable, and the Debt Manager software will enable that,” explains Fugett. “Right now our processes are more inbound, meaning that collectors deal with incoming calls about delinquent accounts. We’re putting electronic systems in place to handle those calls, and we’ll use Debt Manager solution to make our collection efforts more outbound, so collectors can focus on the rest of the accounts in the system.”

Improving the Customer and Agent Experience

Being a debt collector is challenging, and the CCU believes Debt Manager solution will make the job easier. “You have to walk a tightrope in terms of how you go about collecting delinquent accounts,” says Fugett. “You want to be a good partner to state agencies whose collections you’re managing, but you also want to be a good partner to citizens who owe money. So we’re working on making the user interface more interesting and the work less monotonous for collectors, so they can handle each call as if it’s fresh.”

The CCU is also building a dashboard system that will help identify how well collectors are performing, putting incentives in place to award successful activity. “Going forward, I’ll know how our business is doing on an hourly basis, and I’ll know what I need to adjust and how to adjust it,” says Fugett. “That will be very helpful for me, and being able to better offer meaningful and attainable incentives will be very helpful for my employees.”

By implementing Debt Manager solution, the CCU expects other business benefits as well, including moving about 20% of its staff from paper-intensive jobs to solving more complex cases. When it comes to the core task of account collections, the unit has set a goal of increasing revenue by 10% per year with the new solution.

To learn how FICO can

help you effectively collect

delinquent debt, visit:

www.fico.com/en/

products/fico-debt-

manager-solution.

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Customer Credit Lifecycle

© 2019 Fair Isaac Corporation. All rights reserved. 54

FICO & State of Maryland | Standardizing Debt Collection

at the State Level

State of Maryland Customer Testimonial

Watch the success story video

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Analytics ramp up government

collections success

Client: Office of Shelby County Trustee

Challenge: Improve collection techniques and make the most of their new technology

Solution: FICO® Consulting

Results: Collected $30.9 million in delinquent taxes, $2.9 million more than projected

Taking collections to the next levelAfter deploying new technology, nearly all organizations experience a significant lift in collections. The Office of Shelby County Trustee, Tennessee, is no exception. In 2014, 12 months after implementing the FICO® Debt Manager™ solution, total receivables collected rose by an overall 80 basis points. Still, “we knew there was a lot of capability in the system we weren’t utilizing,” says Debra Gates, the Chief Administrative Officer for the County Trustee. “We felt like our collections techniques needed some help, and even our collections philosophy.

DEBT MANAGEMENTAnalytics Ramp Up Government Collections Success

“We wanted to apply best practices from across industries to our environment. That’s what FICO Consulting brings to the table.”Debra Gates, Chief Administrative Officer, Office of the Shelby County Trustee

Working with FICO® Consulting to improve its collections strategies and test new techniques, the Office of the Shelby County Trustee:

Increased collected property taxes by 10% over the previous fiscal year

Improved results by focusing collection efforts on the most recent delinquencies first

Boost collectors’ job satisfaction by precisely quantifying success

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© 2019 Fair Isaac Corporation. All rights reserved. 56

DEBT MANAGEMENTAnalytics Ramp Up Government Collections Success

© 2015 Fair Isaac Corporation. All rights reserved. 2

We needed someone from outside the Office to review what we do and make it better.”

FICO® Consulting provided the expertise and external perspective that Gates and her team needed. She had been aware of the “next level” she could take her team to since the software was first implemented. “During the implementation, the focus is on going live and operating smoothly. We needed time to use the software in order to get it to function even better, and we knew our processes eventually would need to be reviewed,” says Gates.

“Our team lives in somewhat of a bubble when it comes to collection technology and techniques. Government collections are different than collections in the private sector, and each industry has its own techniques,” she continued. Shelby County, Tennessee (population 940,000, including the city of Memphis) is one of the few counties in the state that does its own tax collections; in other counties, delinquencies are turned over to the court system. “We wanted to apply best practices from across industries to our environment. That’s what FICO Consulting brings to the table,” Gates says.

A new collections methodologyFICO Consulting conducted an extensive analysis of Shelby County’s historic collections data, working on-site with Gates and her managers. Based on the research, a new strategy was recommended, which Shelby County implemented: to focus collections efforts on more current tax receivables instead of more severely delinquent accounts.

“’Last in, first collected’ was a different methodology for us,” Gates says. “We had traditionally concentrated on severely delinquent taxes on properties that were becoming tax-sale eligible. Our thinking had been that, given the urgency of potential property loss, those taxes were more likely to be paid.”

The analysis convinced Gates that collection rates on more recent delinquencies would be better. “We realized that collecting sooner, rather than later, would benefit taxpayers in two ways. First, it would help them to see the urgency and crisis of their situation, before it got out of hand with interest and penalties. Second, it would give the property owner a better opportunity to keep their house out of a tax sale.”

A dog-eared reportThe data provided by FICO Consulting became a critical resource for Shelby County. “It’s a dog-eared document,” says Bobby Stephenson, Director of Collections for the County Trustee. “We looked at it many times to mimic the queries our FICO consultant ran, to implement the strategy as outlined. Queries were implemented in Debt Manager 9, and settled on the four-month delinquency mark as the standard for the first round of collection efforts.”

The “last in, first collected” strategy worked. In the fiscal year ending June 30, 2015, Shelby County collected $2.9 million more in delinquent taxes than it had projected, for a total of $30.9 million. Of that amount, interest and penalty collections decreased by $173,000, a nominal offset to the large overall increase.

Communicating in new waysIn keeping with its new strategy to reach out to taxpayers earlier in the delinquency process, the Shelby County team realized it could communicate with taxpayers in a way that is far more immediate than a phone call or a letter: a text message to the taxpayer’s mobile phone.

Success with the approach caused the team to revisit text communications. Years prior, Stephenson conducted a small pilot program to test the efficacy of text messaging collection communications. Sent after a hardcopy notification letter but before any phone calling began, the brief text message contained a link to Shelby County’s payment site.

“The one thing that people don’t ignore is a message on their mobile phone,” Stephenson says. “The taxpayers receiving our message definitely saw it; for some people, it was the first time they became aware they were delinquent on taxes.”

During the pilot program Shelby County sent out several hundred text messages at a cost of $469. Over a single 11-day campaign the Trustee’s Office collected $315,301, for an ROI of 672%. The team plans to explore when and how to best use text message communications during the collections process.

Fostering team spiritWith half of Shelby County’s property taxes directly funding local education programs, the growth in collections has been well documented by area news media, raising awareness of the important work done by Gates, Stephenson and the rest of the collections team.

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DEBT MANAGEMENTAnalytics Ramp Up Government Collections Success

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Stephenson says, “Prior to implementing FICO analytics, our collectors didn’t have as much confidence that what they were collecting was being accounted for. Now, they’re much more confident in their numbers; the team’s goals and results are very real. Our results are more measurable and concrete, and our team has more ownership of what’s assigned to them. They enjoy healthy competition in the group and are excited by our wins.”

“You can’t stop growing”Gates sums up her experience with FICO® Consulting with a rhetorical

question: “Why did we get Debt Manager back in 2012? Because we knew we didn’t have the necessary tools to be the most effective at our job. Then we asked, what can we do to utilize that tool better and make our techniques better? FICO Consulting came, analyzed our data and gave us some very insightful strategic direction.

“Now, as we look to new technologies such as FICO® Customer Communication Services for collections to help us automate communications, it’s a natural progression in growing our capabilities. The rewards make it clear

that you’ve got to grow your technology, which helps you to grow your people, which fuels their efforts to improve what the team is trying to do. You can’t ever stop growing.”

Today’s business pressures demand that government agencies improve collections and recovery performance, and leaders are rising to the challenge. Not by adding headcount, but by refocusing current resources and multiplying their impact through analytics.

FICO and Debt Manager are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2015 Fair Isaac Corporation. All rights reserved. 4184CS_EN 12/15 PDF

To learn more, read “Successful Debt Collection for Government Agencies”

at www.fico.com/government-collection

and go to www.fico.com/government

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© 2019 Fair Isaac Corporation. All rights reserved. 581© 2019 Fair Isaac Corporation. All rights reserved. 1

Contact automation solution for collections drives customer satisfaction to new heights• Collections interactions tailored to

customer profiles lead to intelligent automation

• More convenient interactions for early-stage collections improves results and reduces costs

• Customer-centric collections has driven the net promoter score from 0 to 63

• Working with FICO, NAB has become more agile and more flexible

National Australia Bank uses FICO solution

to put customers first and improve

collections results

Client: National Australia Bank (NAB) has 35,000 employees and ranks among the world’s top 25 banks in terms of market capitalization.

Challenge: NAB wanted to change its approach to collections and identify the best communication methods for each customer in order to improve performance while also improving customer satisfaction and convenience.

Solution: FICO® Customer Communication Services

Results: NAB now automates 75% of customer contacts and its net promoter score has skyrocketed.

When National Australia Bank (NAB) changed the name of its collections department to “NAB Assist,” it was about more than just putting a friendlier name on a difficult task — it was a recognition of the bank’s commitment to the financial well-being of its customers. “We want to ensure that we’re providing

COMMUNICATION

“ With FICO Customer Communication Services, we’re able to have the right conversations with the right customers at the right time.” Jonathan McCleery, Head of Collections, National Australia Bank

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FICO is a registered trademark of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademark of their respective owners. © 2019 Fair Isaac Corporation. All rights reserved. 4649CS_EN 1/19 PDF

NORTH AMERICA+1 888 342 6336 [email protected]

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ASIA PACIFIC+65 6422 7700 [email protected]

COMMUNICATIONNational Australia Bank uses FICO solution to put

customers first and improve collections results

our customers with the services they need for their own benefit,” explains Jonathan McCleery, Head of Collections at National Australia Bank. “When we contact them about a debt or late payment, we want them to have a good customer experience, which is not what people traditionally expect from a collections call.”

Taking a new approach to collections

In the past, NAB used standard phone-based collections processes, which was challenging for both the bank and its customers. The bank took a high-frequency contact approach, and this taxed the morale of customer service employees, who found themselves making many difficult calls, and it was frustrating for customers, who could feel overwhelmed by the collections attempts. NAB knew there was a better way for everyone involved, and it looked to FICO for a solution.

“I recognized FICO as an organization that could really deliver in terms of its knowledge and experience,” says McCleery. “And I was impressed by the desire to follow through with helping us implement a new collections approach. FICO has been like a partner to us.”

NAB found its new approach in FICO® Customer Communication Services (CCS), a multi-channel, automated customer contact solution for debt and payment management. Within CCS,

the bank creates templates and scripts that are delivered to customers by virtual agents via text messages, phone calls, in-app messages and emails. The bank can adjust the tone of the scripts so that customers with a more severe delinquency receive a stricter message, and it can use customers’ communication preferences to contact them the way they want. CCS integrates with the bank’s core data systems and tracks contact results to avoid unnecessary repeat attempts that could result in bad customer experiences.

Automating collections brings great benefits

In addition to moving more of its customer contacts to automated channels, NAB has also modified its contact strategies to optimize results. The bank uses CCS for early-stage collections, and it has found this to be an effective approach. “In our experience, CCS works best for accounts that are 60 days or less delinquent,” says McCleery. “By reaching out to customers early and utilizing multiple channels so we can contact them the way they’d like, we’ve dramatically increased customer satisfaction — our net promoter score has gone from 0 to 63, which is a big deal for collections.”

NAB has realized other benefits as well. Staff engagement has risen significantly, the attrition rate has dropped and the bank can more easily adapt to seasonal

staffing level fluctuations. NAB has automated 75% of customer interactions, which has been a boon for the whole business. “The agility and efficiency that we’ve been able to achieve through automation has been a real prize for us,” says McCleery. “It has helped us reduce costs, improve performance and achieve what we want in terms of customer relations. It really ticks all the boxes.”

McCleery is particularly proud of the customer relations piece. “We truly work with our customers to assist them, and we put our trust and respect for them at the heart of everything we do,” he says. “There’s more to collections than just the bottom line, and with FICO Customer Communication Services, we’re able to have the right conversations with the right customers at the right time. That benefits everyone involved.”

Click here to learn how FICO®

Customer Communication

Services can help improve

collection success.

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Customer Credit Lifecycle

© 2019 Fair Isaac Corporation. All rights reserved. 60

FICO & NAB | Banking on Automation to Improve Customer Engagement

NAB Customer Testimonial

Watch the success story video

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Retail finance leader drives better results with

smart, automated and compliant collections

Client: One of the world’s largest retail finance providers*

Challenge: Stay connected with its customers despite changing communication preferences, while also reducing cost and adding scale to its call center

Solution: FICO® Risk Intervention Manager, the debt management module of FICO® Customer Communication Services

Results: 42% increase in right party contacts; 30% increase in payment made during the call; 8% average reduction of roll rate; increase in early stage collections from 10% to 51%; greatly reduced requirements for agent staffing

ChallengeEvolving customer contact preferences have forever changed how organizations collect delinquent debt. One of the world’s leading retail finance providers sought to transform how it connected with its customer base to drive better, more compliant collections, while reducing the cost and improving the efficiency and scale of its call center. The company was also looking to test and quantify the results of various contact strategies, so it could more rapidly adjust to economic changes and other factors.

CUSTOMER COMMUNICATIONSRetail finance leader drives better results with smart, automated and compliant collections

“Not only was the FICO solution an expense reduction play, but we discovered that many customers prefer the automated option as shown by reduced roll rates and payment frequency.” Senior Analyst, Collection Strategy

* This case study is based on information from a FICO client that requested anonymity.

30% increase in payments made during calls

10% – 50% increase in early stage collection

8% decrease in roll rate

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FICO is a trademark or registered trademark of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2015 Fair Isaac Corporation. All rights reserved. 3090CS_EN 06/15 PDF

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ASIA PACIFIC +65 6422 7700 [email protected]

SolutionTo help the company achieve these goals, the finance provider was looking for a solution that would enable them to implement sophisticated engagement strategies to connect and resolve debt with customers over the right channel — whether mobile application, voice, SMS, web or email — at the right time and drive resolution. After looking at the available solutions, they chose FICO® Risk Intervention Manager. With its sophisticated rules engine, Risk Intervention Manager would be able to help the finance provider drive targeted notifications, alerts and interactions, based on customer preferences and according to local regulatory compliance guidelines. It could also replace its reliance on expensive, non-scalable call-center interactions with a highly empirical, automated approach to shaping targeted action and resolution strategies.

Using Risk Intervention Manager as an extension of the contact center and customer self-service operation, the finance provider was able to maximize the time and productivity of its workforce, providing high quality and consistent customer care, and driving regulatory compliance. By combining dynamic content, interactive messaging, current customer data and the right contact strategies to every case, the solution’s virtual agent capabilities provided the finance provider with an automation tool

that can resolve a large percentage of customer cases and requests without involving a human agent.

The ability to add additional channels of communication, such as cell phone technology, helped the finance provider drive outbound communications to preferred channels in an integrated contact strategy. This helped ensure it could expand capabilities while maintaining a single dialogue with each customer.

The finance provider also benefitted from the FICO® Risk Intervention Manager analytically powered rules engine, which treats each customer based on the case-specific attributes, history and contact results. It used the rules engine to create a series of champion/challenger testing, which allowed it to incrementally test and quantify the results of various contact strategies and adjust “on the fly” to evolving conditions, such as economic factors, seasonality and customer preferences.

ResultsBy implementing Risk Intervention Manager, combined with FICO best practices for collection and recovery, the finance provider was able to achieve a:

• 42% increase in right party contacts

• 30% increase in payment made during the call

• 8% average reduction of roll rate

• Increase in early stage collections from 10% to 51%

• Substantial reduction in agent staffing requirements

Another benefit is that the organization is now able to apply FICO Risk Intervention Manager to pre-delinquency strategies, so at-risk or other customers can be contacted before a payment is late.

Risk Intervention Manager was also compared to offshore and domestic call centers, and the results were significant — the solution’s virtual agent collects equally or better in the chosen segments, and at a much lower cost. It also can scale to seasonal/cyclical factors, as well as business continuity and disaster recovery staffing (e.g., when ice storms or hurricanes close call centers).

A senior collection strategy analyst for the finance provider said, “Not only was the FICO solution an expense reduction play, but we discovered that many customers prefer the automated option as shown by reduced roll rates and payment frequency.”

For more information, visit us on the web at:

www.fico.com/ccs

CUSTOMER COMMUNICATIONSRetail finance leader drives better results with smart, automated and compliant collections

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FICO & China Guangfa Bank | Improving Collections

with Automated Customer Communications

FICO & China Guangfa Bank Customer Testimonial

Watch the success story video

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© 2019 Fair Isaac Corporation. All rights reserved. 64

Metrobank Card Automates its Collections Efforts

and Improves Staff Engagement

Metrobank Card Customer Testimonial

Watch the success story video

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Marketing

Customer Credit Lifecycle

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Case studies ........................................................................................................66Risk aware campaigns

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© 2019 Fair Isaac Corporation. All rights reserved. 66© 2019 Fair Isaac Corporation. All rights reserved. 1

MARKETING Risk Aware Campaigns

FICO® Marketing Solutions SuiteClient success stories

Driving Sales Across the Pharmaceutical Industry

FICO® Marketing Solutions Suite’s Compliant Campaigns Keep Both Healthcare Practitioners and Consumers Engaged

Challenge:

• A global pharmaceutical company needed to manage marketing campaigns and communication tools while adhering to information privacy regulations like HIPAA

• Focused on promoting their medicine brands over competitors’

• Finding a system that also helps consumers stay up to date with their prescriptions

Solution:

• FICO® Decision Management Suite

• Customer-centric marketing campaign management

• Sophisticated data and analytics to create precisely targeted and timed campaigns with relevant context

Results:

• Multi-tenant Marketing Solutions supports 18 different brands under the company

• 300+ marketing campaigns executed weekly for all channels

• Fully validated systems to meet compliance with FDA for sampling and HIPAA

• Offers better, compliant, communication with healthcare practitioners and consumers

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© 2019 Fair Isaac Corporation. All rights reserved. 67

MARKETING Risk Aware Campaigns

© 2019 Fair Isaac Corporation. All rights reserved. 2

Sell More Phones While Reducing Risk and Retaining Customers with FICO® Marketing Solutions

Challenge:

• A major telecom company needed to grow business without customers breaking the bank to sign contracts

• Identifying pre-screen offers in line with affordability

• Customerbasespansthespectrumincluding“thin-file”consumers,creatingacomplex set of risk based offers to manage

Solution:

• FICO Marketing Solutions Prospect Database

• 3rd Party traditional and alternative data hosted and managed by FICO

• A data solution that integrates easily with FICO® Origination Manager and other FICO systems

• Aggregates traditional and alternative data sources for pre-screen offers

Results:

• A pre-screen process to sell more phones, keep customers on the company’s plan longer, and reduce risk

Finding Consumers the

Optimal Mobile Service Plan

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© 2019 Fair Isaac Corporation. All rights reserved. 68

MARKETING Risk Aware Campaigns

© 2019 Fair Isaac Corporation. All rights reserved. 3

FICO® Marketing Solutions Suite combines data, analytics and sophisticated software for customer-centric marketing strategies that propel growth

Challenge:

• A Retail Private Label Financing Provider’s existing marketing system restricted growth potential with limited data and functionality for marketing programs

• Disparatedatasetsmeantdifficultyinunderstandingcustomersandtreatingthem with the right offer

• Stayingcompetitiveinretailfinancingwhileimprovingrevenueandefficiency for merchants

Solution:

• FICO® Marketing Solutions Prospect Database

• Customer-centric marketing campaign management

• Advanced rules-driven marketing database aggregates card holder and merchant dataforcustomerprofiling

• Reporting module displays program success metrics

Results:

• 5x growth in receivables

• 3x growth in accounts

• Expanded customer-centric marketing and loyalty programs

• Increasedmarketingefficiencyformerchantsbyloweringtacticalactivitiestoperform

• Reduced IT reliance

Drive Scalable Customer

Marketing and Loyalty

Strategies

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MARKETING Risk Aware Campaigns

© 2019 Fair Isaac Corporation. All rights reserved. 4

FICO® Marketing Solutions Suite turns complex data into insightful and effective marketing campaigns quickly and easily

Challenge:

• A Latin American retail conglomerate needed a marketing system that scales to handle private label credit card portfolios across 6 countries that their business units operate in

• Onboardingcustomers,engagingthemandpromotingusageisdifficultacrossregions and business units due to complexity and volume of data

Solution:

• FICO® Marketing Solutions Suite

• Interpret and self-manage vast data volume and variety with data integration tools

• Deploy valuable offers and communications when customers are most engaged and likely to respond

• ProfessionalServicesensurequalityserviceandconfigurationsuccess

Results:

• Increase in Credit Card activation, reuse, and frequency of use

• Managing data and Customer Centric Marketing Campaigns across more business units

• Future projects include utilizing real-time campaign management functionality

Simplify Highly Targeted

Marketing Decisions

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FICO is a registered trademark of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2019 Fair Isaac Corporation. All rights reserved.

4669BK_EN 01/19 PDF

NORTH AMERICA +1 888 342 6336 [email protected]

FOR MORE INFORMATION www.fico.com www.fico.com/blogs

LATIN AMERICA & CARIBBEAN +55 11 5189 8267 [email protected]

EUROPE, MIDDLE EAST & AFRICA +44 (0) 207 940 8718 [email protected]

ASIA PACIFIC +65 6422 7700 [email protected]

Customer Credit Lifecycle

FICO and TRIAD are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2019 Fair Isaac Corporation. All rights reserved. 4671CS_EN 01/19 PDF

NORTH AMERICA +1 888 342 6336 [email protected]

FOR MORE INFORMATION www.fico.com www.fico.com/blogs

LATIN AMERICA & CARIBBEAN +55 11 5189 8267 [email protected]

EUROPE, MIDDLE EAST & AFRICA +44 (0) 207 940 8718 [email protected]

ASIA PACIFIC +65 6422 7700 [email protected]

MARKETINGRisk Aware Campaigns

“FICO® Marketing Solutions Suite turns complex data into insightful and effective marketingcampaignsquicklyandeasily”Senior Bankcard Executive

Challenge:

• Super-Regional bank with small credit card portfolio wanted to grow their card businesswithoutincreasingriskprofile

• Requiredaholisticsolutiontofindtherightcustomers:

• Data from multiple data sources

• Advanced analytics to identify prospect and customer behavior patterns

Solution:

• FICO® Bankcard Growth Solution

• Innovative, integrated marketing and underwriting platform powered by continuous learning analytic hub

Results:

• Increasedacquisitionvolume3-foldinfirst12months

• Increased cross-sell penetration 15%

• Average balance per account up 8%

• Across all consumer product lines

Driving Growth Across

Consumer Card, Auto,

Unsecured & HELOC

Lending