FICO shares the story of a client, which it refers to as Bank C, which was fined by regulators for misconduct in selling fee-based extra services to new account holders. Moreover, the light shined on this problem made it clear that over-zealous sales activities weren’t the institution’s only vulnerability to fines and reputational damage from regulatory noncompliance. Bank C executives ... Read More »
Tag Archives: Bankinganalyticsblog.fico.
At a panel discussion which FICO hosted in a recent conference in Indonesia, an Australian attendee stated that today’s CRO needs to be “part lawyer, part risk manager and part product manager to succeed.” Clearly, the role of the CRO has gone from corporate policemen to something far more operational in nature. An Indian delegate agreed, saying that he felt ... Read More »
Country Risk Climate Central and Eastern Europe: The “Tug of War” between Sales and Risk Is About to Increase
FICO’s latest European Credit Risk Outlook, developed with EFMA, contains a snapshot of how risk managers in Central and Eastern Europe see the next six months. This region represents a great diversity of economies, at different stages of credit maturity and with different growth rates. But the usual pattern is expected: Portfolios backed by collateral (mortgage and auto) trend to ... Read More »
FICO has used non-monetary variables in two recent online banking models for international banks, leading to significant added fraud detection. Last summer, a $1.5 million bank/wire fraud case garnered quite a few news headlines. A bank account of a California-based escrow firm was hacked, and three payments totaling $1.5 million were wired to accounts in China and Russia. Only $432,215 was recovered, ... Read More »
Andrew Jennings stated in his latest Bankinganalyticsblog.fico.com that 2013 has been quite a year in banking analytics – regulatory challenges, growth opportunities, new fraud threats, and the surge of mobile as the hot channel for customer engagement. He expects 2014 to bring even more change. Here are his top five predictions for banking analytics in 2014. Big Data winners and ... Read More »