By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    predictive analytics in dropshipping
    Predictive Analytics Helps New Dropshipping Businesses Thrive
    12 Min Read
    data-driven approach in healthcare
    The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas
    6 Min Read
    analytics for tax compliance
    Analytics Changes the Calculus of Business Tax Compliance
    8 Min Read
    big data analytics in gaming
    The Role of Big Data Analytics in Gaming
    10 Min Read
    analyst,women,looking,at,kpi,data,on,computer,screen
    Promising Benefits of Predictive Analytics in Asset Management
    11 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: FICO: Stretching beyond credit scores
Share
Notification Show More
Latest News
ai digital marketing tools
Top Five AI-Driven Digital Marketing Tools in 2023
Artificial Intelligence
ai-generated content
Is AI-Generated Content a Net Positive for Businesses?
Artificial Intelligence
predictive analytics in dropshipping
Predictive Analytics Helps New Dropshipping Businesses Thrive
Predictive Analytics
cloud data security in 2023
Top Tools for Your Cloud Data Security Stack in 2023
Cloud Computing
become a data scientist
Boosting Your Chances for Landing a Job as a Data Scientist
Jobs
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Exclusive > FICO: Stretching beyond credit scores
Exclusive

FICO: Stretching beyond credit scores

StephenBaker2
Last updated: 2010/04/13 at 4:00 PM
StephenBaker2
3 Min Read
SHARE

 

When I was working on my book, I stopped by the Fair Isaac research labs in San Rafael, Calif. After all, when it came to modeling individuals through their data, Fair Isaac (now FICO) was a pioneer. It practically invented credit-risk scoring.

In its work for banks, FICO fine-tuned the champion-challenger testing that’s now rampant on the Internet. It would try hundreds of different offers with different pools of customers, eventually coming up with something close to a customized come-on for each address. This turned the traditional credit risk market on its head. Instead of people struggling to meet a bank’s inflexible standards, the bank fitted its offer to the customers. High risk customers, in theory, weren’t blocked out. They simply had to pay more to insure against failure. (I write “in theory,” because during the last bubble, the second part of the formula–ie. paying more–was obscured by financial gimmickry, leading to disaster.)

More Read

analyzing big data for its quality and value

Use this Strategic Approach to Maximize Your Data’s Value

7 Data Lineage Tool Tips For Preventing Human Error in Data Processing
Preserving Data Quality is Critical for Leveraging Analytics with Amazon PPC
Quality Control Tips for Data Collection with Drone Surveying
Data Driven Companies Must Understand Differences Between Fact Tables & Dimension Tables

Now that these analytic methods are stretching across the economy, FICO is doing some stretching of is own–offering models, simulations and optimizations of businesses and their operations. Customers include…


 

When I was working on my book, I stopped by the Fair Isaac research labs in San Rafael, Calif. After all, when it came to modeling individuals through their data, Fair Isaac (now FICO) was a pioneer. It practically invented credit-risk scoring.

In its work for banks, FICO fine-tuned the champion-challenger testing that’s now rampant on the Internet. It would try hundreds of different offers with different pools of customers, eventually coming up with something close to a customized come-on for each address. This turned the traditional credit risk market on its head. Instead of people struggling to meet a bank’s inflexible standards, the bank fitted its offer to the customers. High risk customers, in theory, weren’t blocked out. They simply had to pay more to insure against failure. (I write “in theory,” because during the last bubble, the second part of the formula–ie. paying more–was obscured by financial gimmickry, leading to disaster.)

Now that these analytic methods are stretching across the economy, FICO is doing some stretching of is own–offering models, simulations and optimizations of businesses and their operations. Customers include Coca-Cola and Best Buy. I recently discussed FICO’s “business rules management” with Don Griest, senior director of product management at the company. I tried out a new phone jack for the podcast. See what you think.          


Listen to the podcast:


 

TAGGED: data modeling, data quality, fico, risk management
StephenBaker2 April 13, 2010
Share this Article
Facebook Twitter Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

ai digital marketing tools
Top Five AI-Driven Digital Marketing Tools in 2023
Artificial Intelligence
ai-generated content
Is AI-Generated Content a Net Positive for Businesses?
Artificial Intelligence
predictive analytics in dropshipping
Predictive Analytics Helps New Dropshipping Businesses Thrive
Predictive Analytics
cloud data security in 2023
Top Tools for Your Cloud Data Security Stack in 2023
Cloud Computing

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

[mc4wp_form id=”1616″]

You Might also Like

analyzing big data for its quality and value
Big Data

Use this Strategic Approach to Maximize Your Data’s Value

6 Min Read
data lineage tool
Big Data

7 Data Lineage Tool Tips For Preventing Human Error in Data Processing

6 Min Read
data quality and role of analytics
Data Quality

Preserving Data Quality is Critical for Leveraging Analytics with Amazon PPC

8 Min Read
data collection with drone use
Data Collection

Quality Control Tips for Data Collection with Drone Surveying

9 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence
AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?