MINNEAPOLIS, MN – Fair Isaac Corporation (NYSE: FIC), the leading provider of analytics and decision technology, announced the immediate availability of custom collections scores through its TRIAD™ adaptive control system, the leading customer portfolio management solution that combines software, analytics and decision optimization techniques to manage 44 billion account decisions globally each year. The addition of collections scores enables creditors to better segment delinquent accounts for more effective prioritization and allocation of collection resources.
“The availability of custom collections scores for TRIAD clients means ready access to the industry’s most predictive collections analytics,” said Bernhard Nann, vice president of Fair Isaac’s Prospect and Customer Management Solutions (PCMS) group. “By tapping the extensive data resources available through TRIAD, we are able to rapidly build custom scoring models and deliver them on an ASP basis for immediate use by creditors.”
Card issuers historically have used TRIAD’s delinquent collections module to create early stage collections strategies incorporating behavior scores and other predictive decision keys. These treatment strategies are then executed in the lender’s collections or customer service system. The availability of custom collections scores improves the segmentation quality for these treatment strategies, while leveraging existing workflow systems such as Fair Isaac’s Debt Manager™ and RMS™ solutions.
“The collections segment of the credit life cycle remains an attractive frontier for analytic applications,” said Dale Williams, vice president of Fair Isaac’s Collections and Recovery Solutions group. “The availability of custom collections scores through TRIAD significantly deepens the customer’s view into the distressed account stage. We believe that our collections and recovery process incorporating workflow, network solutions and analytics provides the most comprehensive collections and recovery capability in the marketplace.”
Collections models can be built to rank order accounts according to the likelihood they will experience a particular event, such as rolling to the next delinquency stage or charging off. By identifying the accounts most at risk, a creditor can apply treatments that may prevent the negative events from occurring, and can thereby reduce losses.
Compared with other segmentation approaches, Fair Isaac’s ASP-based custom collections models are generally 5 to 20 percent more effective in separating accounts likely to have the worst outcomes from those likely to have the best outcomes.
Fair Isaac will build and host the custom collections models and will also deliver the scores on an ASP basis through its BridgeLink™ network. The ASP-based models are constantly monitored to pinpoint the appropriate time to retrain the model. In the collections environment where a score is used to prevent a certain outcome, frequent retraining has been shown to deliver more accurate scores.
Clients interested in learning more about Fair Isaac’s custom scoring solutions can order the White Paper “Static vs. Dynamic Model Impact on Predictive Performance in Early Stage Collections” at collectionsolutions@fairisaac.com or www.fairisaac.com.
About Fair Isaac
Fair Isaac Corporation is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company’s predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power billions of mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Through the www.myfico.com Web site, consumers use the company’s FICO® scores, the standard measure of credit risk, to manage their financial health. For more information, visit www.fairisaac.com.
Statement Concerning Forward-Looking Information – Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac, including statements regarding its new TRIAD custom collections scoring service, and the benefits to be derived from this offering, are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation, use and functionality of the offering, the risks that customers will not perceive material benefits from the offering, failure of the products to deliver the expected results, the possibility of errors or defects in the offering, regulatory changes applicable to the use of consumer credit and other data, and other risks described from time to time in Fair Isaac’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2004. Forward-looking statements should be considered with caution. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac’s results could differ materially from Fair Isaac’s expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements. Fair Isaac, TRIAD, Debt Manager, RMS, BridgeLink and FICO are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. Other product and company names herein may be the trademarks of their respective owners.
