Europe's Bankers Rank Analyzing Big Data on Customers Among Top
2013 Priorities, According to FICO-Efma Survey
LONDON, Nov. 20, 2012 /PRNewswire/ -- FICO (NYSE:FICO),
the leading provider of analytics and decision management
technology, and Efma today announced the results of the sixth
European Credit Risk Survey, which indicates retail bankers' risk
management priorities for 2013. In the survey, which queried credit
risk professionals from 27 countries in September and October, 61
percent of respondents said cross-selling products to existing
customers will be a priority in 2013, and 54 percent said they will
analyze Big Data to better understand customers' needs and
risk.
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"In this risk-averse period, banks are looking for credit growth
primarily from existing customers, on whom they have more data,"
said Frans Labuschagne, general
manager for FICO in Europe, the
Middle East and Africa. "But customers are risk-averse too, so
banks need to really dig into customer needs to identify offers
that might work. That's where Big Data comes in — it's a new
resource that, if used wisely, can guide much more customer-centric
offers and services."
In the survey, 71 percent of respondents said demonstrating a
higher return on capital is a priority for next year, making this
the top priority for 2013. The other highest priorities identified
were using mobile channels (49 percent) and increasing capital to
meet Basel requirements (just 40
percent, but 21 percent put it as a top priority).
On the risk front, at least 40 percent of respondents saw
delinquencies rising in the next six months on mortgages, auto
loans, credit cards, small business loans and overdrafts. "This
represents an improvement on the prior survey, released in July,
when these numbers were above 50 percent," said Labuschagne. "For
example, 44 percent of respondents forecast an increase in mortgage
delinquencies, compared to 55 percent in the last survey."
The biggest change in the credit demand and supply picture
occurred in the so-called "credit gap" between the percentages of
respondents forecasting a rise in demand for credit vs. a rise in
supply. The credit gap forecast for small businesses fell sharply
in this survey, to the lowest point this year, just 9 points. The
respondents forecasting an increase in volume of credit requested
by small businesses fell from 37 to 35 percent, while those
forecasting an increase in credit granted rose from 16 to 26
percent. However, the credit gap forecast for consumer lending rose
to a full 20 points. Now, 35 percent of respondents predict a rise
in the amount of credit requested by consumer, compared with just
15 percent who predict the amount granted will rise.
"Governments continue to pressure lenders to expand credit to
businesses, and recent programmes like the UK small business
lending scheme announced by the Bank of England should help," added Patrick Desmares, secretary general of Efma.
"However, FICO and Efma believe lenders can and should do
more to make capital available to small and medium-sized
businesses, which can fuel economic growth and which continue to
struggle to get credit."
A detailed report, including specific results for the UK,
Germany/Austria/Switzerland and Spain/Portugal, is available online. Participants
included credit-granting institutions ranging from local banks to
global institutions. Around 70 representatives from 27 European
countries and 55 companies responded to this survey.
About FICO
FICO (NYSE:FICO), frmerly known as Fair
Isaac, delivers superior predictive analytics solutions that drive
smarter decisions. The company's groundbreaking use of mathematics
to predict consumer behavior has transformed entire industries and
revolutionized the way risk is managed and products are marketed.
FICO's innovative solutions include the industry-leading solutions
for measuring credit risk, managing credit accounts, identifying
and minimizing the impact of fraud, and customizing consumer offers
with pinpoint accuracy. Most of the world's top banks, as well as
leading insurers, retailers, pharmaceutical companies and
government agencies, rely on FICO solutions to accelerate growth,
control risk, boost profits and meet regulatory and competitive
demands. Learn more at www.fico.com. FICO: Make every decision
count™.
For FICO news and media resources, visit www.fico.com/news.
About Efma
As a global not-for-profit organisation,
Efma brings together more than 3,300 retail financial services
companies from over 130 countries. With a membership base
consisting of almost a third of all large retail banks worldwide,
Efma has proven to be a valuable resource for the global industry,
offering members exclusive access to a multitude of resources,
databases, studies, articles, news feeds and publications. Efma
also provides numerous networking opportunities through working
groups, online communities and international meetings.
For more information: www.efma.com
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statements contained in this news release that relate to FICO or
its business 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 the success of the Company's Decision
Management strategy and reengineering plan, the maintenance of its
existing relationships and ability to create new relationships with
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develop new and enhanced products and services, its ability to
recruit and retain key technical and managerial personnel,
competition, regulatory changes applicable to the use of consumer
credit and other data, the failure to realize the anticipated
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developments in global economic conditions, and other risks
described from time to time in FICO's SEC reports, including its
Annual Report on Form 10-K for the year ended September 30, 2012. If any of these risks or
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CONTACT: Media - FICO:
Irina McGurk
for FICO, Catalysis, +44 (0)20 7759 2022,
irina.mcgurk@catalysis.co.uk, or Investors/Analysts - FICO:
Steven Weber, FICO, +1-800-213-5542,
investor@fico.com, or Media - Efma:
Karine
Coutinho, Efma, +33 1 47 42 69 82, karine@efma.com
SOURCE FICO