MINNEAPOLIS, Oct. 1, 2012 /PRNewswire/ -- FICO
(NYSE:FICO), the leading provider of analytics and decision
management technology, today announced that Universal American,
President's Choice Bank, Fiserv and Interbank have been awarded
2012 FICO Decision Management Awards. These awards honor companies
that have achieved outstanding business results through credit risk
management, insurance claims management, fraud control and analytic
excellence. Winners will be featured in presentations at FICO World
2013 in Miami, April 30-May 2.
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All award nominations underwent a rigorous judging process.
Winners were selected by a panel of esteemed industry analysts and
journalists: Douglas Blakey, editor,
Retail Banker International; Brian
McDonough, research manager, Business Analytics Solutions,
IDC; Chris O'Brien, technology columnist, San Jose Mercury
News; Karen Pauli, research
director, CEB TowerGroup; and James
Taylor, CEO, Decision Management Solutions.
Analytic Excellence Award – President's Choice Bank
President's Choice Bank received the Analytic Excellence Award
for its use of FICO decision optimization software and FICO
consulting to develop a custom credit line management strategy,
implemented in FICO® TRIAD® Customer Manager.
This solution enabled PCB to adapt to new Canadian regulations,
which require banks to obtain express consent from a cardholder
prior to granting a limit increase.
PCB partnered with FICO to develop an optimized credit line
increase strategy that met this requirement while providing
portfolio growth and staying within the bank's risk appetite. PCB
reported a 400 percent lift in qualifying volumes (offers) and
responses using the optimization-derived credit line increase
strategy vs. the former strategy, as well as an increase of $750+
in sales, $200+ in receivables and $12+ in profit per targeted
account.
"President's Choice Bank is doing everything right in its
approach to decision management," said James Taylor, CEO of
Decision Management Solutions and author of Decision Management
Systems: A Practical Guide to Using Business Rules and Predictive
Analytics. "They're using champion / challenger testing, they're
changing their call center processes, they're blending optimization
with rules and analytics. This is a textbook case of how to use
analytics to improve results."
Credit Risk Award - Interbank
Banco Internacional del Peru
(Interbank) received the Credit Risk Management award for its new
credit management system, based on FICO software, which has
improved the effectiveness, agility and homogeneity of the
credit-setting process. By using FICO systems including
FICO® Capstone® Decision Accelerator, the
bank developed a real-time, simpler and customer-centric
experience, whereby Interbank can evaluate applicants for many
products at the same time using the same documentation and data
entry.
Interbank is able to personalize its credit evaluation processes
and offers, and can define pricing strategies according to customer
risk, which are applied consistently no matter which channel its
clients choose to apply for credit. This process has facilitated a
healthy growth of Interbank's credit card market share from 16
percent to 21 percent, making the bank the top issuer in the
market. At the same time, Interbank achieved an exceptional
decrease in operation costs, including a 75 percent reduction in
the number of employees needed to manage credit evaluations.
"The judges were impressed by Interbank's achievements in
customer-centric decision management," said Brian McDonough,
research manager, Business Analytics Solutions, at industry analyst
IDC. "The bank's results demonstrate the power of being able to
match the customer's total credit needs at the point of
decision."
Fraud Control Award - Fiserv
Fiserv (Nasdaq: FISV) received the Fraud Control Award for the
development and implementation of its Risk Office consulting
service, which leverages FICO Falcon Fraud Manager to provide
customized fraud mitigation services to subscribing financial
institutions. In the last five years, almost 1,000 debit, credit,
and prepaid card issuers have subscribed to Risk Office(SM), and on
average they enjoy an approximate 60 percent reduction in reported
fraud basis points, compared to non-subscribing clients.
This is achieved by combining FICO's neural network scoring
model with the constant vigilance of specialized risk analysts who
review client fraud trends and overall portfolio data to develop
custom strategies that help prevent fraudulent transactions. Within
the FICO® Falcon® Fraud Manager product, Risk
Office analysts augment case management plans with real-time
transaction decline rules to intelligently prevent fraud as it
occurs. Additionally, Fiserv has leveraged the transaction-tagging
features in Falcon Fraud Manager to gain instant insight into
current fraud trends and adjust rule strategies accordingly for its
subscribers.
"Risk Office from Fiserv has seen steady growth and helped our
clients reduce their dollar fraud losses by an average of 40
percent," said J.B. Rambaud, general
manager of risk, Card Services, Fiserv. "Our analysts take action
on a client's behalf and can help them swiftly mitigate risk. They
use all of the tools at their disposal, of which FICO Falcon Fraud
Manager is a big part, to proactively monitor cases and help
clients solve fraud issues quickly and resolutely, minimizing
loss."
"The FISERV submission was very comprehensive," said
Douglas Blakey, editor of Retail
Banker International. "They are different from the other
candidates in that they are not a financial services institution
themselves, but their excellence in helping more than 1,000 card
issuers improve their fraud results made them a winner."
Insurance Claims Management Award – Universal
American
Universal American won the Insurance Claims Management Award for
its use of FICO® Insurance Fraud Manager to detect fraud both
before and after claims adjudication. By integrating IFM with its
claims platform, Facets, Universal American can deny fraudulent
claims up front prior to payment. In addition to the pre-payment
function, UAM also utilizes the post-payment capabilities of IFM,
which enable the identification of fraud, waste and abuses by
providers.
Within 18 months of implementation, Universal American saved
more than $6 million in pre-payment
fraud losses alone, attaining an ROI of over 9:1. In 2011, the
insurer reconstructed its Special Investigations Unit (SIU) and
Compliance Department to comply with all federal and state
regulations, and the FICO solution was a big part of this
reconstruction. Universal American has also participated as a beta
partner for FICO's new predictive model that scores facilities, and
has found cases with potential overpayments totaling several
hundred thousand dollars.
"Cutting claims payments off is a very forward-looking way to
handle fraud, waste and abuse, as the industry standard is to chase
payments afterwards," said Karen
Pauli, research director, CEB TowerGroup. "Universal
American's SIU went from pay-and-chase with a few investigators to
reorganizing the claims department to meet regulations and adding
value with nurses, coders, and prepayment specialists. They are
clearly ahead of the pack in their approach to insurance
fraud."
"We are delighted to be honored by FICO," said James Cooper, Special Investigative Unit manager
for Universal American Corp. "We are among the first Medicare
Advantage plans to have a fraud, waste and abuse pre-payment
program of this kind. This is the way of the future."
"Predictive analytics and decision management can have a
transformative effect on business results, as these award-winners
clearly show," said Dr. Andrew
Jennings, chief analytics officer at FICO. "These
forward-thinking companies are defining best practices for the
entire industry. We congratulate the winners who distinguished
themselves from among many worthy nominees."
About FICO
FICO (NYSE:FICO) 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 FICO® Score — the standard measure of
consumer credit risk in the United
States — along with industry-leading solutions for 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. FICO also helps millions
of individuals manage their personal credit health through
www.myFICO.com. Learn more at www.fico.com. FICO: Make every
decision count™.
For FICO news and media resources, visit www.fico.com/news.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the
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
customers and key alliance partners, its ability to continue to
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
benefits of any acquisitions, continuing material adverse
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, 2011 and its last quarterly report
on Form 10-Q for the period ended June 30,
2012. If any of these risks or uncertainties materializes,
FICO's results could differ materially from its expectations. FICO
disclaims any intent or obligation to update these forward-looking
statements.
FICO, TRIAD, Falcon, Capstone and "Make every decision count"
are trademarks or registered trademarks of Fair Isaac Corporation
in the United States and in other
countries.
SOURCE FICO