Europe's Bankers Rank Analyzing Big Data on Customers Among Top 2013 Priorities, According to FICO-Efma Survey

     Europe's Bankers Rank Analyzing Big Data on Customers Among Top 2013
                  Priorities, According to FICO-Efma Survey

Customer cross-selling, improving return on capital are also top priorities;
"credit gap" will ease for small businesses

PR Newswire

LONDON, Nov. 20, 2012

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

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,
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 and "Make every decision count" are trademarks or registered trademarks
of Fair Isaac Corporation in the United States and in other countries.

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

Website: http://www.fico.com
 
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