FICO and TransUnion Introduce a Powerful new FICO Score for the Canadian Market
TORONTO—31, Jan 2011 —FICO (NYSE:FICO), the market leader and recognized standard in credit scoring, and TransUnion, a global leader in credit and information management, today announced they are bringing the newest FICO® Score service to Canada. Based on the FICO® 8 Score, the new service offers a highly predictive general risk score designed specifically for the Canadian market.
Validation tests are occurring now, and they indicate customers will receive three-to-five times the incremental improvement in risk prediction typically generated by an enhanced scoring model. The service will be available for full implementation in March 2011. Over the preceding two decades, FICO and TransUnion have partnered to deliver a unique combination of powerful analytics, agile service infrastructure and robust data to an extensive customer base in Canada, which includes leading national, regional and international lenders.
The new version of the FICO® Score adapts the latest predictive analytics technologies and scoring blueprints from FICO to the specific dynamics of the Canadian market. With TransUnion’s database, covering the entire Canadian credit population, the new score captures the latest risk patterns and offers more predictive risk assessment, especially in support of new account originations, new-to-credit populations and line-of-credit portfolios. The FICO® 8 Score evaluates line of credit accounts separately from other revolving credit instruments—like credit cards—since consumers use these products differently. In addition, the score evaluates consumers with relatively few credit accounts differently from consumers with more mature credit histories, in order to improve risk identification.
Today, FICO delivers nearly 350 million FICO® Scores to clients throughout Canada annually. Canadian credit grantors use FICO® Scores across the entire credit lifecycle, from booking new accounts to managing current customers. Nine of the top 10 Canadian lenders use the FICO® Score, and major Canadian lenders have committed to evaluate and plan their adoption of the new FICO® 8 Score.
“TransUnion and FICO have long collaborated to deliver some of the most sophisticated risk analytics solutions to Canadian financial services companies,” said Thomas Higgins, TransUnion’s Vice President of Analytics and Decisioning. “Once again, we are combining our best-in-class service infrastructure with a new version of the FICO Score, to help lenders enhance decision making and improve their bottom line.”
“We have had a strong presence in Canada for more than 20 years and during that time, with broad collaboration from TransUnion, we have established FICO as the leading provider of credit scores in the country,” said Jordan Graham, executive vice president of Scores for FICO. “TransUnion has built an extensive credit history database that covers the entire Canadian population and, as a result, unleashes the full power of the new FICO 8-based score for our customers.”
Clients can easily upgrade to the new version of the FICO® 8 Score to take advantage of the added features and performance. The joint FICO-TransUnion service has been designed to integrate seamlessly into a client’s established credit processes with minimal IT and operational support, delivering advanced predictive power with a minimum of implementation costs.
“Our Canadian clients tell us consistently about their desire to build their decision management systems on the most trusted score model available,” said Kathleen Stares, vice president and head of FICO Canada. “We understand and appreciate the value they place on advanced predictive analytics, and are pleased to be able to offer them FICO 8, the global industry standard, through our partnership with TransUnion.”
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Based in Toronto, with global headquarters located in Chicago, Illinois, TransUnion provides service and support throughout Canada. Visit www.transunion.ca to learn more.
About the FICO® Score
With over 10 billion FICO® Scores used worldwide to empower lenders to make credit decisions, the FICO® Score has become the standard measure of credit risk worldwide. FICO® Scores are used today in more than 20 countries on five continents, as well as all of the top 50 U.S. financial institutions and both the 25 largest U.S. credit card issuers and auto lenders. The latest FICO® Score version, the FICO® 8 Score, has already been adopted by more than 3,000 lenders.
FICO (NYSE:FICO) transforms business by making every decision count. FICO’s Decision Management solutions combine trusted advice, world-class analytics and innovative applications to give organizations the power to automate, improve and connect decisions across their business. Clients in 80 countries work with FICO to increase customer loyalty and profitability, cut fraud losses, manage credit risk, meet regulatory and competitive demands, and rapidly build market share. FICO also helps millions of US individuals manage their credit health through the www.myFICO.com website. Learn more about FICO at www.fico.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, 2010. 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.
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