FICO Launches Inclusion Accelerator Program and Financial Inclusion Lab to Help Advance Lender Financial Inclusion Initiatives
Representing the next phase of FICO’s longstanding commitment to financial inclusion innovation, these programs make it easy for the market to rapidly test and adopt alternative data solutions
As a longtime innovator in the use of alternative data in credit scores, FICO’s
“FICO was first to market in bringing broad based alternative data scoring products like UltraFICO Score and FICO Score XD to drive financial inclusion. With the Inclusion Accelerator Program and
These initiatives take on the ambitious role of providing lenders with streamlined assessment tools related to FICO’s latest innovations in credit scores, which can help accelerate adoption across the industry. Drawing on reliable new sources of data, more than 229 million US consumers can be scored by the FICO® Score Suite, more than any other broad-based credit scoring model in the market.
“As a big believer in testing different data sources to drive financial inclusion, my priorities in testing the potential of UltraFICO Score with demand-deposit account (DDA) attributes were broadening access to credit, speed to market, simplicity and leveraging an existing scorecard already built on the data – and it didn’t hurt that FICO was the organization that developed and branded it from a marketing, approval and compliance standpoint,” said
Lenders participating in the
- The launch of FICO® Score XD 2 in 2018 expanded coverage to score more than 26.5 million previously unscorable consumer files. 11.8 million of these consumers were without credit files and previously unscorable by any scoring system relying on traditional credit bureau data alone.
- In 2018, FICO launched the UltraFICO® Score focused on consumer contributed data. With the UltraFICO® Score, consumers are empowered to leverage their checking and savings account data to enhance their score. If a consumer has a low FICO® Score, or no score at all, they have a chance to increase their score, or establish one, based on data they share – allowing lenders to expand access to credit through their financial inclusion initiatives.
- At FICO® World 2023, banking simulation specialists BankersLab® (bankerslab.com) will host participants in a UltraFICO® Simulation Challenge that will run during the event. This friendly competition allows participating lenders to experiment with the UltraFICO® Score in a “what-if” simulation which aims to challenge expertise and knowledge of alternative data scores. Overall, participants will learn how harnessing open banking data through the UltraFICO® Score can drive financial inclusion initiatives and portfolio profitability at the same time.
“We’re hearing positive feedback from our dealerships in our indirect channel now that we’re able to help more younger applicants with auto lending assistance compared to some of our competitors,” said
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail, transportation and supply chain, and many other industries. Using FICO solutions, businesses in nearly 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of rental cars are in the right place at the right time.
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