LAS VEGAS, Oct. 22, 2018 /PRNewswire/
-- Experian®, FICO® and
Finicity® announced a new credit score today during the
Money 20/20 USA conference. The
new score, called UltraFICO™ Score, leverages account aggregation
technology and distribution capability from Experian and Finicity
to help consumers improve access to credit by tapping into
consumer-contributed data, such as checking, savings and money
market account data, that reflects responsible financial management
activity.
With UltraFICO™ Score, a consumer grants permission to
contribute information from banking statements, including the
length of time accounts have been open, frequency of activity, and
evidence of saving, which can be electronically read by Finicity
and combined with consumer credit information from Experian to
provide an enhanced view of positive financial behavior.
Experian, FICO and Finicity estimate this new score has the
potential to improve credit access for the majority of Americans
and is particularly relevant for those who fall in the grey area in
terms of credit scores (scores in the upper 500s to lower 600s) or
fall just below a lender's score cut-off. Consumers who are
relatively new to credit with limited history or those with
previous financial distress that are getting back on their feet
stand to benefit the most.
"This changes the whole dynamic of the lender and customer
relationship," said Jim Wehmann,
executive vice president, Scores, at FICO. "It empowers
consumers to have greater control over the information that is
being used in making credit risk decisions. It also enables a
deeper dialogue between the consumer and lenders to help both
parties make better financial decisions. It's a game
changer."
The UltraFICO™ Score will launch as a pilot program in early
2019. The pilot is designed to validate the score and assess
willingness of consumers to share financial data for a potentially
higher score. Pilot participants were sourced across various lines
of businesses.
The model developed by FICO will be implemented through Experian
and integrated into a lender's existing operational workflow.
Borrower data will be aggregated through Finicity. The UltraFICO™
Score builds off of the framework of the base FICO® Score, and
is designed to reflect the same odds-to-score relationship so
that the new score can be easily incorporated into lending
strategies and origination, account management systems. The
UltraFICO™ Score is slated to be broadly available to lenders
mid-2019.
"As the consumer's bureau, our goal is to help empower consumers
and to give better access to credit for more consumers, all while
promoting fair lending," said Alex
Lintner, president, Consumer Information Services, Experian.
"Through this project, we've found a new way to use
consumer-permissioned data that allows lenders to make better
decisions and helps consumers gain access to credit."
"This approach allows Americans to benefit from positive
financial behaviors," said Steve
Smith, CEO, Finicity. "We are proud to have created a new
way for consumers to share financial information, safely and
securely so that a new UltraFICO™ Score can be created."
To learn more visit: www.fico.com/en/products/ultrafico-score or
www.fico.com/ultrafico
Also, join Experian, FICO and Finicity at this year's Money
20/20 USA keynote discussion
entitled, "New Frontiers in Credit Risk Scoring for a
Customer-Centric Era" on Oct. 24
at 10:55 a.m. PT.
ABOUT EXPERIAN
Experian is the world's leading global
information services company. During life's big moments – from
buying a home or a car, to sending a child to college, to growing a
business by connecting with new customers – we empower consumers
and our clients to manage their data with confidence. We help
individuals to take financial control and access financial
services, businesses to make smarter decisions and thrive, lenders
to lend more responsibly, and organizations to prevent identity
fraud and crime.
We have 16,500 people operating across 39 countries and every
day we're investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at http://www.experianplc.com/ or visit our
global content hub at our global news blog for the latest
news and insights from the Group.
ABOUT FICO
FICO (NYSE: FICO) powers decisions that
help people and businesses around the world prosper. Founded in
1956 and based in Silicon Valley, the company is a pioneer in the
use of predictive analytics and data science to improve operational
decisions. FICO holds more than 185 US and foreign patents on
technologies that increase profitability, customer satisfaction and
growth for businesses in financial services, telecommunications,
health care, retail and many other industries. Using FICO
solutions, businesses in more than 100 countries do everything from
protecting 2.6 billion payment cards from fraud, to helping people
get credit, to ensuring that millions of airplanes and rental cars
are in the right place at the right time.
Learn more at http://www.fico.com
FICO is a registered trademark of Fair Isaac Corporation in the
U.S. and other countries.
ABOUT FINICITY®
Finicity's mission is to
help individuals, families and organizations make smarter financial
decisions through safe and secure access to fast, high-quality
data. The company, which launched its first financial product in
2000 and has since grown to provide financial data APIs, credit
decisioning tools and financial wellness solutions, partners with
influential financial institutions and disruptive fintech providers
alike to give consumers a leg up in a complicated financial
world. The company has developed more than 15,0000 bank,
wealth management and credit card integrations, giving it broad
market coverage and utilizes advanced analytics and data
intelligence to deliver rich financial insights. Finicity
received recognition from American Banker in it's 20 Best Fintechs
to Work For list, it was awarded API World's 2016 Finance API of
the Year and is a 2018 HousingWire Tech100 winner. To learn more or
test drive its API, visit www.finicity.com.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/experian-fico-and-finicity-launch-new-ultrafico-credit-score-300734937.html
SOURCE FICO; Experian; Finicity