Intelligent decisions

What it is about

Ricardo Ribeiro, Head of Platform LAC at FICO, presented at the Third Breakfast Conference (February 2024) the next-generation capabilities of the FICO platform and the business results it aims to deliver. It is a presentation by a technology vendor.

The 19 slides start from the major changes in financial services and five trends among leading banks (personalized decisions with complete customer data, acquiring Generation Z customers with little data, responsible growth, use of transaction data, and automation with AI and machine learning). They then explain the platform approach, a use case, generative AI and quantified results.

Objectives

• Present the trends shaping leading banks in credit decisions and customer relationships.
• Explain the platform approach that connects marketing, onboarding, fraud and collections in a common decision cycle.
• Illustrate with cases and figures the impact of deciding with better data and machine learning models.

Key takeaways

1. Five trends: personalized decisions across the life cycle, acquiring Generation Z with limited data, responsible and proactive growth, use of transaction data, and automated digital decisions with AI and ML.
2. Generative AI would grow at a compound annual rate of 36% through 2030 and capture 55% of the AI software market, according to a cited Forrester report.
3. With transaction data and Open Banking, the case presented achieves more approvals without increasing risk and incremental limits 17% higher.
4. A cited Forrester study estimates for a single platform an ROI of 356%, a net present value of US$8.2 million and a loss reduction of US$3.3 million.
5. The result figures come from the vendor's cases and studies and should be read in that context.