Products & Services: Behavior Models

Helping your predict the future behavior of existing accounts

Fair Isaac Behavior Models help you predict the risk, revenue, profit, attrition or other future behavior of existing accounts.

While Fair Isaac can develop models for businesses in a variety of industries, financial services providers have significantly improved profitability by applying our behavior models to many decision areas. For credit card issuers, behavior models are a key factor in the on-going management of credit lines, card re-issue, re-pricing, cross-selling and up-selling, delinquent and over-limit authorizations, and to some extent, collections.  Installment lenders use behavior models to preempt prepayments, enable cross-selling and up-selling, and to support refinance and collection decisions.

Fair Isaac can help businesses develop or apply behavior models regardless of how much data is at hand. We develop custom behavior models-which provide businesses with the most powerful predictive performance-when sufficient historical data is available, as well as pooled data models and expert models based on years of insight and expertise.

How and Why Behavior Models work

Fair Isaac's behavior models are offered via the company's Predictive Modeling services. Like all Predictive Modeling services models, behavior models analyze historical and transactional data to isolate patterns into algorithms or "models".

These predictive behavior models are delivered and embedded into operational processes, and are activated during account or customer decisioning. Whether you're new to modeling or selecting enterprise-class modeling systems, the modeling service is tailored to your analytic needs. There are 3 types of modeling services:

• Fair Isaac's Advanced Modeling Service is a highly customized analytic service that provides you with maximal ROI.  Advanced models are empirical models are built using statistical methods on actual performance data.  They provide the most powerful predictive performance when sufficient data history is available. The Advanced service leverages sophisticated analytic technology and innovations from the Fair Isaac R&D Lab, and enables you to take advantage of your unique portfolio and assets. 
• Fair Isaac’s Express Modeling Service is an efficient, high quality analytic service that quickly provides you with powerful empirical models based upon the Express model design framework. Express simplifies the model design process while leveraging Fair Isaac’s proven modeling methodology to deliver quality models backed by customized support options.  Fair Isaac believes in defining quality from your point of view and the Express service delivers empirical modeling solutions tailored to your specific needs, whether you are a sophisticated analytic user looking to augment your in-house team resources, or relatively new-to-models looking for efficient, quality empirical models. Clients of the Express service typically experience profitability improvements of 15%-40% over judgmental decisioning, or 5%-15% over dated empirical models.
• Fair Isaac's Expert Modeling Service is an analytic service that enables you to take advantage of predictive models quickly, even when there is little or no data available.  In addition to rapid efficiency and profitability improvements, you can also receive support for data capture and migration to empirical models. Expert models are developed from the expertise of modelers who have built many empirical models in the past, but are customized to the population, portfolio and data source in question.  Although it is not derived from actual data, the "Expert" is very familiar with predictive patterns in actual data.

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