Products & Services: Origination Credit Risk Models

Boosting profitability - Right from the start of the customer relationship

You have the best chance of detecting and mitigating risk in your application underwriting: 80% of measurable risk is decided upon at the time of origination. With decades of experience in developing models across all segments of financial services-and in markets around the world-Fair Isaac gives you the most advanced solutions for maximizing the effectiveness of your origination decision making.

No matter what portfolio, budget, time constraints or data you have, Fair Isaac can provide a model to improve your originations operations and boost portfolio profitability:

  • Reduce losses with empirical, consistent risk assessment.
  • Approve more applicants and increase profitability with
    risk-based pricing.
  • Streamline operations and cut decision time with faster application evaluation.
  • Implement models within days for immediate risk management of small, new or niche portfolios.
  • Ensure regulatory compliance and meet consumer and legal inquiries with score reason codes.

We develop custom origination 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 our Origination Models Work

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

These predictive origination models are delivered and embedded into operational processes, and are activated during origination 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 maximum 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" modeler is very familiar with predictive patterns in actual data.

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