Mexico launches FICO Score 4

Global analytics leader FICO (www.fico.com) launches FICO Score 4 Suite to broaden financial inclusion in Mexico and help lenders, insurance and service providers to extend access to credit to an additional 8 million eligible consumers.

The new score models are specifically designed to seamlessly incorporate the entirety of the credit file, making it ideal for Mexico’s large and dynamic population.  In partnership with Círculo de Crédito, in Mexico, FICO has redeveloped the FICO® Score using sophisticated machine learning modelling techniques to mine trends in recent consumer data to help lenders in Mexico predict consumer credit risk.

Delivering stronger predictive power, FICO® Score 4, based on Círculo de Crédito data, improves the assessment of a borrower’s likelihood to default by providing a numerical snapshot of a consumer’s credit risk.  The Score analyzes the information available on the credit bureau profile and produces a score in the range of 300-850 that is indicative of the future credit risk.  This precise risk prediction applies to decisions across financial industries, customer segments, credit products, and lifecycle phases – from origination to collections. FICO® Extended Score 4 builds on the foundational credit bureau, data used in the FICO Score® 4, but incorporates expanded data sources unique to Círculo de Crédito, allowing for more consumers to be scorable and expanding access to credit.

“In partnership with Círculo de Crédito, we are proudly bringing the dependability and industry-leading predictive power of the new FICO® Score 4 Suite to Mexico to expand access to credit in the region,” says Pablo Morales, Head of Latin America Global Partners & Alliances, FICO.  “This is the culmination of continuous work with our partners to innovate using the latest, most robust data science, and sophisticated artificial intelligence and machine learning model development techniques.  Our new models broaden financial inclusion by an additional 8 million scorable consumers in Mexico by leveraging new consumer credit information.”

Building off continued research, new data samples, and FICO’s state of the art analytic capabilities and predictive technologies in machine learning, FICO® Score 4 provides as much as 8.5% predictive lift over previous versions of the FICO® Score, while FICO® Extended Score 4 provides up to 18% predictive lift over previous versions of the FICO® Score.  These improvements in predictive power can help lenders safely avoid unexpected credit risk and better control default rates, while making more competitive credit offers to more consumers.

“Our goal at Círculo de Crédito is to generate credit conditions that promote financial well-being and trust between consumers and the industry, building better relations between credit providers and their beneficiaries, while helping companies and individuals better understand the information that will allow them to meet their economic and financial goals,” adds Juan Manuel Ruiz Palmieri, CEO, Círculo de Crédito.  “Through our partnership with FICO, FICO® Score 4 Suite has been developed and tested using our most recent data to address issues specific to regional lending practices, current consumer behaviours, and today’s credit environment to drive a responsible credit culture in the market.”

FICO® Score 4 and FICO® Extended Score 4 will help leaders identify opportunities for growth in their customer base, accurately manage organizational risk tolerance, increase profitability, and reduce losses, by bringing insights available from Círculo de Crédito to bear on credit risk decisions.