Based on the FICO 8 Score, the new service offers a highly predictive general risk score designed specifically for the Canadian market.
According to FICO, validation tests are occurring now, and they indicate customers will receive three-to-five times the incremental improvement in risk prediction typically generated by an enhanced scoring model.
According to the company, the service will be available for full implementation in March 2011.
The new version of the FICO Score adapts the latest predictive analytics technologies and scoring blueprints from FICO to the specific dynamics of the Canadian market.
With TransUnion’s database, covering the entire Canadian credit population, the new score captures the latest risk patterns and offers more predictive risk assessment, especially in support of new account originations, new-to-credit populations and line-of-credit portfolios.
The FICO 8 Score evaluates line of credit accounts separately from other revolving credit instruments-like credit cards-since consumers use these products differently, said the company.
In addition, the score evaluates consumers with relatively few credit accounts differently from consumers with more mature credit histories, in order to improve risk identification. Clients can easily upgrade to the new version of the FICO 8 Score to take advantage of the added features and performance.
