RBI will use the analytic service to develop lending strategies across 15 countries.
According to the FICO, the FICO Economic Impact Service is a analytic service that helps lenders adjust their use of risk scores based on economic projections and lender-defined scenarios.
The service examines up to 150 different economic indicators, then scientifically calibrates credit risk estimates to expected market conditions, at the account level.
It also has the ability to build on both internally derived score models and standard credit scores, the FICO Economic Impact Service provides lenders with an insight into the changing nature of risk under different economic conditions.
RBI tested the FICO Economic Impact Service on personal loans in Eastern Europe. The FICO Economic Impact Service allowed RBI to overlay macro-economic information on top of their traditional credit scoring system, adjusting their risk scores based upon recent and projected economic conditions and thereby improving profit per account, claims FICO.
FICO vice president and managing director for Europe, the Middle East and Africa Mike Gordon said the FICO Economic Impact Service is a stress test of consumer credit risk at the borrower level, and Raiffeisen Bank International is using this breakthrough in credit scoring technology to do proactive customer management and fuel ambitious growth plans.
