FICO Rolls Out Package to Help CUs More Accurately Target Card Offers
The Fair Isaac Corp., the parent of the widely used FICO credit score, is emphasizing the ways some of its analytical tools can help credit unions and other card issuers better target their card offers.
In a white paper published to support its fresh approach, FICO said that the tools can help card issuers "adopt a more holistic, customer-centric view of the business; refine and sharpen customer segments; accelerate innovation in new products and sources of revenue and optimize capital allocation."
FICO tools can play an instrumental role in helping CUs avoid interest rate pitfalls in card issuance by helping them better predict their card members' behavior once he or she has a card, the company said.
Prior to the CARD ACT, card issuers could afford to be more general in their card offers, steering members to a card based on their general credit scores, Woodward maintained. Now, credit unions and other card issuers can use FICO tools to more accurately price their card offers from the beginning, potentially saving a great deal of money.