Experian, FICO, and Finicity Launch the UltraFICO Score

Three fintechs joined forces today to create a new credit scoring technology designed for thin-file customers. Experian, FICO, and Finicity are the triumvirate behind the new score, named the UltraFICO score.

The UltraFICO score leverages consumer-permissioned account data aggregated and distributed by Experian and Finicity. Unlike the traditional FICO score, which relies heavily on repayment data from users’ previous credit usage, UltraFICO looks at how responsibly consumers manage their finances. After gaining the user’s permission to access their bank statements, Finicity’s technology pulls consumer-contributed data from their checking, savings, and money market accounts, examining the length of time accounts have been open, frequency of activity, and saving data.

For its part, Experian pulls the consumer’s credit information and will integrate the new model into lenders’ existing operational workflow. Alex Lintner, president of Experian’s Consumer Information Services, said that this project has offered the company “a new way to use consumer-permissioned data that allows lenders to make better decisions and helps consumers gain access to credit.”

Accessing the additional data not only offers lenders a more complete picture of the prospective borrower’s ability to repay, it also improves access to credit for Americans who are typically below lenders’ preferred credit score threshold. This especially applies to thin-file borrowers and those working on rebuilding their score after a financial crisis.

Jim Wehmann, FICO EVP of Scores, said that UltraFICO “empowers consumers to have greater control over the information that is being used in making credit risk decisions.” He added, “It also enables a deeper dialogue between the consumer and lenders to help both parties make better financial decisions.”

UltraFICO will be piloted in 2019 to test the new model and determine consumers’ willingness to share their financial data. The group plans to make the new model generally available to lenders in mid-2019.

Headquartered in Dublin, Ireland, Experian most recently demoed its decisioning platform at FinovateFall 2018. The cloud-based platform enables organizations to combine data and analytics to improve the accuracy of their customer lending decisions. Earlier this year, Experian acquired U.K.-based ClearScore for $385 million.

Founded in 1956 as Fair Isaac Corporation, FICO presented “Rapidly Deliver Contextually-Powered Stream Processing” at FinDEVr New York 2016. Earlier this month, the company announced it will provide KYC and onboarding solutions for Belarus-based lender, Belgazprombank.

Utah-based Finicity demoed at FinovateFall 2017 where the company’s Co-founder and President of Data Services, Nick Thomas, showed how the company simplified access to its Verification of Income and Verification of Assets reports. Frequently in the headlines, Finicity announced last week it was selected as third-party service provider for Freddie Mac’s automated income and asset assessment solution, Loan Product Advisor. In September, the company aligned with intelligent process automation software provider Capsilon to modernize the mortgage origination process.

Finovate Alumni News

On Finovate.com

  • Open Bank Project Collaborates with Open Source Software Company Red Hat.
  • Ondot Lands Strategic Investment from Citi Ventures.
  • Experian, FICO, and Finicity Launch the UltraFICO Score.

Around the web

  • Bloomberg TV features Best of Show winner Bumped.
  • Envestnet | Yodlee launches new suite of developer tools.
  • ThreatMetrix partners with SAS, bringing digital identity intelligence to machine learning to help creditors fight identity fraud.
  • Finastra introduces its cloud-based instant payments offering for SMEs.
  • Sberbank inks Memorandum of Understanding with SWIFT.
  • Artivest appoints new Chief Compliance Officer, Kamal Jafarnia.
  • Featurespace unveils its ARIC White Label solution for advanced fraud and risk prevention.
  • Finextra: Fidor and GFT extend partnership to the Americas markets.
  • Kony acquires innovation subsidiary of Umpqua Bank.
  • Finextra: NTT Data plans pan-Asian federated trade information platform based on blockchain.
  • SuperMoney surpasses $1 billion in financing requests
  • Bluefin and TokenEx partner to strengthen payment security with PCI-validated P2PE and omni-channel tokenization.
  • ID.me launches KYC / AML identity verification solution and ID document verification solution.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Global: Fintech News from Around the World

As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global: Fintech News from Around the World is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.

Latin America and the Caribbean

  • Banco Fassil is the first Bolivian company to migrate its ATM network to TranzAxis from Compass Plus.
  • Legal Tech News reviews the improved opportunity for investment in the Mexican fintech market.
  • Can blockchain technology fix Argentina’s financial crisis? VentureBeat considers the challenge.

Asia-Pacific

  • Siam Commercial Bank is the first bank on Ripple’s RippleNet to pioneer multi-hop, a feature that allows payment settlement on behalf of other financial institutions on the network.
  • Singapore and Hong Kong-based digital private banking clients of Credit Suisse now can communicate with their bank via Apple Business chat.
  • Singtel launches electronics payments alliance with a pair of Thailand-based partners.

Sub-Saharan Africa

  • South African fintech Centbee announces beta launch of its bitcoin cash wallet.
  • BitCoinke looks at funding for African fintech startups in 2018.
  • Fintech Association of Nigeria begins fintech learning series in partnership with the SEC.

Central and Eastern Europe

  • Sberbank to offer loans of up to RUB 300,000 without proof of income as part of new pilot program.
  • FICO to provide KYC and onboarding solutions for Belarus-based lender, Belgazprombank.
  • Alfa Group of Russia plans to launch online insurance company, Mango.

Middle East and Northern Africa

  • Cameroon’s biggest bank, Afriland First Bank, to deploy Temenos’ T24 core banking platform.
  • Qatar Islamic Bank to leverage solutions from Volante Technologies to help meet PSD2 and open banking standards.
  • ICS Financial Systems completes blockchain proof of concept for Arab Jordan Investment Bank (AJIB).
  • Tunisia’s Banque de l’Habitat (BH) selects Temenos’ T24 core banking system.

Central and South Asia

  • KPMG releases its latest report: Fintech in India: Powering a Digital Economy.
  • Paytm secures 33% market share of UPI payments in India.
  • Medici looks at the state of financial inclusion in India.

Top image designed by Freepik

Finovate Alumni News

On Finovate.com

  • Larky Lands Three: Mobile Engagement Platform Adds New CU Partners.

Around the web

  • Larky launches with Encompass Credit Union (Canada), BayCoast Bank (MA), and Oklahoma Central Credit Union (OK)
  • Insuritas announces partnership to launch digital insurance agency platform for 3Rivers FCU.
  • Fenergo creates new team to further develop and foster its partner ecosystem.
  • First Round Review analyzes Gusto’s brand.
  • Coast to Coast Motors dealership strikes deal with PayNearMe.
  • BlueRush announces partnership with Microsoft Azure.
  • FICO to provide KYC and onboarding solutions for Belarus-based lender, Belgazprombank.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • eToro Adds IOTA Cryptocurrency to Platform.
  • First Data Partners with Ellie Mae to Improve Security of Lending Payments
  • Check out our latest FinovateFall Sneak Peek featuring ebankIT.

Around the web

  • UMB Fund Services adopts Temenos tech for ETF drive.
  • EMIDA joins wireless independent dealer association.
  • InSpirAVE earns spot in Top 100 at the Innovate Celebrate Conference’s Startup of the Year competition.
  • Data-in-use security specialist Enveil announces technology integration with Gemalto.
  • Onfido adds new VP of Global Marketing, General Counsel, and Director of People.
  • FICO extends partnership with Equifax Canada.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • BizEquity Brings its Valuation-as-a-Service Solution to TD Bank.

Around the web

  • FICO to offer free cybersecurity ratings to companies via its FICO Enterprise Security Score Portrait solution.
  • NICE Actimize covers P2P payments within its Fraud Essentials Cloud solution.
  • Global Debt Registry launches its loan registry on the IBM Blockchain Platform.
  • Harmonic Fund Services goes live with loan servicing technology, Fusion Loan IQ, from Finastra.
  • Gro Solutions names digital consulting firm Xtensifi as a certified development partner.
  • Kony accepted as a member in Jack Henry’s Symitar Vendor Integration Program.
  • NIIT Technologies ranked number one in ‘Business Understanding’ by clients in the 2018 UK IT Outsourcing Study.
  • 3rd-eyes selected for Swiss National Fintech Team.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate

  • Pindrop Security Partners with Bank of the West.
  • InComm Acquires Gift Card Impressions.
  • Trustly Brings New Payment Options to Alpha Fintech’s AlphaHub Platform.

Around the world

  • Algomi hires Scott Eaton, former EMEA COO at MarketAxess, as its new CEO.
  • Envestnet | Yodlee launches AI FinCheck. an AI-powered financial wellness assistant for financial service professionals.
  • FICO and Equifax partner to launch FICO Risk and Affordability Decision Suite powered by Equifax to help banks measure repayment risk.
  • Dashlane integrates with new Apple Security API rolling out in iOS 12.
  • WSJ features Coinbase’s move into Japan.
  • LendKey names Lewis Goldman Chief Marketing Officer.
  • VyStar CU leverages technology from Fiserv to power its mobile banking app.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Tradeshift Raises $250 Million in Round Led By Goldman Sachs.
  • VASCO Rebrands as OneSpan to Focus on Secure Onboarding.
  • Signifyd Takes in $100 Million in Series D Funding.

Around the web

  • Compass Plus announces new partnership with Payhuddle Solutions in Asia Pacific.
  • FICO to help Raiffeisen Bank accelerate digital transformation.
  • Fidor appoints Adam Woolford as Chief Information Officer.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Blend, Roostify Earn Honors at MBA Insights 2018 Tech All-Star Awards.
  • Qapital’s Latest $30 Million to Fuel New Roboadvisory Tools.

Around the web

  • FICO boosts financial crime protection with new suite of solutions.
  • Ping Identity achieves ISO 27001 Certification.
  • Luxoft teams with Softbank Robotics America to bring its humanoid robot Pepper to life.
  • MicroStrategy releases 3 new gateways to Microsoft Azure.
  • Woleet, a blockchain-based timestamp and signature app, is now available on Ledger Nano S.
  • Grubhub partners with PayPal’s Venmo on bill-splitting feature.
  • Avoka sees positive trends for North American banks in its 2018 State of Digital Sales in Banking Report.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Basisbank to Deploy FICO’s Rules Management System, Blade Advisor

Denmark-based online lender Basisbank is implementing FICO’s Blade Advisor rules management system to “control credit risk and accelerate its digital transformation”, according to the vendor, reports Tanya Andreasyan of Banking Technology (Finovate’s sister publication).

“As a fintech, we need to be fast and responsive to customer demands, while maintaining strong risk management,” said Morten Larsen, head of business development at Basisbank. “We need to give our risk analysts the maximum flexibility to make changes quickly, not wait in a queue for IT to make changes. In our review of the market, FICO provided the most powerful and flexible solution, and also has the greatest expertise in financial services.”

Basisbank was founded in 2000. It offers simple banking and finance products consumers direct to market and at point of sale at retail partners and car dealers. Today, it has over 90,000 customers and partners with 700+ retail shops and automotive dealers. It says that more than 75% of its credit applications come from mobile devices.

FICO’s Shalini Raghavan (Senior Director, Product Management) and Tom Traughber (VP, Chief Architect, Product Development). presented “Rapidly Deliver Contextually-Powered Stream Processing” at our developers conference, FinDEVr New York 2016. The discussion focused on how FICO’s Decision Management Platform Streaming supports high volume, latency analytics for batch and stream sources.

Founded in 1956 and headquartered in Silicon Valley, California. FICO leverages predictive analytics and data science to improve operations ranging from risk management and fighting fraud to customer service. The company’s solutions are used by businesses in more than 100 countries.