FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today announced the general availability of FICO® Model Central Solution – a comprehensive offering to help banks and other organizations, including insurance, retail and health care companies, maximize the power of their predictive models and meet stricter regulations for model management.
Regulators such as the OCC in the U.S. and the international Basel Committee on Banking Supervision have been issuing more stringent analytic model mandates, trying to improve banks’ chances of long-term viability and success by demanding that existing and new models deliver the maximum predictive power to better manage credit risk. Banks are struggling to satisfy the volume of new regulatory requests and the demands for increased rigor around tracking and audit requirements. With limited IT and analytic resources, many are under pressure to improve overall financial performance while ensuring compliance with these new provisions.
FICO® Model Central Solution provides a complete environment for managing predictive models in a reliable, automated and integrated way. It presents a management dashboard of overall model health, alerting personnel to performance degradation so they can take action before business decisions are impacted. It also creates a standardized process for easy management and monitoring of models, which can number in the thousands for large lenders, and deploys new models quickly and efficiently – up to 50 percent faster – for improved time to value and return on investment.
Furthermore, FICO® Model Central Solution coordinates model validation, task tracking and management reporting, storing complete and annotated audit trails to satisfy compliance requirements. It integrates models from various programming languages into one environment, further saving time and IT resources. It also improves business outcomes dramatically with the integration of simulation and testing capabilities and optimization of decisions.
“Financial institutions globally are under tremendous pressure to comply with regulatory requirements around predictive model management and are demanding better solutions for validation, monitoring and reporting,” said Frank Bria, research director at TowerGroup, a Corporate Executive Board company. “Further, banks that institute an analytic environment with technology for more precise decisioning will be best positioned to compete.”
“No other offering on the market today takes as holistic a view of an organization’s model environment as FICO Model Central Solution,” said Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. “Combining rapid development and deployment, the rigor of audit tracking and decision optimization creates real value for our clients as they meet the challenges of regulatory audits and the need for increased precision in their lending decisions."
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