Source: Fair Isaac
Fair Isaac Corporation (NYSE:FIC) and Magnum Communications, Limited today announced that Magnum will distribute Fair Isaac's FICO Expansion credit risk score to financial institutions.
FICO Expansion score assesses the credit risk of consumers who have minimal or no credit history on file by tapping non-traditional sources of consumer data not found at the national credit reporting agencies. By using FICO Expansion score for these consumers - including recent immigrants and young adults - businesses can make more financial services available to more people who have missed out on opportunities simply because they lack a traditional credit history.
"Through this strategic relationship with Fair Isaac, Magnum clients gain a new tool for making better decisions and confidently expanding into the traditionally credit-underserved market," said Carl Eikhoff, CEO for Magnum. "Lenders of all sizes can use Magnum's powerful technology solutions and services to easily tap into the widely respected FICO scoring services to make smarter credit risk decisions."
Under the agreement, lenders will use Magnum's robust credit data acquisition system, CREDICHECK IV, and a secure web interface to access the FICO Expansion score. The scoring data has been pre-mapped to Magnum's RapUp data analysis tool, enabling Magnum to bring the score online quickly for easy client implementation.
"Industry results show that the FICO Expansion score delivers the same highly predictive, objective risk evaluation for credit-underserved consumers that businesses have come to expect from the industry-standard FICO score," said Tom Quinn, vice president of Global Scoring for Fair Isaac. "Providing access to our score through Magnum, a highly respected value-add platform provider, helps lenders quickly and confidently incorporate FICO Expansion score into their current origination decision strategies."
FICO Expansion score aligns with Fair Isaac's industry-standard FICO score for quicker adoption by lenders and combined coverage of as many as 50 million more American consumers than can be addressed by any competing credit risk model. Lenders nationwide are using FICO Expansion scores today to better control their risk when extending credit opportunities to new consumers.