FICO and Achieve Partner to Power Brighter Financial Futures
Global analytics software leader FICO announced that digital personal finance company, Achieve, and its bank partner are leveraging FICO Score 10 T for its personal loan marketplace lending platform. With FICO’s most innovative scoring model, Achieve’s pre-implementation testing has shown a meaningful reduction in delinquency rates while expanding access to more borrowers, demonstrating the score’s ability to enhance lending decisions.
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“Our partnership with Achieve underscores how fintechs and lenders of all sizes can leverage FICO’s advanced scoring models to manage risk effectively and control default rates while safely expanding credit access with more competitive credit offers.”
Rising inflation has created financial strain for many consumers, increasing the demand for personal loans while also elevating the risk of defaults. By implementing FICO Score 10 T, which incorporates trended credit data to offer a comprehensive view of borrower behavior, Achieve and its bank partner expect to improve their risk assessment capabilities, with the goal of empowering more informed lending decisions and reducing delinquencies, without affecting approval rates.
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Achieve Personal Loans help individuals responsibly manage high-interest debt by consolidating revolving accounts into easy to manage, more consumer-friendly installment loans. The loans are originated by a bank partner on the Achieve Personal Loans platform. On a standalone basis, Achieve and its partner were able to see a 4% to 7% lift in predictive power over FICO Score 8 on different applicant segments.
“Implementing powerful credit assessment tools like FICOz Score 10 T helps the Achieve Personal Loans platform expand financial access to more consumers and stay at the forefront of consumer lending,” said Sudip Banerjee, vice president of credit risk and head of risk modeling at Achieve. “We believe implementing FICO Score 10 T in the Achieve Personal Loans platform will help reduce delinquency rates and allow us to serve our members with greater confidence.”
FICO Score 10 T’s ability to track payment patterns and credit usage over time helps identify borrower stability more accurately, providing lenders with deeper insights. This advanced scoring model not only supports Achieve’s mission to empower consumers but also demonstrates FICO Score 10 T’s range of applications and impact across the lending ecosystem.
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“FICO Score 10 T is delivering proven results across a variety of lending portfolios while delivering financial inclusion through innovation,” said Julie May, vice president and general manager of Scores at FICO. “Our partnership with Achieve underscores how fintechs and lenders of all sizes can leverage FICO’s advanced scoring models to manage risk effectively and control default rates while safely expanding credit access with more competitive credit offers.”
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Source: businesswire
