Exploring Consumer Credit Risk and Resilience

Host Lance Braun (FICO Score, Marketing), discusses consumer credit risk and resilience, as well as the background, development and applications of the FICO® Resilience Index with guest David Binder (FICO Score, Product Management)

1. The FICO® Resilience Index can allow financial institutions to discover and manage latent risk within groups of consumers bearing similar FICO® Scores, without cutting off access to credit for resilient consumers
2. Leveraging traditional consumer credit data, it is designed to rank-order consumers by their sensitivity to a future economic downturn
3. It offers a simple, powerful complement to the FICO Score for an array of use cases.
4. In today’s uncertain environment, with increases in interest rates, job losses, and rising inflation, institutions should seek greater insight into consumers’ resilience to market downturns.