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FICO Economic Impact Index

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Include Projected Economic Conditions in Your Risk Decisions 

Lenders have expressed concern that risk performance changes over time, especially in light of rapidly shifting economic events. A revolutionary risk management tool is needed to better anticipate account and portfolio risk  as economic conditions change. Harnessing the power of the new BEACON  09® scores, FICO developed a new patent-pending analytic solution called FICO® Economic Impact Index (EII) to help lenders make more profitable lifecycle decisions by incorporating economically driven changes in credit risk into risk management strategies. 

FICO® Economic Impact Index

FICO® EII derives the empirical relationship between the BEACON 09 score’s odds-to-score relationship and changes in future macro-economic conditions. FICO® EII provides lenders with up to 6 anticipated economic scenarios* to project the expected odds-to-score outcome(s) under those pre-defined market conditions. With this information, lenders now have a tool they can use to determine the BEACON 09 score cutoff changes they could make to their strategies to retain more consistent risk estimates. FICO® EII allows lenders to manage decision objectives on an ongoing basis with better anticipation of the impact from changing economic environments. 

Enhanced Business Value = $5-15 Per Account Opened 

Validations demonstrate that using FICO® EII with BEACON 09 scores in economic downturns or growth cycles can help lenders substantially lessen the account level variation between expected and actual risk. Consequently, lenders can have greater control over portfolio loss and profitability to support stress testing and loss provisioning.

Depending on portfolio and market conditions, using FICO® EII to proactively adjust risk thresholds can save millions in loss and improve profitability by as much as $5-$15 per account opened. Results may vary depending on factors specific to your customer portfolio and credit policies. 

Increased Portfolio Profitability - FICO® EII, when used in conjunction with BEACON 09 scores and existing policies and scores, will allow lenders to refine credit decisions for new and existing accounts by proactively managing risk and loss as economic conditions change.

Portfolio Stress Testing and Loss Provisioning - Evaluating FICO® EII across multiple economic scenarios allowsfor better assessment of projected external risk dynamics and estimation of portfolio- and enterprise-level profitability and loss to free up provisioning capital for credit expansion and internal process improvements.


- 3-digit metric (positive or negative) delivered with each consumer BEACON 09 score
- Provides the degree and direction of the BEACON 09 score shifts
- Generated for 6 economic forecast scenarios* - Lenders may select 1 or all 6 outlooks.
- Delivered with BEACON 09 score (separate fees apply)
- Updated quarterly


FICO® EII can help lenders adjust portfolio risk in accordance with underwriting and acquisition targeting
as well as account decisioning. FICO®
EII can provide valuable insights by translating future changes in consumer risk to provide guidance on increasing or decreasing BEACON 09 score cutoffs depending on the selected economic scenario – ideally the one or more scenarios that most closely reflect your institution’s view.  Savings, if any, can vary depending on factors specific to your customer portfolio and credit factors. 

Planned Availability

Equifax is now offering FICO® Economic Impact Index for offline (batch) mode for archive testing, account management and pre-screening, as well as through FICO’s PreScore® Service. Online availability for originations/underwriting is planned for late April, 2010.

Contact Us Today
For more information on how to get started testing FICO® Economic Impact Index, please click here, or contact your Equifax representative or call 1.866.836.9885 

* Economic forecasts provided by Moody’s Analytics, Inc. 

Equifax, BEACON and PreScore are registered trademarks of Equifax Inc. Inform Enrich Empower is a trademark of Equifax Inc. FICO is a trademark of Fair Isaac Corporation. Copyright © 2010. Equifax Inc., Atlanta, Georgia. All rights reserved.


Why use Equifax

As the needs of our customers have evolved, so have we. Expanding on our role as the trusted steward of credit data, Equifax has grown into the leading provider of technology-and analytics-fueled information solutions.

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