Shop Direct Group extends its use of FICO analytics
The custom-designed service will help the retailer to ‘extend credit safely in a changing economy’.
The UK’s largest online and home shopping retailer, Shop Direct Group, will include FICO analytics models that assess how economic changes would affect its portfolio risk and help the retailer maintain a consistent risk level through cycles of economic change.
The analytics are designed to help the retailer understand how changes in the UK economy would change the risk levels of individual customers, and the risk of its credit portfolio. With these actionable assessments, Shop Direct Group can test portfolio sensitivities and adjust its credit offers and policies both nationally and at the regional level, in order to match its risk appetite.
The FICO Economic Impact Service is a patent-pending analytic service that helps lenders adjust their use of risk scores based on economic projections and lender-defined scenarios. The service examines up to 150 different economic indicators, then scientifically calibrates credit risk estimates to expected market conditions, at the account level.
“The ‘new normal’ for leading credit grantors today is adaptation to change,” said Mike Gordon, FICO vice president and managing director of Europe, the Middle East and Africa. “Shop Direct Group joins a select group of EMEA business leaders that are using economic impact analytics to safeguard their business and their customers.”
Gavin Merriman, Group Head of eCommerce Strategy at Shop Direct Group, will be presenting a speech tiltled ‘Driving ROI Through Evaluating Your Key Mobile Retailing Options’ at the Retail Bulletin’s Mobile Retailing Summit 27th September 2011. For me details and to register, click here.
