Hyundai Card, a joint venture between Hyundai Motor Group and GE Capital, has selected FICO Transaction Scores to strengthen its risk management and marketing programs. FICO is a US-based provider of analytic, software and data management products and services.
FICO Transaction Scores are based on a customer’s card usage patterns and updated with every transaction authorization, to yield a more precise and current assessment of customer risk and purchase behavior that can be used to target cardholder decisions, claims FICO.
Hyundai is running the FICO Transaction Score models on the FICO Falcon Fraud Manager 6 scoring engine. This is the latest version of the Falcon platform for analyzing transaction data.
FICO is building transaction-based risk, attrition and marketing models for Hyundai. Attrition models will provide early indicators of a cardholder’s risk of switching cards based on changes in purchasing or usage behavior. Hyundai can then make more targeted offers designed to retain key customers. Transaction data will also help identify cardholders who will be most interested in Hyundai’s card loan for large purchases, and other credit products.
Byung Kim, vice president and chief risk officer of Hyundai Card, said: “Our goal is to grow our business by retaining the best customers, rewarding them for their loyalty and tailoring our products to them. We see FICO Transaction Scores as an effective analytic solution for striking the right balance between risk management and marketing.”
David Lightfoot, vice president of product management at FICO, said: “Growth in the card business today is a matter of strengthening risk controls on the one hand and capturing a larger share of wallet on the other. The selection of FICO Transaction Scores gives Hyundai the increased analytic power to do both more effectively.”