FICO has released a new product to help lenders figure out which consumers are most financially resilient and therefore better able to weather a financial crisis; called the Resilience Index, ten years in the making, it scores consumers on a rating of 1 to 99 with lower scores being better; it looks at length of credit history and in particular credit utilization to determine this new index score; Jim Wehmann, executive vice president of FICO Scores, said, “We now can predict which consumers are best positioned to withstand a downturn and which ones are not so well positioned. The FICO Resilience Index can allow lenders to keep credit flowing to even low FICO scorers and below-average FICO scorers who we can identify for the very first time that they are resilient.” Washington Post.
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.