Analytics software firm FICO has partnered with risk analytics consultants 4most Europe to help European financial institutions comply with banking regulations.
4most said it will deliver FICO Decision Central software for analytic model governance to customers and provide consulting. Together, the pair have built Decision Central frameworks for Capital Requirements Regulation (CRR), Internal Ratings-Based (IRB) Basel approach and the European’s Central Bank’s Target Review of Internal Models (TRIM). FICO claims that these frameworks can cut the time needed to achieve compliance by up to six months.
“4most’s insight and experience have helped us tailor Decision Central to new regulatory demands, making it easier than ever for customers to deploy,” said Steve Hadaway, general manager for FICO in EMEA. “Our software and embedded frameworks can dramatically reduce the time and effort required to become compliant and demonstrate compliance.”
European regulations are making it increasingly important for financial institutions to document the decisions they make on customers, the factors that drove those decisions, and the performance of the analytic models used to make decisions. FICO Decision Central enables financial institutions to monitor and manage the evolution of every component that goes into making a decision.
Founded in 1956 and based in Silicon Valley, FICO uses predictive analytics and data science to improve operational decisions. It holds more than 180 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services.
4most Europe works with clients to develop bespoke services to better understand and manage their exposure to credit risk. On the regulatory side, it helps clients meet legislation and regulatory compliance, and works with them to foster greater understanding of the impact of recent and ongoing regulatory and global accounting changes.
Damien Burke, partner at 4most, added: “We have first-hand experience of regulatory projects where Decision Central would help define and deploy complaint processes more efficiently. The FICO software also makes ongoing compliance and interactions with auditors and regulators more effective, as all model governance information is centrally held and easily accessible.”
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