FICO teams up with Atto for Open Banking-informed credit scoring

A new partnership between analytics software company FICO and Atto, a provider of credit risk solutions using transactional data, will enable UK lenders to easily integrate Open Banking data into the credit scoring process.

Atto’s Open Banking technology, combined with FICO’s experience in transaction data analytics, means lenders can make more “targeted” risk decisions, based on predictive models built on Open Banking data.

The Atto Open Banking score, developed by FICO, is a transaction-based score that ranks consumers’ risk by analysing up-to-date consumer-permissioned current account and tradeline transaction data.

“We are excited to join forces with FICO to bring transaction-based predictive models to the forefront of the credit risk industry,” said Clare McCaffery, chief commercial officer at Atto.

“Risk managers can leverage these scores informed by Open Banking transactional data, giving them a to-the-second view of their customers.”

FICO has been developing scoring models using Open Banking data in other markets since 2018.

“This partnership represents a powerful combination of industry-leading expertise and cutting-edge technology, which can dramatically improve UK lenders’ ability to serve their customers with the right products and offers,” added Alexandre Graff, global head of global partners and alliances at FICO.

Open Finance data and payments platform Belvo formed a partnership with FICO last year, with the aim to expand access to credit across Latin America.

At the time, Graff said Open Finance data has the potential to be “a major component” of a country’s financial and economic ecosystem, as seen in Europe.