Equifax, FICO launch Data Decision Cloud

[TimFlorida]

Layman's terms?

https://www.zdnet.com/article/equifax-fico-launch-data-decision-cloud-as-credit-scores-meld-with-mar...

[kerplunk]

That looks like a paid sponsorship article.

The translation is Equifax and FICO are going to be able to sell more of your data to other companies.

[Revelate]

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@kerplunk wrote:

That looks like a paid sponsorship article.

The translation is Equifax and FICO are going to be able to sell more of your data to other companies.

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+1, just another revenue angle.

It'll be interesting to see what the adoption rate is on something like this, it's not for everyone vis a vis the bank I concurrently consult at chases leads based on net worth rather than credit score basically so lead generation based on these analytics aren't that relevant for example.

The large lenders already have a sophisticated analytics department which may well rival FICO's frankly: there's tons of money sloshing around the big 5 banks and they've been working on the issues for years.

Where it might be interesting is in smaller regional banks that are trying to grow: data analytics isn't easy, and the signal to noise ratio is abysmal right now because many companies haven't figured out how to clean it up; as a result maybe there's some inroads into a slightly different market space for FICO and Equifax both but I'll wait to see what it really winds up being before passing judgement especially as it wasn't quite clear on the data sharing between Equifax and the FI frankly... actually that may be a salient point too, the lender data that's injested may possibly be used elsewhere too in the Equifax business model but with increasingly challenging privacy laws it's hard to say how that will play out:

CCPA could well be happy fun times for consumers, not so much for every company that does business in Cali for example.

[Anonymous]

This is from an interview with the Chief Analytics Officer at FICO:

" When it comes to analysing Big Data, we are also creating data. We leave a digital footprint all day long, just like sensors do. We leave clickstreams, we execute transactions online, we post to social media, etc. Each of creates a stream of data, and if you put all this data together you do get a very rich network — an Internet of People — that can be analysed for insights not just on individuals, but on general patterns and trends." Link to interview (2014)

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They need as much data as possible from many different sources to find these patterns and trends. The Artificial Intelligence/Machine Learning (AI/ML) algorithms are used to detect possible predictors.

The algorithms may find that those people who regularly wake up in the middle of the night that make between 65,000 and 120,000 yearly, have a gym membership, drive cars less than 4 years old, post on social media regularly, donate to certain charities, have a certain aggregate profile of contacts in their phone, and a combination of 178 other various data points on their profile are the ideal client/customer for a certain type of business.

Anything and everything might help spot those predictors:

Study: Personal health app data is being leaked to credit companies

"Per the report, the data would sometimes be used for advertising, other times for something related to credit reporting. Only one credit reporting agency, Equifax,  had an agreement with a third party, which isn’t the best news since it suffered one of the largest hacks in recent history."

[Anonymous]

TimFlorida ... nice catch, now what does it say? Glad other posters explained some of the happenings in the market place. Maybe this is a lot of marketing fluff so companies get excited and sign on the dotted line?

[CreditInspired]

At first I was going to ask someone to explain this article to me like I’m a 5th grader. After reading other posters’ intelligible comments, it makes a lot more sense that the article was more of a fluff piece—well to me anyway.