19/07/2024 | Press release | Distributed by Public on 19/07/2024 22:17
For those of us old enough to remember the September 2008 financial crisis, the movie Margin Call is a fascinating, art-imitating-life financial drama. It takes place at an unnamed investment bank the night before the mortgage-backed securities sell-off and meltdown. Alarms go off at 10:00 p.m., when a junior member of the risk management team used analytics to discover that the firm's position in mortgage-backed securities was far over-leveraged; it will likely bankrupt the company unless immediate, drastic action is taken.
Six hours later the CEO, John Tuld, calls a 4:00 a.m. emergency meeting of the board of directors and top executives; Tuld asks his senior leadership how the company might best survive the impending financial carnage; his questions draw blank stares from his team. Frustrated, Tuld corners them with the question, "What have I told you since the first day you stepped into my office? There are three ways to make a living in this business: be first… be smarter…or cheat," quickly adding, "and I don't cheat."
It's a memorable line - and a handy recipe for success. In fact, I found that FICO Platform clients are winning by being first and smarter.
Speed is a formidable benefit in the financial services business. That's why "first mover advantage" is such an enviable position: being first enables a company to forge a strong market presence, use artificial intelligence, machine learning, and other new technologies to set the customer experience standard for others to follow, and grab market share among innovators and early adopters with groundbreaking products and services.
Here are 10 examples of FICO Platform helping clients work faster:
Of course, outsmarting the competition is the end-goal of digital transformation, and is usually better than speed. Take an area like loan approvals: it's possible to use digital technologies to make approvals faster than other lenders, but not if it means cutting corners on analysis, which introduces the possibility of added risk. Speed and smarts together is the ideal combination - the highest, ultimate state of digital transformation - especially when they represent the combined domain expertise of your smartest team members, and their combined innovation.
Here are 10 examples of FICO Platform helping clients work faster and smarter:
FICO obviously does not advocate cheating; to the contrary, we are a leader in fraud detection and financial crime prevention.
We do, however, enjoy giving our clients undertaking their digital transformations an "unfair advantage" over their competitors, to leverage innovation and deliver exceptional business results. Is it cheating to bring innovative new products and services to market faster than your competitors? Or create new double-digital revenue streams, while others' growth is flat? Of course not.
The bottom line is that long before Margin Call was released, FICO has been instrumental in helping clients to make faster, smarter more profitable decisions, and apply innovation to achieve their digital transformation goals. Since the launch of FICO Platform, 130 of them are outpacing and outsmarting the others.
John Tuld would be very pleased.