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FICO helps banks with offers

By Janna Herron · Bankrate.com
Friday, August 5, 2011
Posted: 2 pm ET

A new service from FICO may help you get more appropriateĀ credit card offers.

The creator of the most popular credit score on Tuesday unveiled its FICO Bankcard Growth Solution that helps credit card issuers respond faster to results from marketing programs. That means consumers like you will receive offers that are more relevant to your wants, says Andrew Jennings, senior vice president and chief analytics officer at FICO.

"The key is at the consumer level, the issuer will be able to present the right type of offer to the right type of consumer," Jennings said. "They will more quickly measure how price sensitive people are. If I do this, will you do that?"

Sounds a little spooky.

Still, Jennings said it will help issuers identify what potential customers want in a volatile economic climate where consumer habits are constantly changing.

Jennings said issuers are looking for new ways to generate money, especially after the Credit Card Accountability, Responsibility and Disclosure Act of 2009 banned certain profitable practices and fees. They have also shed many of their riskier borrowers after the recession to reduce losses and now are looking for ways to create revenue from their better-performing customers.

"They can just send out mailings and hope," he says. Or they can be a little more targeted.

So far, one major issuer is using the service, according to FICO, but it wouldn't name the company.

Tell me: Would you like more targeted credit card offers?

Follow me on Twitter: @JannaHerron

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