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Motor Finance Arm of South Africa's Nedbank Uses FICO Analytics to Stress-Test Auto Loan Portfolio Performance
LONDON, April 25, 2013 /PRNewswire via COMT EX/ -- FICO /quotes/zigman/226195/quotes/nls/f ico FICO +0.64% , a leading predictive analytics and decision management sof tware company, today announced that Motor Finance Corporation (MFC), part of the Nedbank Group in South Af rica, is using FICO analytics to predict the f uture perf ormance of its auto loan portf olio. T his project extends Nedbank's use of the groundbreaking FICO Economic Impact Service to manage lending decisions and regulatory compliance. For this initiative, MFC is using custom FICO Economic Impact Service models to study how the credit risk at dif f erent credit score bands would change under dif f erent economic scenarios. T he FICO models apply this analysis to both MFC's custom origination and behavior models and the EMPIRICA credit risk score at TransUnion, all developed by FICO. MFC are also using FICO's "grade migration" methodology to explore how current customers' credit risk scores would change under these scenarios as the economy changes. By understanding how specif ic economic variables could af f ect credit risk f or both new applicants and current borrowers, MFC can develop more accurate projections of credit risk and losses, and thus improve its capital management and regulatory control f unction. "We already rely on FICO analytics in our auto lending business, and this engagement gives us a dynamic way to f orecast loan perf ormance," said Francois van Rensburg, head of Credit Risk Modelling at Motor Finance Corporation. "FICO's sophisticated economic impact analytics will help us not only manage our capital better but also improve our reporting to South Af rican bank regulators." "We were an early adopter of FICO's innovative approach to economic modeling, and saw that it could also give us f urther control over our auto loan portf olio," said Hanlie Roux, who is the senior statistician f or Scorecards of the Retail Credit Lab. "FICO's team are consulting with us as we adopt this methodology in other parts of our business. We see our analytic partnership with FICO as a distinct competitive advantage." "Nedbank has an advanced analytics practice that really sets the bank apart," said Hayley Kershaw, general manager f or FICO in Europe, the Middle East and Af rica. "In the wake of a global economic crisis, we believe economic impact modeling should become standard practice f or credit risk management and capital management. Much of the lending industry will be playing catch-up with Nedbank." Nedbank's Hanlie Roux will present a session on "Adjusting Risk Scores with Macroeconomic Forecasts" at FICO(T M) World 2013, April 30-May 3 in Miami. For more inf ormation, visit www.f icoworld.com. About FICOFICO /quotes/zigman/226195/quotes/nls/f ico FICO +0.64% , f ormerly known as Fair Isaac, delivers superior predictive analytics solutions that drive smarter decisions. T he company's groundbreaking use of mathematics to predict consumer behavior has transf ormed entire industries and revolutionized the way risk is managed and products are marketed. FICO's innovative solutions include the industry-leading solutions f or measuring credit risk, managing credit accounts, identif ying and minimizing the impact of f raud, and customizing consumer of f ers with pinpoint accuracy. Most of the world's top banks, as well as leading

insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost prof its and meet regulatory and competitive demands. Learn more at www.f ico.com. FICO: Make every decision count(T M). For FICO news and media resources, visit www.f ico.com/news. Statement Concerning Forward-Looking Inf ormation Except f or historical inf ormation contained herein, the statements contained in this news release that relate to FICO or its business are f orward-looking statements within the meaning of the "saf e harbor" provisions of the Private Securities Litigation Ref orm Act of 1995. T hese f orward-looking statements are subject to risks and uncertainties that may cause actual results to dif f er materially, including the success of the Company's Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the f ailure to realize the anticipated benef its of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described f rom time to time in FICO's SEC reports, including its Annual Report on Form 10-K f or the year ended September 30, 2012 and its last quarterly report on Form 10-Q f or the period ended December 31, 2012. If any of these risks or uncertainties materializes, FICO's results could dif f er materially f rom its expectations. FICO disclaims any intent or obligation to update these f orward-looking statements. FICO and "Make every decision count" are trademarks or registered trademarks of Fair Isaac Corporation in the US and other countries. EMPIRICA is a registered trademark of TransUnion, LLC. SOURCE FICO http://rt.prnewswire.com/rt.gif ? NewsItemId=CG01377&Transmission_Id=201304250830PR_NEWS_USPR_____CG01377&DateId=20130425 Copyright (C) 2013 PR Newswire. All rights reserved /quotes/zigman/226195/quotes/nls/f ico Fair Isaac Corp. US : U.S.: NYSE $ 44.28 +0.28 +0.64% Volume: 201,879 April 25, 2013 4:03p P/E Ratio 18.30 Dividend Yield 0.18% Market Cap

$1.56 billion Rev. per Employee $300,689 /quotes/zigman/226195/quotes/nls/f ico Fair Isaac Corp. US : U.S.: NYSE $ 44.28 +0.28 +0.64% Volume: 201,879 April 25, 2013 4:03p P/E Ratio 18.30 Dividend Yield 0.18% Market Cap $1.56 billion Rev. per Employee $300,689 Find a Broker

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