Stephanie Covert, Executive Vice President of Software at FICO, recently shared insights on the company’s transition to an AI-enabled platform in a highly regulated industry and discussed her unique women’s leadership program, which has resulted in 70% of participants expanding their roles and over a third receiving promotions. Below is a refined and detailed overview of the conversation.
### Overview of FICO
FICO, a global analytics software company founded in 1956, is recognized primarily for pioneering the first commercial credit scoring system. The company operates with two main business lines: the FICO scores business, prominently known for the FICO credit score in the United States, and the software business, which provides analytics-powered solutions to assist clients in managing decisions throughout the credit risk lifecycle. For instance, during the card origination process, the FICO platform aids banks in evaluating the credit risk of consumers applying for credit cards.
### Transforming to an AI-Enabled Platform
Covert leads a significant transformation at FICO towards an AI-centric approach. This shift is motivated by a growing demand for personalized customer experiences. As banks faced increased customer expectations, especially during the pandemic's push to digital interactions, the lack of a comprehensive view of the customer became a challenge. Covert emphasizes that organizations require a holistic perspective of customer data to optimize every interaction and build loyalty.
Instead of focusing solely on single-point solutions, Covert’s team is integrating years of innovation from standalone applications into a unified Software as a Service (SaaS) platform. This allows clients to quickly develop new services and solutions that enhance customer interactions, creating a feedback loop that continually improves the customer experience.
### Building the AI Platform
FICO's AI platform is built on Amazon Web Services and combines open-source technology with proprietary innovations, resulting in unique capabilities that differentiate it in the marketplace. The platform serves over 100 top-tier banks globally and supports a variety of functionalities.
Many customers leverage the platform for analytics-enhanced decision-making, whether it’s to streamline credit originations, improve customer management, or develop effective marketing strategies. By integrating artificial intelligence into its solutions, FICO enables clients to operationalize their AI projects and ensure they deliver value effectively.
### Challenges and Solutions in AI Deployment
Covert notes that one of the most significant challenges faced by banking clients is successfully transitioning AI from development to production. Statistics indicate that approximately 90% of AI projects fail to generate the anticipated value, mainly due to operationalization difficulties. FICO addresses this by facilitating data integration from multiple sources and assisting in the monitoring and ethical application of analytics.
### Perspectives on Alternative Data
While some fintech startups utilize non-traditional data, like social media profiles, to assess creditworthiness, Covert maintains that historical credit data remains the most reliable indicator. However, FICO supports the use of alternative data, particularly when customers have provided consent for its use. The aim is to enhance the credit decision-making process while ensuring ethical and fair results.
### Promoting Women in Leadership
Covert is passionate about empowering women in leadership roles through a specialized program that focuses on personal growth and authentic leadership skills. The initiative has fostered a strong community of women at FICO, with a significant percentage experiencing job expansions and promotions post-program.
Covert identifies several barriers to gender diversity in technology, including a lack of diverse leadership role models and the need for more mentorship opportunities for women. She advocates for creating supportive, unbiased environments that allow everyone to thrive and emphasizes the importance of leveraging women's empathetic leadership qualities.
This multifaceted discussion underscores the transformative role of AI in financial services, the proactive steps FICO is taking to navigate industry challenges, and the vital importance of fostering diversity and inclusion within technology leadership.
Ranking
