FICO announced that it has partnered with Kredi Kayıt Bürosu (KKB), the Turkish credit bureau, to make collection scores widely available to Turkish credit grantors. These scores will promote responsible credit growth in Turkey by enabling lenders to improve their collections processes.
Turkey is experiencing rapid credit growth. According to the Turkish Banking Regulation and Supervision Agency, consumer loans and mortgages both grew by 22 percent from March 2013 to March 2014. However, this growth has slowed in 2014, and year-on-year growth in credit card receivables has fallen to single digits, in part due to new banking regulations.
To help lenders manage delinquent debtors, FICO is developing a collection score suite, which will predict the likelihood of a delinquent account rolling from one phase of delinquency to the next. Lenders will be able to use these scores to prioritize accounts for contact, and avoid contacting borrowers whose loans are overdue but who are expected to “self-cure.” Operations that adopt FICO® Collection Scores typically see a three-to-five percent lift in collections. The are expected to be available to Turkish lenders by the end of the year.
Source: FICO Press Release
