FICO and NBKI Data Reveal Russian Credit Health Strongest in Three Years

MOSCOW, March 5, 2012 /PRNewswire/ -- FICO (NYSE:FICO), the leading provider of analytics and decision management technology, and the National Bureau of Credit Histories (NBKI), Russia's leading credit bureau, today released data showing that Russians are managing their credit better than at any time in the last three years. The January 2012 FICO® Credit Health Index for Russia shows the highest mark since the index was established in October 2008, revealing a sharp and sustained decrease in credit risk since 2009.

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The FICO Credit Health Index measures the overall credit health of the country, based on the percentage of consumer loans and credit cards reported to NBKI that are delinquent by more than 60 days. Since October 2009, when this "bad rate" was 11.28 percent, the index has been steadily improving, and in January 2012 just 7.05 percent of Russian credit accounts were delinquent — a reduction of 37.5 percent.

"This improvement stands in contrast to the credit health problems that we see in many parts of Europe today," said Evgeni Shtemanetyan, who directs FICO's operations in Russia. "It is clear that Russia is not only recovering from the recession of 2008-2009, but also that the credit market here is rapidly maturing. The average Russian is becoming increasingly familiar with credit products and how to manage them well."

FICO and NBKI also studied the performance of eight regions in Russia separately. Each region shows a pattern similar to the overall trend, but some regions clearly outperform others. The Dalnevostochnyi region had the best overall credit health, while the Severo-Kavkazskii has improved the most since 2008.

FICO's latest report also demonstrates the strong relationship between the FICO Credit Health Index and the FICO Score. While the FICO^® Credit Health Index represents the credit wellbeing of the population measured over the previous six months, the FICO^® Score analyzes data from a consumer's credit report at NBKI to predict how well the consumer will pay their credit obligations over the subsequent months.

"This data not only validates the performance of the FICO Score, it shows how the population is changing over time," said Alexander Vikulin, CEO of NBKI. "By monitoring the relationship between the FICO Score and risk on their accounts, lenders can align their credit decisions with changes in the population's risk."

FICO and NBKI share this data with Russian lenders to improve their understanding of the market, and help them safely extend lending to Russian consumers. Russia is one of the fastest-growing credit markets, with the number of credit cards used by Russians rising by 26 percent in the first half of 2011.

About FICO
FICO (NYSE:FICO), formerly known as Fair Isaac, delivers superior predictive analytics solutions that drive smarter decisions. The company's groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO's innovative solutions include the industry-leading solutions for measuring credit risk, managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers 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 profits and meet regulatory and competitive demands. Learn more at www.fico.com. FICO: Make every decision count^™.

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SOURCE FICO