Fair or not, Fair Isaac has a lot to say about whether you get that loan approval. Also known as FICO, the company provides credit scores and risk management tools for businesses worldwide that include banks, credit card issuers, mortgage and auto lenders, retailers, insurance firms, and health care providers. FICO is the progenitor of the FICO Score, one of the most widely used scoring systems to determine borrowers' creditworthiness. FICO also provides software for managing decisions and, for consumers, online credit management tools. While the US accounts for nearly two-thirds of its revenues, the company operates globally in more than 90 countries.


FICO Scores are determined by using a secret formula, which the company tweaks as the economic landscape changes. The newest FICO formula reduces penalties for multiple accounts and is more lenient on occasional late payments, which don't necessarily indicate a poor credit risk. Additionally, authorized credit card users (such as teenagers on a parent's account) no longer benefit from activities of the account owners, which prevents artificial score inflation.

FICO's Applications segment generates more than half of the company's revenue and includes services such as direct marketing, account origination, customer management, and fraud control. In 2011 FICO launched its latest origination offering, Origination Manager, which enables lenders to better determine the creditworthiness of their customers. In 2012 it bought Adeptra, which provides a risk intervention platform for financial services clients and others, for some $115 million. The company's other segments are Scores, which provides business and individual credit scores; and Tools, which is used by businesses to build their own applications.

Financial Performance

The financial services industry accounts for the majority of FICO's sales, making the company vulnerable to the state of the economy. The financial downturn has impacted its revenues, which have been down since the onset of the crisis. However, earnings began climbing back up in 2011, with revenues growing 2% to $619.7 million and profits growing 11% to $71.6 million. Some of the drivers of that growth included the company's fraud prevention and lending originations offerings.


The company continues to invest in its data and technology capabilities as the need for accurate scoring systems has risen in the troubled economy. FICO also faces competition from VantageScore, a FICO-like credit scoring product launched by credit-reporting agencies EquifaxExperian, and TransUnion in 2006. The agencies established VantageScore as the credit markets began falling and an increasing number of subprime mortgages defaulted. FICO filed an antitrust law suit against the agencies but a jury rejected all of its claims in late 2009. Although Equifax, Experian, and TransUnion introduced VantageScore, they still use FICO scores as well. (The three agencies combined account for about a fifth of FICO's revenues.)

The company's strategy for growth includes expanding outside of the mature US market, especially into nations with developing economies. FICO is also focused on its decision management offerings, which are intended to help businesses automate and improve their decision-making processes. That push should allow the company to sell multiple products to its customers.

Mergers and Acquisitions

FICO in early 2014 purchased InfoCentricity, a California-based software-as-a-service-based predictive analytics software company. The move makes FICO the supplier of the broadest offering for predictive analytics modeling, both on the cloud and on-premise. It's leveraging InfoCentricity's Xeno model development software and Strategy Trees decision strategy software to add to the FICO Analytics Cloud.

In 2015 FICO acquired Germany-based TONBELLER, which provides protection against white-collar and financial crime through risk management and monitoring, analysis, and reporting. The purchase helps FICO as it moves into the growing financial crime and compliance (FCC) market.

▲ Show Less▼ Show Full Description

Fair Isaac International Corporation

200 Smith Ranch Rd
San Rafael, CA 94903-5551
Phone: 1 (415) 472-2211


  • Employer Type: Public
  • Pres: Thomas G Grudnowski

Major Office Locations

  • San Rafael, CA

Become a Vault Basic Member

Complete your Vault Profile and get seen by top employers