Core Insights - The Zacks Premium service provides tools and resources to help investors make informed stock market decisions and invest with confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2][7] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings [4] - The Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points for investments [5] - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the highest probability of success [9][10] Company Spotlight: Fair Isaac Corporation (FICO) - Fair Isaac Corporation, known as FICO, is rated 3 (Hold) on the Zacks Rank with a VGM Score of B, making it a potential candidate for growth investors [11] - FICO's Growth Style Score is A, indicating a forecasted year-over-year earnings growth of 24.7% for the current fiscal year [11] - Recent analyst revisions have increased FICO's earnings estimate for fiscal 2025 by $0.19 to $29.61 per share, with an average earnings surprise of +2.2% [12]

Core Viewpoint - The introduction of Buy Now, Pay Later (BNPL) loans into credit scoring by FICO will begin impacting consumer credit scores starting in fall 2025, marking a significant change in how these loans are perceived in the credit landscape [2][3][7]. Group 1: Overview of BNPL Loans - BNPL loans allow consumers to make purchases in installments, typically with little to no interest and without hard credit checks [4]. - Major BNPL providers include Affirm, Klarna, Afterpay, and PayPal Pay Later, which offer flexible payment options at checkout [5][10]. Group 2: Impact on Credit Scores - Previously, BNPL loans did not affect credit scores as they were not reported to credit agencies, allowing consumers to use them without impacting their credit history [6][11]. - FICO's new scoring models, FICO Score 10 BNPL and FICO Score 10 T BNPL, will incorporate BNPL data, but lenders will need sufficient data from BNPL providers before these scores can be utilized [8][9]. Group 3: Expected Changes and Consumer Behavior - The impact of BNPL loans on credit scores is expected to be similar to opening a new account, with scores potentially improving or decreasing by about 10 points for most consumers [12]. - The effect on individual credit scores will vary based on the consumer's overall credit profile and the specifics of their BNPL loans [13]. Group 4: Consumer Usage Trends - A significant portion of BNPL users are utilizing these loans for essential expenses, with 47% using them for groceries and 35% for medical bills, raising concerns about the financial health of these consumers [14][15]. - Nearly half of BNPL users have missed at least one payment, indicating potential risks associated with increased reliance on these financial products [15].

Core Insights - Only 11% of executives believe their bank is highly advanced in hyper-personalization [1] - 72% of executives acknowledge that their customer communication channels are siloed or only partially integrated [1] - 50% of executives report that no more than half of their customer-facing decisions are automated [1] Industry Challenges - Banks in the Asia Pacific region are facing significant challenges in delivering real-time, tailored customer experiences [1] - The lack of advanced hyper-personalization capabilities indicates a gap in meeting customer expectations [1] - Integration issues in communication channels hinder effective customer engagement [1]

Core Insights - Gen Z has experienced the largest decline in credit scores among all age groups over the past year, primarily due to student loan debt [1][2][5] - The national average credit score has decreased by two points to 715, while Gen Z's average score has dropped three points to 676 [1][2] Credit Score Context - A credit score, which ranges from 300 to 850, is a mathematical formula used by lenders to assess the likelihood of loan repayment [2] - 34% of Gen Z consumers have open student loans, significantly higher than the 17% of the total population [2] Economic Factors - The U.S. Department of Education paused federal student loan payments in March 2020 due to the pandemic, with a grace period extending until October 2024 [3] - The Trump administration has restarted the collection process for outstanding student loans, affecting approximately 5.3 million borrowers in default [4] Challenges for Young Consumers - Young consumers face difficulties in making timely payments due to student loans, a challenging job market, and high inflation [5] - A low credit score complicates access to various financial services, including car loans, mortgages, and insurance [5] Potential for Improvement - Despite the challenges, younger consumers have the most potential for credit score improvement [6] - Experts recommend that individuals should regularly check their credit scores to better understand their financial standing and take necessary actions [6][7]

Group 1 - Swisscard has extended its partnership with FICO to enhance its credit limit strategies [1] - The collaboration will leverage FICO® Platform's AI-powered decision optimization capabilities [1] - The partnership aims to provide greater flexibility on spending limits while managing risk based on customer behaviors [1] Group 2 - Swisscard is recognized as the leading premium credit card provider in Switzerland [1] - The company has been utilizing FICO® Platform for onboarding and credit card limit management for several years [1]

The credit scoring company reported that the average national FICO score has slipped slightly, raising concerns about household resilience amid shifting economic conditions.The overall score has declined by around two points. While modest, the drop reflects broader shifts in consumer creditworthiness. In 2021, nearly 38.1% of the population held scores in the 600–749 range. By 2025, that proportion had fallen to 33.8%, indicating a narrowing of the middle ground between strong and weak borrowers.The most p ...

Core Insights - Borrowers are experiencing unprecedented levels of delinquency on student loan payments, leading to significant declines in credit scores [1][2][3] Delinquency Rates - Over 10% of consumers with student loans have not made a payment in over 90 days, with 3.1% of these borrowers (6.1 million consumers) reporting delinquencies from February to April [1][2] - The delinquency rate increased by 25% from 7.9% in April of the previous year to 9.8% in April of this year [2] Impact on Credit Scores - The average credit score for the 6.1 million consumers with delinquencies dropped by 69 points, falling below 600 [3] - Approximately 25% of these borrowers experienced a drop of more than 100 points in their credit scores [3] Payment Behavior - An additional 1.9 million consumers have not made any payments since October but have seen their credit scores rise by an average of 2 points [4] - In contrast, 12.9 million borrowers who made at least one payment since October saw a decline of 1 point in their credit scores [4] Demographic Insights - Generation Z has experienced the largest year-over-year drop in credit scores, with 34% of this group holding student loans, which is double the rate of the overall population [5] Regulatory Context - The impact of unpaid student loan payments on credit reports is being felt for the first time since the CARES Act allowed for a pause in payments until October 2023 [6] - Federal student loan delinquencies began appearing on credit reports in February due to a 90-day delay in reporting after payments are past due [7]

By Nupur Anand NEW YORK (Reuters) -Some U.S. consumers are showing increased signs of stress as inflation and higher interest rates are affecting affordability and leading to financial strain on borrowers, credit scoring company Fair Isaac Corporation, widely known as FICO, said on Tuesday. The overall national FICO score has dipped slightly by about 2 points. About 38.1% of the population scored between 600 and 749 points in 2021, while only 33.8% of the population ranked in these middle ranges in 2025. ...

Core Insights - National FICO scores have dropped two points to 715, reflecting financial struggles among Americans, driven by increased credit card utilization and missed payments [1][2] - Average credit card utilization has risen to 35.5% in 2025 from 29.6% in 2021, indicating a heavier reliance on credit cards [2] - The decline in FICO scores raises concerns for lenders, as these scores are critical for loan approvals, interest rates, and credit limits [2] Group 1: Demographics and Financial Behavior - Gen Z (ages 18 to 29) experienced the largest average FICO Score decrease, down three points year-over-year, with significant financial volatility attributed to student loan debt [4] - 34% of younger consumers hold student loans, compared to 17% of the total population, highlighting the impact of student debt on credit scores [4] - The percentage of Americans in the middle FICO score range (600–749) has decreased from 38.1% in 2021 to 33.8% in 2023 [5] Group 2: Economic Recovery and Consumer Adaptation - The report indicates a K-shaped recovery, where some consumers are moving into higher score brackets while others are struggling [6] - More than half (55%) of Americans checked their credit score at least once in the past year, an increase from 49% in 2024, showing a trend towards greater credit awareness [7] - Consumers are prioritizing auto loans over mortgages, with auto loans being 19% more likely to be paid than mortgages, reflecting a shift in payment hierarchy [8]

Core Insights - The average active balance on UK credit cards has increased to £1,895, which is 5.1% higher year-on-year [1] - The percentage of the balance being paid off by customers has decreased by 7.7% year-on-year [1] - These trends indicate ongoing affordability challenges faced by UK consumers, highlighting a growing latent issue [1]