Editing FICO

{{Short description|American credit score services company}}
{{Other uses}}
{{Infobox company
| name = Fair Isaac Corporation
| trade_name = FICO
| logo = File:Fair Isaac Corporation logo.svg
| logo_size = 190px
| image = Ficoheadquarters.jpg
| image_caption = FICO's former headquarters in San Jose
| type = [[Public company]]
| traded_as = {{ubl|{{NYSE|FICO}}|[[S&P 500]] component}}
| industry = Computer
| founded = {{Start date and age|1956}} (as Fair, Isaac, and Company)
| hq_location = [[Bozeman, Montana]], U.S.
| area_served = Worldwide
| key_people = {{unbulleted list|William Lansing|([[Chief executive officer|CEO]])<ref name=twincities>{{Cite web|url=http://www.twincities.com/ci_20481216/fico-shuffles-executive-ranks-under-new-ceo|title=FICO shuffles executive ranks under new CEO|date=25 April 2012|access-date=21 October 2014|publisher=Twin Cities Business}}</ref>|Bill Fair|(co-founder)|Earl Isaac|(co-founder)}}
| revenue = {{increase}} {{US$|1.295 billion|link=yes}} (2020)
| operating_income = {{nowrap|{{increase}} US$295.97 million (2020)}}
| profit = {{increase}} US$236.41 million (2020)
| assets = {{increase}} US$1.606 billion (2020)
| equity = {{increase}} US$331.08 million (2020)
| num_employees = {{nowrap|3,305 (December 31, 2022)}}
| caption = 
| products = [[Credit score in the United States#FICO score|FICO Score]]
| services = Computer software
| website = {{URL|https://www.fico.com/|fico.com}}
}}

'''FICO''' (legal name: '''Fair Isaac Corporation'''), originally '''Fair, Isaac and Company''', is an American [[data analytics]] company based in [[Bozeman, Montana]], focused on [[credit scoring]] services. It was founded by [[William Robert Fair|Bill Fair]] and [[Earl Isaac]] in 1956.<ref>{{Cite web|url=https://finance.yahoo.com/news/fico-became-credit-score-100000037.html |title=How FICO became 'the' credit score |publisher=finance.yahoo.com |date=2013-12-12 |access-date=2018-08-25}}</ref> Its [[Credit score in the United States#FICO score|FICO score]], a measure of consumer credit risk,<ref name=nytimes>{{cite news | url = http://bucks.blogs.nytimes.com/2012/05/10/is-that-credit-score-a-fico-or-a-fico-8/ | title = Is That Credit Score a FICO, or a FICO 8? | author = Ann Carrns | date=10 May 2012 | access-date=21 October 2014 | newspaper = New York Times}}</ref> has become a fixture of consumer lending in the United States.

In 2013, [[creditor|lenders]] purchased more than 10 billion FICO scores and about 30 million American consumers accessed their scores themselves.<ref name=nationalmortgagenews>{{Cite web | url = http://www.nationalmortgagenews.com/news/technology/new-fico-scoring-model-coming-this-summer-1041282-1.html | title = New FICO Scoring Model Coming This Summer | author = Evan Nemeroff | date=7 March 2014 | access-date = 21 October 2014 | publisher = National Mortgage News}}</ref> The company reported a revenue of $1.29 billion for the fiscal year of 2020.<ref>{{Cite web|date=2020-11-10|title=Fair Isaac Corp (FICO) Q4 2020 Earnings Call Transcript|url=https://www.fool.com/earnings/call-transcripts/2020/11/10/fair-isaac-corp-fico-q4-2020-earnings-call-transcr/|access-date=2021-05-04|website=The Motley Fool|language=en}}</ref>

== History ==
FICO was founded in 1956 as Fair, Isaac and Company by engineer William R. "Bill" Fair and mathematician [[Earl Isaac|Earl Judson Isaac]].<ref name="businessweek">{{Cite news|url=http://www.businessweek.com/stories/2008-02-06/credit-scores-not-so-magic-numbers|archive-url=https://web.archive.org/web/20120814173235/http://www.businessweek.com/stories/2008-02-06/credit-scores-not-so-magic-numbers|url-status=dead|archive-date=August 14, 2012|title=Credit Scores: Not-So-Magic Numbers|date=2008-02-06|author=Dean Foust|author2=Aaron Pressman|newspaper=Bloomberg.com|access-date=2014-11-02}}</ref> The two met while working at the [[SRI International|Stanford Research Institute]] in [[Menlo Park, California]].<ref name="startribune">{{Cite web|url=http://www.startribune.com/business/185665572.html|title=Fair Isaac moving its HQ back to California|date=2013-01-04|author=Jennifer Bjorhus|website=[[Star Tribune]] |access-date=2014-11-02}}</ref> Selling its first credit scoring system two years after the company's creation,<ref name=hist>[https://www.fico.com/en/about-us#our_history About Us&nbsp;{{!}} FICO]&nbsp;— FICO official Web site</ref> FICO pitched its system to fifty American [[Creditor|lenders]].<ref name="marketplace">{{Cite web|url=http://www.marketplace.org/topics/your-money/how-i-learned-stop-worrying/brief-history-credit-score|title=A brief history of the credit score|date=2014-04-22|author=Adriene Hill|access-date=2014-11-02}}</ref>

FICO went [[public company|public]] in July 1987<ref>{{Cite web |date=December 30, 1996 |title=Notice of Annual Meeting of Stockholders of Fair, Isaac and Company, Incorporated |url=https://investors.fico.com/node/13956/html |access-date=June 13, 2023 |website=FICO.com}}</ref> and is traded on the [[New York Stock Exchange]].<ref name=businessweek /> The company debuted its first general-purpose FICO score in 1989.<ref name=nytimes /> FICO scores are based on credit reports and "base" FICO scores range from 300 to 850,<ref name=nytimes /> while industry-specific scores range from 250 to 900.<ref>{{Cite web |url=http://www.myfico.com/credit-education/credit-report-credit-score-articles/ |title=What is a FICO score? |website=MyFICO.com official website |publisher=Fair Isaac Corporation |access-date=2016-11-11}}</ref>

Lenders use the scores to gauge a potential borrower's creditworthiness.<ref name="nytimes2">{{Cite web | url=http://bucks.blogs.nytimes.com/2012/05/03/report-finds-improvement-in-credit-scores/|title=Report Finds Improvement in Credit Scores|date=2012-05-03|author=Ann Carrns|access-date=2014-11-02}}</ref>

[[Fannie Mae]] and [[Freddie Mac]] first began using FICO scores to help determine which American consumers qualified for mortgages bought and sold by the companies in 1995.<ref>{{Cite web|url=http://www.benbest.com/business/credit.html|title=North American Credit Scoring & Reporting |publisher=benbest.com |date=2009-12-04 |access-date=2015-05-13}}</ref>

===Name changes===
Originally called Fair, Isaac and Company (hence the abbreviation FICO), this name was changed to Fair Isaac Corporation in 2003.<ref name=hist/>

===Headquarters moves===
Originally based in [[San Rafael, California]], FICO moved its headquarters to [[Minneapolis, Minnesota]], in 2004, a few years after Minnesota resident Thomas Grudnowski took over as CEO.<ref>{{Cite web | url = http://www.sfgate.com/business/article/Fair-Isaac-moving-its-hub-Most-company-2760210.php | title = Fair Isaac moving its hub / Most company executives already set up in Minnesota | author = Dan Fost | date=11 May 2004 | access-date = 21 October 2014 | publisher = SFGate}}</ref> In 2013, it moved its headquarters to San Jose, California, a year after CEO William Lansing joined.<ref name=mercurynews>{{cite news | url = http://www.mercurynews.com/ci_22307524/fico-moves-headquarters-san-jose | title = FICO moves headquarters to San Jose | author = Pete Carey | date = 4 January 2013 | access-date = 21 October 2014 | newspaper = Mercury News}}</ref> In 2016 it opened an office in Bozeman, Montana which later became its headquarters.<ref>{{Cite web |title=Silicon Valley Analytics Pioneer FICO Announces Expansion in Bozeman, Montana |url=https://www.fico.com/en/newsroom/silicon-valley-analytics-pioneer-fico-announces-expansion-bozeman-montana |access-date=2022-09-21 |website=FICO |language=en}}</ref>

==Acquisitions==
*DynaMark 1992<ref>{{Cite web|url=http://www.twincities.com/ci_20918752/fico-consolidating-operations-roseville|title=FICO consolidating operations in Roseville|publisher=twincities.com|date=2012-06-22|access-date=2014-10-30}}</ref>
*Risk Management Technologies 1997<ref>{{Cite web|url=http://www.contenthouse.com/rmt/newspg/radrscp/fi-mergr.htm|title=RMT Merges with Fair, Isaac|date=July 1997|access-date=2014-10-30|archive-url=https://web.archive.org/web/20160304040955/http://www.contenthouse.com/rmt/newspg/radrscp/fi-mergr.htm|archive-date=2016-03-04|url-status=dead}}</ref>
*Prevision 1997<ref>{{Cite web|url=http://www.buy-sell-econtent.com/2011/Speakers/BruceDAmbrosio.aspx |title=Bruce D D'Ambrosio |publisher=buy-sell-econtent.com |access-date=2015-05-14 |url-status=dead |archive-url=https://web.archive.org/web/20160304185359/http://www.buy-sell-econtent.com/2011/Speakers/BruceDAmbrosio.aspx |archive-date=2016-03-04 }}</ref>
*Nykamp Consulting Group 2001<ref>{{Cite web|url=http://www.bizjournals.com/sanjose/stories/2001/12/10/daily24.html|title=Fair, Isaac to acquire Nykamp Consulting|date=2001-12-12|access-date=2014-10-30}}</ref>
*HNC Software 2002<ref>{{Cite news|url=http://www.sfgate.com/business/article/Fair-Isaac-merging-with-HNC-Software-2844440.php|title=Fair Isaac merging with HNC Software|newspaper=Sfgate |date=2002-04-30 |last1=Fost |first1=Dan }}</ref>
*NAREX 2003<ref>{{Cite web|url=http://www.bizjournals.com/denver/stories/2003/07/28/daily7.html|title=Narex sold for $10M|date=2003-07-28|access-date=2014-10-30}}</ref>
*Diversified Healthcare Services 2003<ref>{{Cite web|url=https://www.latimes.com/archives/la-xpm-2003-sep-19-fi-rup19.6-story.html|title=Fair Isaac Acquires Diversified HealthCare|website=[[Los Angeles Times]] |date=2003-09-19|access-date=2014-10-30}}</ref>
*Seurat (2003)<ref>{{Cite web|url=http://www.bizjournals.com/charlotte/stories/2003/10/06/daily7.html|title=California firm buys Seurat|date=2003-10-06|access-date=2014-10-30}}</ref>
*London Bridge Software 2004<ref>{{Cite web|url=http://www.stockmarketwire.com/article/345520/Fair-Issac-offers-166m-for-London-Bridge-Software.html|title=Fair Issac offers $166m for London Bridge Software|date=2004-04-26}}</ref>
*Braun Consulting 2004<ref>{{Cite web|url=http://www.information-management.com/news/1010825-1.html|title=Fair Isaac and Braun Consulting Announce Acquisition Agreement|date=2004-09-24|access-date=2014-10-30}}</ref>
*RulesPower 2005<ref>{{Cite web|url=http://www.information-management.com/news/1038322-1.html|title=Fair Isaac Acquires RulesPower Technology to Advance Business Rules Capabilities|date=2005-09-28|access-date=2014-10-30}}</ref>
*Dash Optimization 2008<ref>{{Cite web|url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aB0dtBZx6z.k|title=Fair Isaac Acquires Dash Optimization, Bringing Increased Power|website=[[Bloomberg News]] |access-date=2014-10-30}}</ref>
*Entiera 2012<ref>{{Cite web|url=http://www.denverpost.com/ci_20582831/denver-based-entiera-acquired-by-fico|title=Denver-based Entiera acquired by FICO|author=Howard Pankratz|date=2012-05-09|access-date=2014-10-30}}</ref>
*Adeptra 2012<ref>{{Cite web | url=https://finance.yahoo.com/news/fico-completes-115m-acquisition-adeptra-175112495.html | title=FICO completes $115M acquisition of Adeptra | publisher=Yahoo! | work=finance.yahoo.com | date=September 10, 2012 | access-date=4 November 2014}}</ref>
*CR Software 2012<ref>{{Cite web|url=http://www.bizjournals.com/twincities/news/2012/11/26/fico-buys-cr-software.html|title=FICO buys collections and receivables software company|date=2012-11-26|author=Ed Stych|access-date=2014-10-30}}</ref>
*Infoglide 2013<ref>{{Cite web|url=http://www.bizjournals.com/austin/blog/abje_news/2013/04/infoglide-software-acquired-by-credit.html|title=Infoglide Software acquired by credit score giant FICO|date=2013-04-04|access-date=2014-10-30}}</ref>
*InfoCentricity 2014<ref>{{Cite web|url=http://www.nasdaq.com/article/fico-set-to-acquire-infocentricity-analyst-blog-cm335560|title=FICO Set to Acquire InfoCentricity|date=2014-03-14|access-date=2014-10-30}}</ref>
*Karmasphere 2014<ref>{{Cite web|url=http://www.marketwatch.com/story/fico-adds-big-data-analytics-for-hadoop-to-fico-analytic-cloud-2014-04-16|title=FICO Adds Big Data Analytics for Hadoop to FICO Analytic Cloud|date=2014-05-16|access-date=2014-10-30}}</ref>
*TONBELLER AG 2015<ref>{{Cite web|url=http://www.fico.com/en/FICO-acquires-TONBELLER|title=FICO Acquires TONBELLER|access-date=2015-05-21|archive-url=https://web.archive.org/web/20150607223618/http://www.fico.com/en/FICO-acquires-TONBELLER|archive-date=2015-06-07|url-status=dead}}</ref>
*QuadMetrics 2016<ref>{{Cite web|url=http://www.fico.com/en/newsroom/fico-will-offer-enterprise-security-score-for-organizations-06-14-2016|title=FICO Will Offer Enterprise Security Score for Organizations|access-date=2016-11-02}}</ref>
*GoOn 2018<ref>{{Cite web|url=https://www.fico.com/en/newsroom/fico-acquires-goon-to-advance-growth-in-brazil|title=FICO Acquires GoOn to Advance Growth in Brazil|access-date=2016-11-02}}</ref>
*EZMCOM 2019<ref>{{Cite web|url=https://www.fico.com/en/ezmcom-faq|title=FICO Acquires EZMCOM|access-date=2019-10-02}}</ref>

== Antitrust issues ==
In March 2020, the US [[United States Department of Justice|Department of Justice]] (DOJ) opened an antitrust investigation into FICO, which was reported to be closed in December 2020.<ref>{{Cite news |last=Nylen |first=Leah |date=2020-03-13 |title=DOJ opens antitrust probe into credit score giant Fair Isaac |url=https://www.politico.com/news/2020/03/13/justice-fair-isaac-antitrust-129204 |url-status=live |archive-url=https://web.archive.org/web/20230314210045/https://www.politico.com/news/2020/03/13/justice-fair-isaac-antitrust-129204 |archive-date=2023-03-14 |access-date=2024-06-26 |work=[[Politico]]}}</ref><ref>{{Cite web |date=2020-12-08 |title=FICO Announces DOJ Antitrust Investigation Closed |url=https://www.fico.com/en/newsroom/fico-announces-doj-antitrust-investigation-closed |url-status=live |archive-url=https://web.archive.org/web/20210422143034/https://www.fico.com/en/newsroom/fico-announces-doj-antitrust-investigation-closed |archive-date=2021-04-22 |access-date=2024-06-26 |website=FICO}}</ref> In March 2024, US Senator [[Josh Hawley]] sent a letter to the DOJ's [[United States Department of Justice Antitrust Division|Antitrust Division]] urging them to open an investigation into FICO for [[anti-competitive practices]], stating that the company "appears to be using its monopolistic power over the credit scoring market to increase costs for mortgage lenders."<ref>{{Cite web |last=KTTN News |date=2024-03-13 |title=FICO faces scrutiny for anti-competitive behavior in credit scoring |url=https://www.kttn.com/fico-faces-scrutiny-for-anti-competitive-behavior-in-credit-scoring/ |archive-url=https://web.archive.org/web/20240313094522/https://www.kttn.com/fico-faces-scrutiny-for-anti-competitive-behavior-in-credit-scoring/ |archive-date=2024-03-13 |access-date=2024-06-26 |website=[[KTTN-FM]] |language=en-US}}</ref><ref>{{Cite web |last=Albright |first=Ty |date=2024-03-12 |title=Hawley calls on DOJ to investigate FICO for anti-competitive practices |url=https://newstalkkzrg.com/2024/03/12/hawley-calls-on-doj-to-investigate-fico-for-anti-competitive-practices/ |url-status=live |archive-url=https://web.archive.org/web/20240327104102/https://newstalkkzrg.com/2024/03/12/hawley-calls-on-doj-to-investigate-fico-for-anti-competitive-practices/ |archive-date=2024-03-27 |access-date=2024-06-26 |website=[[KZRG]] |language=en-US}}</ref><ref>{{Cite web |last=Nunes |first=Flávia Furlan |date=2024-03-21 |title=Senator urges DOJ to investigate FICO over increasing costs to mortgage lenders |url=https://www.housingwire.com/articles/senator-urges-doj-to-investigate-fico-over-increasing-costs-to-mortgage-lenders/ |archive-url=https://web.archive.org/web/20240520234927/https://www.housingwire.com/articles/senator-urges-doj-to-investigate-fico-over-increasing-costs-to-mortgage-lenders/ |archive-date=2024-05-20 |access-date=2024-06-26 |website=HousingWire |language=en-US}}</ref>

Between 2020 and 2023, at least 10 antitrust [[class action]] lawsuits were filed against FICO involving "business to business" purchases of FICO scores, with the plaintiffs alleging that FICO maintains monopoly power through anticompetitive agreements and charges artificially inflated prices for FICO scores.<ref name="Scarcella-2023">{{Cite news |last=Scarcella |first=Mike |date=2023-09-29 |title=FICO loses bid to dismiss antitrust claims over credit-scoring market |url=https://www.reuters.com/legal/transactional/fico-loses-bid-dismiss-antitrust-claims-over-credit-scoring-market-2023-09-29/ |access-date=2024-06-26 |work=[[Reuters]]}}</ref><ref name="Competition Policy International-2023">{{Cite web |date=2023-10-01 |title=FICO Loses Bid to Dismiss Antitrust Claims Over Credit-Scoring Market |url=https://www.pymnts.com/cpi_posts/fico-loses-bid-to-dismiss-antitrust-claims-over-credit-scoring-market/ |url-status=live |archive-url=https://web.archive.org/web/20240626224134/https://www.pymnts.com/cpi-posts/google-opposes-epic-games-demands-citing-high-costs-and-security-risks/?postType=partial |archive-date=2024-06-26 |access-date=2024-06-26 |website=Competition Policy International |language=en}}</ref> In September 2023 US District Judge [[Edmond E. Chang|Edmond Chang]] ruled that the plaintiffs, which include credit unions, banks, mortgage lenders, real estate brokerages, auto dealers, and other companies, had presented enough evidence that FICO had violated antitrust law to allow the lawsuits to proceed.<ref name="Scarcella-2023" /><ref name="Competition Policy International-2023" />

== Operations ==
FICO is headquartered in [[Bozeman, Montana]] and it has additional U.S. locations in [[San Jose, California]], [[Roseville, Minnesota]], [[San Diego, California]], [[San Rafael, California]], [[Fairfax, Virginia]], and [[Austin, Texas]].<ref name="locations">{{Cite web|url=http://www.fico.com/en/about-us/locations/|title=Office Locations|access-date=2014-10-30|archive-url=https://web.archive.org/web/20141104014113/http://www.fico.com/en/about-us/locations/|archive-date=2014-11-04|url-status=dead}}</ref>

The company has international locations in [[Australia]], [[Brazil]], [[Canada]], [[China]], [[Germany]], [[India]], [[Italy]], [[Japan]], [[South Korea]], [[Lithuania]], [[Malaysia]], the [[Philippines]], [[Poland]], [[Russia]], [[Singapore]], [[South Africa]], [[Spain]], [[Taiwan]], [[Thailand]], [[Turkey]], and the [[United Kingdom]].<ref name=locations/>

== FICO score ==
{{Main|Credit score in the United States#FICO score}}
{{See also|Criticism of credit scoring systems in the United States}}
A measure of credit risk, [[Credit score in the United States#FICO score|FICO score]]s are available through all of the major [[credit bureau|consumer reporting agencies]] in the [[United States]]: [[Equifax]], [[Experian]], and [[TransUnion]].<ref name=ccrs>[http://www.fico.com/en/Partners/Pages/Credit-Reporting-Agencies.aspx Credit Reporting Agencies]&nbsp;— FICO official Web site</ref> FICO scores are also offered in other markets, including [[Mexico]] and [[Canada]],<ref>{{Cite web |url=http://www.fico.com/en/products/fico-score-international-markets |title=FICO Score for International Markets |year=2017 |website=fico.com |publisher=FICO}}</ref> as well as through the fourth U.S. credit reporting bureau, [[PRBC (company)|PRBC]].<ref>[http://www.fico.com/en/Company/News/Pages/11-14-2007.aspx Fair Isaac and PRBC Team Up to Enhance Credit Risk Tools Used by Mortgage Industry]&nbsp;— FICO official Web site</ref>

== References ==
{{Reflist|30em}}

== External links ==
* {{Official website}}
{{Finance links
| name = Fair Isaac Corporation
| symbol = FICO
| reuters = FICO.N
| bloomberg = FICO:US
| sec_cik = 814547
| yahoo = FICO
| google = FICO:NYSE
}}
*[https://helpmebuildcredit.com/everything-need-know-fico-score/ How Does FICO Calculate a Score?]

{{Authority control}}

{{DEFAULTSORT:Fico}}
[[Category:Business intelligence companies]]
[[Category:Business software companies]]
[[Category:Companies listed on the New York Stock Exchange]]
[[Category:Data mining and machine learning software]]
[[Category:Data and information visualization software]]
[[Category:Financial services companies based in California]]
[[Category:Companies based in San Jose, California]]
[[Category:Financial technology companies]]
[[Category:Multinational companies headquartered in the United States]]
[[Category:Software companies based in the San Francisco Bay Area]]
[[Category:Software companies based in Montana]]
[[Category:American companies established in 1956]]
[[Category:Business services companies established in 1956]]
[[Category:Financial services companies established in 1956]]
[[Category:Computer companies established in 1956]]
[[Category:Credit scoring]]
[[Category:1956 establishments in California]]
[[Category:1980s initial public offerings]]
[[Category:Software companies of the United States]]
[[Category:Bozeman, Montana]]