FICO and Equifax Extend Partnership
Nov 6th 2013 12:45PM
Updated Nov 6th 2013 12:46PM
Renewing a partnership that dates back to 2008, FICO has inked a "multi-year agreement" with Equifax to continue providing its partner with FICO scores for resale to U.S. banks, FICO announced today.
In addition to Equifax marketing its Scores service, FICO will also sell the service directly to mortgage lenders and other third parties, according to FICO's statement. In exchange, Equifax will make its consumer data available to FICO for use in "developing and marketing new analytics."
Though financial terms of the deal were not disclosed, Equifax's U.S. Consumer Information Solutions (CIS) division, which includes mortgage data services, represented nearly half its most recently announced quarterly earnings of $586.9 million. Of the quarter's total revenues, CIS generated $259.7 million, according to Equifax's most recent SEC filing.
In FICO's recently announced fiscal Q4, its SCORES division, which includes its credit solutions, generated $46.1 million in revenues, down 1% from the year-ago quarter. For the business-to-business SCORES unit, FICO saw an 8% decline in revenues, much of which was offset by strong results in its business-to-consumer segment.
The renewed agreement between Equifax and FICO will not impact consumer's ability to access FICO Scores directly, the company said.
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