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FICO Data: Warning Signs for New Card Accounts in Ireland

Blog: Enterprise Decision Management Blog

Our analysis of UK and Ireland card trends in the FICO® Benchmark Reporting Service has revealed some worrying trends for cards issued in Ireland. Over the past few months, the percentage of new Irish card accounts that are delinquent has climbed to around 10%, more than twice the average for UK cards.

We see a similar trend with delinquent balances on new Irish cards, where 13.5% of balances were delinquent in December, compared with 3.5% for UK cards. New accounts are those on book less than a year.

This indicates a riskier population are being accepted in Ireland, and it is worth Irish issuers identifying the reasons for this, as changes to originations policies may be needed. The trend is reinforced by the recent sharp rise in average credit lines for new accounts in the Irish market, allowing potentially higher delinquent balances to flow through.

Average delinquency balances on all cards are more in line with the UK, despite credit limits being approximately 18% lower than the UK, and the more mature accounts are influencing this. For new accounts, though, average 2-cycle delinquent balances are more than 36% higher than in the UK.

Other Trends in Irish Cards vs. UK Cards

Given these trends, it is not surprising to see a higher overall percentage of overlimit accounts in Ireland. Despite the higher average lines for new accounts in Ireland vs. the UK, the percentage of overlimit accounts also exceeds the UK average. The average amount overlimit in Ireland for accounts <5 years on book is significantly higher than in the UK. Collections teams could review to determine if specific action is required on this subpopulation.

FICO’s Benchmarking Services

The card performance figures are part of the data shared with subscribers of the FICO® Benchmark Reporting Service, which compares overall market performance in the UK cards market with individual card issuers’ performance. The data sample comes from client reports generated by the FICO® TRIAD® Customer Manager solution in use by most UK and Irish card issuers. For more information on the new service, please contact me at

The post FICO Data: Warning Signs for New Card Accounts in Ireland appeared first on FICO.

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