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The latest FICO data reveals significant trends in the UK credit card market. In February 2023, average card spending rose 3.7% month-on-month to £785, reflecting ongoing cost-of-living pressures. Consumers are managing their finances by paying off less of their outstanding balances, with the percentage of payments to balance dropping 4.1% month-on-month. Positive trends include a 15.6% decrease in accounts missing one payment and a 12.6% drop in those missing two payments. However, those with three missed payments increased 27.4% year-on-year. The average credit limit remained around £5,550, indicating steady lending conditions amidst economic challenges.

Trust Bank, Singapore's digital bank, has achieved impressive growth and recognition. Utilizing the FICO® Platform, the bank acquired 100,000 customers in just 10 days and has over 450,000 customers within five months, capturing about 9% of the Singapore market. The bank’s digital onboarding process facilitates quick customer access, allowing them to receive credit cards within four minutes. Trust Bank recently won the 2023 FICO® Decisions Award for Customer Onboarding and Management, highlighting its commitment to innovative risk management and customer service excellence. Key features include fast onboarding and flexibility in policy adjustments, enabling swift responses to customer feedback and market demands.

FICO has conducted a study highlighting concerning trends among UK credit card users in the Established vintage (1-5 years). As of February 2023, this group showed a significant increase in payment delinquencies. Specifically, they are 83% more likely to miss two payments compared to the overall average, with average balances predicted to go unpaid at 69% higher than all card accounts. Additionally, three missed payments are nearly 94% more common in this demographic.

Factors contributing to this trend include higher minimum payments and increased interest rates for these accounts. The 'balance at risk' for these customers has increased by over 60% since February 2022, raising alarms for risk managers, especially ahead of new Consumer Duty regulations set to start in July.

FICO (NYSE: FICO) is enhancing access to FICO® Scores for consumers during Financial Literacy Month, enabling free checks of their FICO Score 8 through multiple channels, including myFICO.com/free. This initiative, aimed at promoting credit education, underscores FICO's commitment to financial literacy, with 90% of U.S. lenders using FICO Scores. A recent survey by FICO revealed that 85% of consumers feel more secure when their credit score is healthy. The company emphasizes various resources, such as the FICO® Score Open Access program and the “Score a Better Future” initiative, which connects individuals to free credit coaching. These efforts align with FICO’s mission to empower consumers and help them manage their finances effectively.