Will Lansing (CEO of FICO): Power of Data Standards

Market Expansion

Will Lansing, CEO of FICO, discusses the strategic expansion of FICO's market presence by partnering with lenders and bureaus. He explains that by offering the FICO score for free to consumers, FICO embedded itself into the financial ecosystem, making the score essential for both lenders and consumers 1. This approach not only increased brand recognition but also reduced customer acquisition costs, as partners effectively marketed the FICO score 2.

We made it free. We said, let's give it to consumers for free. And not surprisingly, many lenders were reluctant to do that because they thought, oh, we'll never get FICO out of here.

--- Will Lansing

Auren Hoffman notes that FICO's strategy of providing utility to partners has been instrumental in building the brand without a significant advertising budget 3.

   

Standardization

FICO's journey to becoming a credit scoring standard involved strategic steps to embed itself within the financial ecosystem. Will Lansing highlights the importance of understanding the core question a standard aims to answer, which in FICO's case, was providing a reliable credit score 4. By initially targeting lenders and gradually expanding to include investors and consumers, FICO created a network effect that solidified its position as a standard 5.

Know what question you're trying to answer. I can't tell you how many times I've spoken to people who've come into me with FICO and said, we want to be the FICO score of safe driving.

--- Will Lansing

This approach not only increased the utility of the FICO score but also ensured its widespread adoption across various financial sectors.

   

Consumer Engagement

FICO's consumer engagement strategy focused on demystifying the credit score and making it accessible to the public. Will Lansing explains that by educating consumers and providing the score for free, FICO empowered individuals to improve their financial standing 1. This transparency not only benefited consumers but also reinforced FICO's central role in the lending ecosystem 2.

We don't want it to be a black box. We don't want it to be a mystery.

--- Will Lansing

Auren Hoffman adds that this strategy of leveraging partners to educate and engage consumers has been crucial in maintaining FICO's relevance and demand.