Fair Isaac

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Overview: Fair Isaac is a leader in credit scoring and risk management analytics, developer of the proprietary, trademarked FICO scores that are a financial services industry standard. Its clients include leading financial institutions and retailers worldwide.

Fair Isaac is named after its founders, Bill Isaac and Earl Isaac. Established in 1956, Fair Isaac is headquartered in Minneapolis, with other U.S. offices in San Diego and San Rafael, CA. The company has 30 offices worldwide.

The principal products and services offered by Fair Isaac are:

  • FICO credit scores
  • Credit risk management tools
  • Fraud prevention tools
  • Customer loyalty and profitability enhancement strategies

Fair Isaac’s major clients include:

  • Banks
  • Mortgage lenders
  • Credit card companies
  • Insurance companies
  • Retailers
  • Health care providers

Job Openings: See this list of current job openings.

Size: Fair Isaac reports these figures as of September 30, 2008 (the end of fiscal 2008):

  • Employees = 2,350
  • Cumulative FICO scores sold = 100 billion
  • Client companies = 5,000
  • Client companies operate in 80 countries
  • Annual revenues (fiscal 2008) = $744.8 million
  • Annual net income (fiscal 2008) = $84.0 million

Fair Isaac reports impressive client penetration within its key markets:

  • 66 of the 100 largest banks
  • All the 100 largest credit card issuers
  • 65% of all credit cards issued worldwide
  • 90 of the 100 largest financial institutions

Positives: Fair Isaac and its products, most notably its FICO scores, are highly respected and widely used. The company remains profitable.

Negatives: In an attempt to cut annual costs by $40 million and improve its stock price performance, Fair Isaac has eliminated 420 positions in 2008, and plans to cut an additional 250 jobs in 2009. Targeted year-end 2009 headcount of 2,100 will be 25% below the figure at the end of 2007. These reductions are bound to reduce career opportunities and to have negative impacts on employee morale.

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