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© 2015 Fair Isaac Corporation. All rights reserved. 1
Improved Solution Helps
Foster Growth for Kabbage
and Customers Alik...
FICO is a trademark or registered trademark of Fair Isaac Corporation in the United States and in other countries. Other p...
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Data-Driven Lender Replaces Unmanageable Decisioning Technology with FICO ® Origination Manager

Client:Kabbage has a unique lending approach. It pulls data in real-time from Amazon, eBay, Facebook, Twitter, Intuit QuickBooks and other unconventional data sources to constantly update models for small business loans.

Challenge: Neither of the tools Kabbage had used to make lending decisions could provide the kind of scalability and daptable modeling that it needed to support its aggressive growth goals.

Solution: FICO® Origination Manager

Results:Kabbage increased revenue by 300% in the last 12 months by leveraging technologies from FICO and other partners to automate and manage its processes. It also launched Karrot, in expansion into consumer lending, in just a few weeks using the FICO solution.

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Data-Driven Lender Replaces Unmanageable Decisioning Technology with FICO ® Origination Manager

  1. 1. © 2015 Fair Isaac Corporation. All rights reserved. 1 Improved Solution Helps Foster Growth for Kabbage and Customers Alike • Kabbage released a new consumer product in less than 60 days from decision to go-live, a timeline accelerated by its ability to quickly build and adjust its models • Automating and managing processes from origination through account management contributed to a 300% boost in Kabbage revenue • Small business customers increase revenue by an average of 72% after working with Kabbage, which now continually refines its models to enhance their value Data-Driven Lender Replaces Unmanageable Decisioning Technology with FICO® Origination Manager Client: Kabbage has a unique lending approach. It pulls data in real-time from Amazon, eBay, Facebook, Twitter, Intuit QuickBooks and other unconventional data sources to constantly update models for small business loans. Challenge: Neither of the tools Kabbage had used to make lending decisions could provide the kind of scalability and adaptable modeling that it needed to support its aggressive growth goals. Solution: FICO® Origination Manager Results: Kabbage increased revenue by 300% in the last 12 months by leveraging technologies from FICO and other partners to automate and manage its processes. It also launched Karrot, an expansion into consumer lending, in just a few weeks using the FICO solution. Time for a Change After six years in business, Kabbage reached out to FICO for a better way to support the real-time lending decisions it makes every day using online third- party transaction data. “Technology is a vital part of our DNA,” explains Kathryn Petralia, Cofounder and Chief Operating Officer at Kabbage. “We knew we needed a solid technical foundation and reliable partners to help us scale our ORIGINATION Data-Driven Lender Replaces Unmanageable Decisioning Technology with FICO® Origination Manager “It’s important to work with partners that take away— not add to—your pain, and that’s definitely what we get with FICO. ” Kathryn Petralia, Cofounder and Chief Operating Officer, Kabbage
  2. 2. FICO is a trademark or registered trademark of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2015 Fair Isaac Corporation. All rights reserved. 4109CS_EN 04/15 PDF NORTH AMERICA +1 888 342 6336 info@fico.com FOR MORE INFORMATION www.fico.com www.fico.com/en/blogs LATIN AMERICA & CARIBBEAN +55 11 5189 8267 LAC_info@fico.com EUROPE, MIDDLE EAST & AFRICA +44 (0) 207 940 8718 emeainfo@fico.com ASIA PACIFIC +65 6422 7700 infoasia@fico.com business. But the third-party decisioning technology we originally licensed turned out to be hard to work with, and the custom functionality we built next became unmanageable.” Flexible Technology and a Close Partnership To streamline its decisioning processes, Kabbage wanted a new solution that it could easily modify and use across the credit lifecycle — from initial origination through account management. Kabbage and FICO walked through the lender’s requirements, determining that FICO® Origination Manager could satisfy them all. “The FICO team has been fantastic about working with us to understand and address our needs,” says Petralia. “We have weekly calls to discuss our implementation and how we can use Origination Manager even more effectively.” The faster Kabbage customers receive loans, the sooner they can grow their businesses. “Our customers increase their revenue by an average of 72% after working with us,” says Petralia. “Most of them are small and wouldn’t have access to the quick infusions of capital they need without Kabbage and the technology we use to automate our processes. We’re excited to handle our decisioning with FICO Origination Manager, which makes it possible for us to manage multiple concurrent models in a way that we couldn’t before.” Complete Decision Making and Scalable Support for Business Growth By using Origination Manager, Kabbage makes better determinations about lending and experiences multiple benefits, such as: • Comprehensive modeling. In addition to origination, Kabbage uses Origination Manager to manage risk and find opportunities to provide extra funds to customers. “We have the account management, payment, collections and servicing models, and we can manage all of those in one place,” says Petralia. “Rather than waiting for help from a developer, our in-house analyst can quickly take care of whatever we need.” • Ability to rapidly refine models. The company appreciates the solution’s inherent flexibility. “We can include even more data in our models as we identify meaningful, correlative attributes and variables,” says Petralia. “We’re always adding new data sources, and it’s great that we can immediately incorporate them into our models. If we were managing a platform internally, it would take a tremendous amount of time to adapt and build models, but it’s fast and easy with Origination Manager.” • Scalability to support business expansion. Kabbage developed a consumer product called Karrot, which lends to individuals and start-up companies. “We launched Karrot in less than 60 days from decision to go- live, which is a testament to the power of our platform,” says Petralia. “Thanks to FICO Origination Manager, we could quickly build and implement a new model, and that speed compressed the project timeline. Overall, we’ve increased our revenue by 300% in the last 12 months, and we could not have achieved that growth without help from Origination Manager to automate and manage our processes.” • True partnership. Kabbage knows it has found a valuable partner in FICO. “At Kabbage, it’s our business to make decisions — we make them when we acquire new customers and as we lend to those customers on an ongoing basis,” says Petralia. “We can continue to develop new models and move into new markets with confidence knowing we have a strong partner like FICO to help us accomplish our goals.” To learn more about FICO’s origination solutions, go to: www.fico.com/small-business- originations ORIGINATION Data-Driven Lender Replaces Unmanageable Decisioning Technology with FICO® Origination Manager

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