Sammy Zhang

Sammy Zhang asked about the traction of a potential move from tri-merge to bi-merge credit reporting, considering the MBA's single score proposition and regulators' focus on bureaus. He also inquired about FICO's software investment cycle, the progress of the platform build-out, and when investments are expected to normalize.

Answer

CEO Will Lansing acknowledged the discussion around bi-merge but highlighted the bureaus' argument that tri-merge prevents underserved consumers due to file differences. He emphasized the structural challenge of gaming and adverse selection with bi-merge or lender choice. Will Lansing stated that FICO continues to invest in its software business, expecting margin expansion from scaling profitably rather than reduced R&D spending, which may decrease someday.