KEY FACT
Predictive analytics technology originated during 1940s wartime
TECH & AI
F R O M W A R T I M T O B A N K I N G
KEY FACT
77 %
Of financial institutions have adopted analytics and AI
Source: OpenText
Predictive analytics technology originated during 1940s wartime
The technology’ s origins are surprisingly humble. During the 1940s, mathematicians working on wartime logistics developed early forecasting models. But it wasn’ t until the 1990s – when processing power expanded and data storage costs plummeted – that predictive analytics found its commercial feet.
Financial services companies were early adopters, initially using basic models for credit assessments and fraud detection.
The real breakthrough came when Fair Isaac Corporation( now FICO) created credit scoring algorithms in the early 2000s. Suddenly, banks could predict loan defaults with unprecedented accuracy, transforming lending from gut instinct to data-driven science.
This foundation enabled a much broader transformation. Modern banks now deploy predictive models across their entire operations.
Credit scoring has evolved far beyond traditional metrics; algorithms now factor in everything from spending patterns to social media behaviour. Some lenders even analyse how customers fill out
92 July 2025