Expanding the Scope of Credit Information

Paper
Date Published: 
Jan 2004
Author: 
Martin, D.

What is the need for developing credit information scope and how is it done?

This presentation discusses the need to increase the scope of credit information.It informs about:

  • Credit bureau (CB) activities in the Asia region;
  • Flow of information in CBs;
  • Types of CBs;
  • CB development considerations such as, data, resources, credit policies, legislations, consumer privacy, security, etc;
  • Standard credit information, with examples.

It presents the following reasons to increase the scope of credit information:

  • Socio-economic factors;
  • Increased knowledge of the credit process with consumers;
  • Credit- hungry societies;
  • Competition;
  • Revenue opportunities.

It identifies the following five keys to develop scope. These include:

  • Depth of information;
  • Manipulation of information;
  • Value adding;
  • Technology;
  • Presentation of the information.

The presentation:

  • Identifies legislation, governments, public opinion, attitudes, cost, infrastructure and skills as barriers to developing scope;
  • Lists the features of both public and private credit bureau information;
  • Explains the steps to expanding scope that include: tracing, monitoring, scoring, asset checks, value decisioning, marketing, loan origination and administration.

It concludes by presenting a timeline for the development of scope.

Type: 
Paper
Region: 
South Asia