Expanding the Scope of Credit Information

Date Published: 
Jan 2004
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.

South Asia