1 / 26

International Credit Bureau Experience: Focus on Eastern Europe

International Credit Bureau Experience: Focus on Eastern Europe. BACEE Credit Bureau Roundtable Budapest, April 21 st 2006 Petr Kucera Managing Director – CCB Czech Credit Bureau CRIF Group. International Credit Bureau Experience: Focus on Eastern Europe. Table of contents.

presley
Download Presentation

International Credit Bureau Experience: Focus on Eastern Europe

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. International Credit Bureau Experience: Focus on Eastern Europe BACEE Credit Bureau Roundtable Budapest, April 21st 2006 Petr Kucera Managing Director – CCB Czech Credit Bureau CRIF Group © 2006 CRIF

  2. International Credit Bureau Experience: Focus on Eastern Europe Table of contents • CRIF Introduction • Why a Credit Bureau? • CEE and CIS markets: benefits from CB • Credit Bureaux development: the road map • CRIF: Competence and Flexibility © 2006 CRIF

  3. CRIF international dimension CRIFIntroduction • CRIF is one of the main international groups specializing in the development and management of credit reference agencies and decision support systems for the retail credit markets • CRIF is the leader in Italy, with over 440 client banks and financial institutions and 85% of Italian branches connected daily online with its services • CRIF has been successfully expanding credit bureaux activities in the CEE region (to-date involvement in 4 registries (Czech Republic, Slovakia, Croatia, Russia) • Through alliance with TransUnion, we jointly manage the largest number of bureaux worldwide among international specialised operators. © 2006 CRIF

  4. National Bureau of Credit Histories Moscow Tampa Mexico City London Prague Bratislava © 2006 CRIF Milan Bologna

  5. Bureaux – CRIF worldwide market place CRIF worldwide marketplace Different types of our Bureaux involvement Credit Bureau: in the emerging markets it is strategic to support and speed up the economy growth; Insurance Bureau: essential in mature markets to streamline operations and strengthen fraud detection; B2B Bureau: essential in mature markets as a strong companies’ support for completing public information and for the early detection of payment delay. © 2006 CRIF

  6. CRIF worldwide market place CRIF worldwide marketplace Czech Credit Bureau: • Today: Banking Credit Bureau (June 2002) Non Banking Credit Bureau (launch July 2005) Shared Credit Bureau (launch January 2006)Portfolio Monitoring Services • Tomorrow: Credit Bureau Score Credit Application Processing Credit Anti-Fraud SystemsSME, B2B extension © 2006 CRIF

  7. CRIF worldwide market place CRIF worldwide marketplace Slovak Credit Bureau: • Today (operating since 2004): Banking Credit Bureau • Tomorrow: 2006 - Non Banking Credit Bureau Credit Bureau Score Credit Application Processing Credit Anti-Fraud Systems © 2006 CRIF

  8. CRIF worldwide market place CRIF worldwide marketplace Russian Credit Bureau: • In partnership with TransUnion and NBCH National Bureau of Credit Histories • Sept ’05 – Launch of Credit Bureau & Application Processing for Credit Cards and Personal Loans • Approx. 400 Banks Members © 2006 CRIF

  9. CRIF worldwide market place CRIF worldwide marketplace Croatian Credit Bureau: • Kick off 20 September and go live in May 2006 • In partnership with TransUnion • and HROK - Hrvatski Registar Obveza Po Kreditima © 2006 CRIF

  10. Buro de Credito Our Credit Bureau Partners • Ireland • Mexico • Sweden • Russia NBCH • Germany • Germany • Brazil • Poland • Croatia • Canada • Repùblica Dominicana © 2006 CRIF

  11. Customer Acquisition Portfolio Management Debt Collection Planning & Development Provider of complex decision support solutions CRIFIntroduction • Credit Reporting(Individuals and SMEs) • Business and financial information (Company profiles, Financial data, Judgements, etc.) • Business Intelligence and decision support systems (Scoring and Rating) • Software and Processing services for management StrategyOne CreditFlow • Collection - Information © 2006 CRIF

  12. Positive Data Credit Bureau Benefits International CB models Limitations of a negative Credit Bureau which can be overcome with a positive Credit Bureau model • No distinction of “shade of black” • Missing global view on credit positions of a person • Not sufficient information on risk of overindebtedness • No individual “early warning signs” in worsening macroeconomic situation – leads to general default levels • Substantial reduction of new business generation without positive data. • Possibility to override internal policy or result from credit scoring function with positive record in the Credit Bureau Examples from abroad: • 14 EU member countries operate positive data bureaux • Efforts to switch from negative to posivite in a number of countries (Hungary, Hong-Kong, Latin America, etc.) • Establishments in process only consider postive bureaux (Croatia, Russia, Ukraine, Romania, Serbia, Bulgaria, etc.) © 2006 CRIF

  13. Why a Credit Bureau in CEE and CIS market? Why a CB ? • Emerging & Transition Market issues: • Low competition level • Focus on Corporate lending • Low focus on SME lending • No relation with SME & Consumer Current Clients Large Co’s and ‘A’ Clients Commercial and Retail Market Under-Served Market © 2006 CRIF Retail and Small Business market

  14. From 3 to 10 years!! From 6 to 12 months CB role in emerging market CEE and CIS markets: benefits from CB • Understandthe basic principles of CB qualities • Aggregate main phases and start the data sharing process • Design the most appropriate corporate structure by thinking globally and acting locally • Technical infrastructure • Quality - auditing process • Commercial policy and evolving plan © 2006 CRIF

  15. Why a Credit Bureau in CEE and CIS market? Why a CB ? Benefits for Credit Grantors: • Assess overall indebtedness level of clients • Avoid “Credit Shopping” • Reduce transaction time and costs • Apply rates according to risk level • Increase operation volumes at the same risk level • Helps avoid lending to consumers who cannot or will not repay (History) © 2006 CRIF

  16. Why a Credit Bureau in CEE and CIS market? Why a CB ? Benefits for Borrowers (consumers and small business): • Get credit more easily • Obtain lower rates according to own risk level • Be protected against future over-indebtedness • Lower costs of borrowing (Lower risk=lower interest rates) • Security of personal data (Information is only accessed with consent for specific purposes) © 2006 CRIF

  17. Challenging puzzle Why a CB ? Bank A : A mortgage from a local bank where salary is paid - Paid monthly - Up to date Leasing company B: A leasing car loan - Paid monthly - Up to date Fourth - Public information & Other: - No court judgements - Applied twice for credit in last 2 years - Never lies on application form - No adverse government records Bank C: An unsecured credit cardfrom a new, foreign bank - Paid monthly - High interest © 2006 CRIF

  18. Challenging puzzle Why a CB ? Bank A : A mortgage from a local bank where salary is paid - Paid monthly - Up to date Leasing company B: A leasing car loan - Paid monthly - Up to date Fourth - Public information & Other: - No court judgements - Applied twice for credit in last 2 years - Never lies on application form - No adverse government records Bank C: An unsecured credit cardfrom a new, foreign bank - Paid monthly - High interest © 2006 CRIF

  19. Challenging puzzle Why a CB ? Bank A : A mortgage from a local bank where salary is paid - Paid monthly - Up to date Leasing company B: A leasing car loan - Paid monthly - Up to date Fourth - Public information & Other: - No court judgements - Applied twice for credit in last 2 years - Never lies on application form - No adverse government records Bank C: An unsecured credit cardfrom a new, foreign bank - Paid monthly - High interest © 2006 CRIF

  20. Challenging puzzle Why a CB ? Bank A : A mortgage from a local bank where salary is paid - Paid monthly - Up to date Leasing company B: A leasing car loan - Paid monthly - Up to date Fourth - Public information & Other: - No court judgements - Applied twice for credit in last 2 years - Never lies on application form - No adverse government records Bank C: An unsecured credit cardfrom a new, foreign bank - Paid monthly - High interest © 2006 CRIF

  21. Suggested Credit Bureau data content CEE and CIS markets: benefits from CB • Positive and negative information • Private individuals; sole traders; SME & corporate data • Type of contractsInstalment operations:(Personal/consumer loan; Mortgage loan; Construction savings loan; Investment loan; Operational loan; Leasing; Export/import loan) • Non-instalment operations:(Credit line on current account; Factoring) • Credit cards & revolving operations:(Credit cards; Charge cards; Revolving loans) • Other public & private external databases © 2006 CRIF

  22. Credit Bureau services evolutionFrom the delivery of credit reports … CB development: the road map Output Branch APPLICATION FORM -------- -------- ------ ------ Input Credit Bureau Applicant Id and Matching Codes, Number of Contracts, Global Exposure, Credit Behaviour, No. of Banks and Financial Institutions, … © 2006 CRIF

  23. … to the management of Decision Processes CB development: the road map Output PUBLIC DATABASES APPLICATION SCORE CREDIT BUREAU DATA & BUREAU SCORE BUSINESS RULES Branch APPLICATION FORM -------- -------- ------ ------ Input Credit Bureau Database Integration, Policy Rejects, Credit Policies, Business Rules, Scorecards, Decision Matrix, … © 2006 CRIF

  24. Our experience with outsourcing of decision processes CB development: the road map BENCHMARKING PLANNING MARKET DEVELOPMENT NEW MARKETS NEW BUSINESS AREAS BEHAVIOURAL PORTFOLIO MANAGEMENT APPLICATION PROCESSING FOR PRIVATE CONSUMERS AND SMALL BUSINESS © 2006 CRIF CREDIT BUREAU

  25. Legal Security Benchmark Consulting Gap Analysis Certification Operations Technical Marketing To run a World Class Credit Bureau CRIF support is available in the following areas: © 2006 CRIF

  26. The right people for you Thank you © 2006 CRIF

More Related