Bucharest, February 10th, 2004 Petr Kucera Senior Regional Manager

1. Romanian Credit BureauTransUnion/CRIF Approach to Successful Implementation and Value-added Services Bucharest, February 10th, 2004 Petr Kucera Senior Regional Manager

2. RomanianCredit Bureau Table of contents • TransUnion, CRIF& IPACRI Introduction • Credit Bureau Experience • Credit Bureau Solution overview; Proposed involvement • The future: Added-value credit bureau services

3. TransUnion Introduction • TransUnion • The USA’s leading consumer credit reporting agency. • Operate credit bureaux in more than 10 and have offices in over 20 markets. • One of the largest databases of consumer information in the world. • More that 4 million credit reports sold daily(1 million online, 3 million in off-line/batch mode). • Receive 12,500 input files per month from 9,000 data contributors. • 3.4 billion rows of data updated monthly on 200 million consumers. • 33 thousand public records updated each day. • Strict policy enforcement to protect credit information confidentiality.

4. Czech Rep. • Canada • Italy • USA • China Representative Office • Korea • Mexico • Puerto Rico • Dominican Rep. • Hong Kong • India • Guatemala • Nicaragua • Costa Rica • El Salvador • Thailand • Honduras • Venezuela • Singapore • Kenya • Colombia • Malaysia • Botswana • Namibia • Swaziland • Australia • South Africa • Zambia • New Zealand • Chile CRIF & TransUnion worldwide Slovakia

5. CRIF Introduction • CRIF • A European, private- and bank-owned company with headquarters in Bologna (IT). • Over 500 employees in 6 countries; extensive growth in terms of revenues and employees. • Leading European provider of information, decision systems, technology and consultancy to evaluate credit risk and develop marketing strategies. • Started in 1988 as the Italian Credit Bureau for the retail and small-medium business credit market (over 90% of market share). • More than 24.000 Users’ branches connected daily on-line.More than 60 million managed and updated lines of information in CRIF databases. • Over 400 scoring and decision solutions systems in 10 countries. • Services provided to Banks, Financial Houses, Insurance Companies and Utilities.

6. Local Partnership • IPACRI Romania • Established in 1994 as a joint venture with ELSAG (Italy). • ELSAG involved in the TRANSFOND project for Clearing and Settlement project. • Key competences in financial/banking market, postal systems, public administration, wireless/PDA applications, document management. • IPACRI Banking and Finance experience covers namely retail banking, treasury systems, credit and market risk management, e-and m-banking. • International exposure: Italy, Germany, Denmark, Saudi Arabia, USA. • Focus on integrated Credit Risk Management Solutionswith special regard to Basel II requirements.

7. Credit Bureau Experience • Credit Bureau Operations Credit Bureau Scoring • Current TransUnion and CRIF credit bureau operations in more than 15 markets • USA, Canada, Mexico, Italy, Australia, South Africa, Hong Kong, Thailand, China…. • US, Canada, South Africa, Bundes Schufa – Germany; Serasa – Brasil; Buro de Credito – Mexico; ICB – Ireland; KSV – Austria (Feasibility study); BIK Poland; Czech Credit Bureau (2Q 04) • Credit Bureau Feasibility Studies • Association Panamena de Credito – Panama; Tireasias - Greece • Other Credit Bureau related activities • KEY FACTOR: Cross-border Data Exchange; ACCIS

8. Eastern European Experience • Czech Credit Bureau Slovak Credit Bureau • Launched in June 2002 (2 years of preparations); 5 founding members (90% of the market); TransUnion, CRIF and a local partner selected by BA. • High hit-rate of 70%; c. 4,500 inquiries daily; expansion of the bureau to leasing companies and construction savings banks (telecommunications). • Current establishment process; 3 largest banks as shareholders (TU-CRIF are operators); EURISC System in outsourcing (Bologna); currently passed legislation (consent not necessary for historical data inclusion) • Croatian Credit Bureau • Banking Association selected TransUnion/CRIF as operators in July 2003; Newco establishment in progress (Feb 04); all Croatian retail banks to participate. • Other CEE markets • Credit bureau project activities: Romania, Russia, Hungary, Bulgaria, Serbia. • BIK Poland: Credit Bureau scoring

9. Types of Credit Registries • We can distinguish credit registries by the following criteria: • 16 European developed economies operate a private credit bureau (6 CEE markets in various stages of development). • Statistics show that positive commercial CB improve credit activity/GDP from 45,1 to 75,7% in 33 observed markets (as opposed to negative bureaux). • Recently, absence of positive data sharing caused substantial financial market collapses in Thailand, South Korea,…

10. Private Credit Bureau CEE situation

11. Credit Bureau 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 • For Borrowers (consumers and small business): • Get credit more easily • Obtain lower rates according to own risk level • Be protected against future over-indebtedness CROSS-INDUSTRY POSITIVE CREDIT BUREAU STRONGLY COMPLEMENTS THE RECENT NBR CREDIT GROWTH REGULATIONS !

12. Credit Bureau Benefits • Time for loan processing:31% - more than 100% reduction 33% - between 25% and 100% • Costs of lending:over 60% - an decrease of at least 25% • Default probability:70% - decrease by 25% or more Source: World Bank study „CREDIT REPORTING SYSTEMS AROUND THE GLOBE, June 2000“

13. Credit Bureau Data Flow • Data Flow Overview Control Committeemonitoring usage Credit Bureau Request sent to CB BANK Client & Contract info appendedor updated in master CB db Client requesting a loan CB DB Credit report retrieved Bank sends an online/batchdata update (to close open contracts) Data update accepted Or anomalies report generated(other reports) Bank Production data

14. TransUnion-CRIF proposed involvement • Project management involvement • Operations and organisational consultancy • Assistance to the technical architecture and data-centre operations setup • Credit Bureau system implementation • Ongoing system maintenance • Constant upgrades via other markets´ installations • Development of ancillary value-added services

15. TransUnion/CRIF credit bureau system • International Credit Reporting System (iCRS): • New generation credit reporting system for international clients • Benefits of current and near future implementations on several markets (both new and current system replacements) • Modular architecture (allows incremental releases of functionalities in line with market demand) • Built on open, standard technology architecture • Reusable, configurable product platform • N-tier, scalable architecture for small to large markets • Flexible system meets unique in-country requirements • Full compliance with valid legislation

16. TransUnion/CRIF credit bureau system • iCRS – TransUnion´s International Credit Reference SystemCRIF´s European and CEE market knowledge and team support; IPACRI local technological and operational support. • Modular System FunctionalitiesDivided into several stages (based on functional analysis):1st stage provides basic functionalities (data update in online and batch mode; data matching and normalisation features; credit report retrieval - online and batch; reporting; accounting; user administration).2nd…n-stage implemented in line with the market demand (focus on added value services: ASP application processing, decision engine, detailed statistical reports, anti-fraud support, credit bureau scoring, CPU-CPU connectivity, account monitoring, etc.). • 1st phase: • Application processing + generic scoring + decision engine integration integrated existing solutions using Credit Flow and Strategy One products.

17. Data security and confidentiality issues Technological security: • Secure private lines (VPN technology, data and transmission encryption, CA) • Detailed access logs; automatic monitoring of excessive use Personal & organizational security: • Closed-end user group; reciprocity rule (only data contributors have access to data) • Strict contractual regulations (MFA, membership agreement: strict rules and regulations, sanctioning system towards members) • Physical access rules; personnel requirements on CB staff Control committee: • Composed of CB staff and users´ representatives • Monitors activity logs; makes inspections at users • Authority to impose immediate rectification, temporary disconnection, and sanctions.

18. Operational & organisational consultancy • Long-term success of a credit bureau is more dependent on the following operational issues than on the software solution itself.For this reason, majority of efficient bureaux work in partnership with established credit referencing agencies. • Shareholding/corporate structure/decisioning issues; business model • Legal support: Personal Data Protection, Consumer protection laws, Anti-Monopoly, cross-industry data sharing, consumer consent, etc. • Pricing structure (model) for Users • Contractual agreements between members • Organisation of Control Committee • Help-desk/client centre organisation (operations manual, etc.) • Support for consumers (issuance of reports for general public, compliance) • Legal disputes handling (individuals; authorities) • Public Relations & Media issues

19. ACCOUNT ACQUISITION APPLICATION PROCESSING ACCOUNT MANAGEMENT EARLY STAGE COLLECTIONS Prioritization Resource allocation Outsourcing Solicitation Cross-sell Portfolio acquisition Approve / Decline Setting initial credit limits Risk-based pricing of loans Limit increase / decrease Authorizations Reissue Credit Bureau Data Usage

20. Value-added Credit Bureau Services Basic and future functionalities of the Credit Bureau System: • CREDIT DATA SUBMISSION (ONLINE AND BATCH) • CREDIT REPORT RETRIEVAL (ONLINE AND BATCH) • APPLICATION PROCESSING SUPPORT(INTEGRATION OF GENERIC/CUSTOM SCORING MODELS AND CREDIT STRATEGIES) • INTEGRATION WITH STRATEGY DESIGN & MANAGEMENT SW PACKAGES AND OTHER PRODUCTS OF TRANSUNION AND CRIF • CUSTOMISED STATISTICAL AND USAGE REPORTS • AUTOMATED MONITORING FEATURES (ALERTS) • MONITORING OF TOTAL CREDIT EXPOSURE • ANTI-FRAUD SYSTEM • CREDIT BUREAU SCORE IMPLEMENTATION • SUPPORT FOR INTERNAL RATING SYSTEMS (BASEL II) • ………

21. Romanian Credit Bureau – Summary • Credit Bureau is NOT an IT projectKnow-how transfer; Proprietary TransUnion/CRIF knowledge of banking systems in many markets; Complex data normalization/validationchecks,… • Handling Personal Data Protection & Anti-monopoly Laws…Specific ability to overcome obstacles in „non-IT“ areas. • Proven CB solution providers for CEE marketsTransUnion/CRIF are the only players with experience in CEE markets (current CB work in progress in 6 CEE markets); dedicated CEE team of professionals. • Synergies with Additional ServicesApplication processing, Credit scoring; Anti-fraud database systems, etc.… • Cross-border Data ExchangeCRIF is the initiator of Key Factor (information sharing among European credit bureaux). • Strong local market supportIPACRI Romania is an established local company providing serviceson the Romanian financial market.