getting the most from your credit reports · biq google maps integration – helping spot potential...
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© 2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Confidential
Getting the most from your Credit Reports Delving into the detail of its components Bernie Grady
2 © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Confidential
What makes up a credit report?
How can I keep up to date after I’ve accessed a report?
How can credit reports help me manage my portfolio?
How can credit reports help me be more efficient at opening accounts?
Can using credit report data help with collections activity?
What are the benefits of managing credit data in one platform?
What changes can I expect to see in future credit reports?
Agenda
© 2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Confidential
What makes up a credit report?
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Content
• Public data • Private licenses • Own sourced • Data sharing • Access control
Quality
• Keying accuracy • Timeliness • Validation rules • Verification process • Benchmarking
Coverage
• Limited • Non Limited • Directors • Proprietors • International
Getting the most from your Credit Reports
Is all about the DATA....
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Comprehensive data sources underpin Experian Credit Reports Updated daily with unique data to Experian
Sanctions
UBO
SIC codes
Ltd Cos.
Shared Data
Prev. Cred App.
URA Ownership
Public Notices
Non Ltd Bus.
Inter -national
Consumer
Directors
Payment Performance
Verification of Individuals 48m electoral register records
Ultimate Beneficial Owners Shareholder and Director aggregation & calculations
PEP and Sanctions 6,200 businesses
Business Classification 6.7m Co’s 2.7m Active
CAPS
Director Verification 12m records 7m directors
CAIS
International Data
24m Shareholders 400k Corporate links,
100k M&A relationships
23.5m directorships 18m individuals
6.7m Co’s 2.7m Active
830k CCJs 500k Closures
Directories 6.0m
Public Acquired Unique Restricted
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Is this really a PLC business? BIQ Google maps integration – helping spot potential fraud
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Commercial CAIS and Payment Performance are our customer networks Collating their payment experiences into actionable information
Data sharing programmes
78% of people trust their networks
14% of people trust what companies say!
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The trend in speed of invoice payment (Days Beyond Terms) is even more reactive to cash-flow constraints and does not suffer from the time lag of relying on filed accounts
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Integrating payment date into the Experian Delphi Score makes it an excellent predictor of company failure
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Getting the most from your Credit Reports
Is all about the DATA.... .... the approach to credit scoring....
Outcome
• Failure • Default • Late payment • Time period
Design
• Statistical model • Hand crafted • Sample size • Variable design
Calculation
• Real time • Periodic • Upon data update • Accounts filed
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A single, harmonised score to assess credit risk for any active business
Works for: - Large, medium or small businesses - New and established businesses - Limited and Non-Limited businesses
- Pulls together the most relevant and predictive business and consumer data – to assess the behaviour of the business AND its owners
- Uses Strategy Management technology to apply appropriate scorecards and credit limit calculations
- Returns a 0 –100 score calibrated across all populations
Overview What is Commercial Delphi?
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Consumer data is a key component of the scorecards for certain populations
These include small companies and start-up companies
Rules agreed with the Information Commissioner mean that consumer data can only be used for scoring small, independent companies where consent has been granted
Number of Directors
3 or fewer & Independent
4+ directors or part of group
Directors Delphi Score
Non-CAIS members Default CAIS Full CAIS members
Get the most from your credit reports by… …getting permission to access Consumer data
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Cumulative Good percentage
Cum
ulat
ive
Bad
per
cent
age
0
10
20
30
40
50
10
60
70
80
90
100
20 30 40 50 60 70 80 90 100
Gini measures the separation of goods and bads across the score range. Gini = A / (A + B)
Cumulative Goods vs. Cumulative Bads
Commercial Delphi scorecard
Random scorecard
Limited Company Ranking order of scorecard
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Getting the most from your Credit Reports
Is all about the DATA.... .... the approach to credit scoring....
Outcome
• Failure • Default • Late payment • Time period
Design
• Statistical model • Hand crafted • Sample size • Variable design
Calculation
• Real time • Periodic • Upon data update • Accounts filed
.... and how exceptions are handled
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Dashboards help summarise key report content and improve usability
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Accounts Filed Early
Auditor/Accountant Commentary Accounts Qualification Indicator
Frequent Registered Office Changes
Frequent Company Name Changes
Registered Office and Director Changes
Failed Directorships
Current Director who is disqualified
CIFAS Alert
Tasks & Notes can be stored to help customer management
Alerts bring attention to key items within a report & & additional functionality helps customer management
© 2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Confidential
How can I keep up to date after I’ve accessed a report?
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Please consider the environment (and good credit management) by not printing this report!
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One month of credit reports = c 2.9m pages = 133 storage boxes
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Highlights the need to keep records up-to-date
Questions the value of print and storage
The volume of changes within the data used to create a credit report are significant
Description Average Daily
Changes
Average Annual
Changes % of Active
Business
Ltd Company Address Change 1,703 529,633 19%
Ltd Company Name Change 281 87,391 3%
New Accounts or updated accounts filed 7,139
2,220,229 80%
New Directors 19,279 5,995,769 216%
Directors Name Changes 9,122 2,836,942 102%
Directors Address Changes 11,359 3,532,649 127%
Adverse Credit Event (for Ltd companies) 1,323
411,453 15%
New Bankruptcy (for non Ltd companies) 222
69,042 2%
New Judgment 364 113,204 4%
Risk Score Change 25,878 8,048,058 290%
Risk Credit Limit Changes 18,487 5,749,457 207%
Risk Credit Rating Changes 16,692 5,191,212 187%
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Simple features that save you time and money!
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Alerts are important BUT how do you cut out the noise?
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BIQ lets you configure what alerts you see and their relative importance
© 2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Confidential
How can credit reports help me manage my portfolio?
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Load prospect, supplier or ledger data into Standard Portfolio
Updates of Experian data on your terms (daily/30/60/90 days or user defined)
BusinessIQ Standard Portfolio – Manage your business relationships to help manage risk, decrease cost and identify opportunities
•Use customisable filter options to create account lists and segment accounts
•Obtain a snapshot summary, including Experian Credit Limits, Risk Bands and Commercial Delphi Score
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Portfolio Filters From a Macro to a Micro view in a few clicks
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•Days Beyond Terms score •Days Beyond Terms trend •Days Beyond Terms history •Days Beyond Terms core over time
BusinessIQ Ledger Portfolio – Daily updates of Experian data at your fingertips
•Multiple sales ledgers and an aggregated ledger view*
Displays Ledger Data:
Access to additional insight:
Enhance the data further by providing Payment Performance Data:
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xxxx
With over 20 comprehensive analysis views, assess trends and view the businesses behind the trends:
BusinessIQ Ledger Portfolio – Daily updates of Experian data at your fingertips
•Determine changes: •Changes in credit risk over time •Changes in payment behaviour over time •Common trends across groups of account in your portfolio
•Geographical and industry trends •Total group exposure to potential bad debt
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MI is great – but actionable MI is better
© 2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Confidential
Q. How can credit reports help me be more efficient at opening accounts?
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What benefits does automation have when processing applications?
The organisations that have adopted automation shared a number of common goals:
Reduce operational
costs
Consistent use of credit
policy
Ease of scalability
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It’s as simple as adding your recommendation on the top of a report!
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You don’t need to follow the Experian recommendation…BIQ lets you set your own rules
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And the changes are instant across your whole business…
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The system keeps a record of the reasons behind each decision you make….
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….with the ability to make manual overrides in a consistent and auditable way…
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…you even benefit from input standardisation which reduces errors, saving time and increasing sales
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Full MI enables you to track the success of your automated decisioning and make improvements over time…
© 2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Confidential
Using credit report data to help with collections activity
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By combining internal and external data, and monitoring trends, actionable segments emerge, which can be tailored to fit or be used to build a collections strategy
External risk / collections profile (Experian Risk Scores)
Debt value x Age
Collections experience / debt trends
Strong Weak
Lo
Degrading
Hi
Improving
High debt, but external perspective and trends positive
Bey
ond
resc
ue
Tier 3 targets – lower cost channels
Limited exposure
Immediate targets (Biggest wins and challenges)
Tier 2 targets
Sel
f-cur
e –
mon
itor o
nly
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BusinessIQ Encourage improved payment behaviour from your customers
Clearly displayed campaign results
Create new or add Segment your portfolio and submit account into a collections campaign
Select businesses directly from your portfolio:
Measure success of individual campaigns:
Take action to recoup outstanding balances: Two types of letters
• Pre-delinquency to remind customers of their next payment date
• Delinquency to encourage payment of overdue accounts
© 2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Confidential
What are the benefits of managing credit data in one platform?
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BusinessIQ Integrated modular approach to credit management
Reports: High level quality UK/International business
information reports. Access purchased reports
Decisioning: Achieve efficiencies with 3 levels of automated decision making, choosing the right level for your business needs. Accurately reflect your credit policy in an automated fashion to reduce inconsistencies
Portfolio: Refresh the business information in your portfolios at the frequency your business requires. Portfolio provides advanced analysis solutions so you can effectively manage individual credit risk, whilst clearly understanding your overall portfolio exposure
Alerts: Updates on business changes allowing you
to prioritise early warning signs that are important and significant to your business
Collections: Seamlessly feed customer accounts straight
to the Collections module and leverage Experian’s brand power to stimulate repayment and improve collections
Web based platform that helps credit professionals manage the entire commercial lifecycle from customer acquisition, through to customer and
portfolio management and collections
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Tailor your home page to quickly access:
BusinessIQ Your morning board in the cloud
Company One 00000000 78 25 0 Company Two 00000000 25 75 1 Business Three 00000000 15 68 1 Company Four 00000000 18 59 2 Business Five 00000000 23 16 0 Company Six 00000000 32 56 0 Company Seven 00000000 32 56 0 Company Eight 00000000 22 42 0 Company Nine 00000000 56 31 0 Company Ten 00000000 42 90 1
14/09/12 21/09/12 10/10/12 18/10/12 14/09/12 18/09/12
01/10/12
01/10/12 30/09/12 30/09/12
User A
Watch list: Track customers within your portfolio by setting up your own watch list
My tasks: Create, manage and prioritise workload aligned to your business priorities
Alerts: Receive early warning alerts of business changes for those businesses you are watching
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Getting productive – FAST
Built-in resources: ► User guides ► How to guides ► Webinars ► Context sensitive help
Delegated authority to: ► Set-up new users ► Create roles ► Assign capabilities ► Apply restrictions ► Clone ► Reset passwords ► Lock & delete
© 2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Confidential
What change can I expect to see in future credit reports?
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Fast data load times
Positive Payment Data
Previous Search
Analytics
Social & Commercial
Media Content
Benefit from Directors Usual
Residential Address Data
VAT Data – Yes I said VAT data!!
Increased availability of
ownership data
What change can I expect to see in future credit reports?
48 © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Confidential
What makes up a credit report?
How can I keep up to date after I’ve accessed a report?
How can credit reports help me manage my portfolio?
How can credit reports help me be more efficient at opening accounts?
Can using credit report data help with collections activity?
What are the benefits of managing credit data in one platform?
What changes can I expect to see in future credit reports?
Agenda
49 © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Confidential
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