Chris Curtis, Head of Bureau Analytics, gives and overview of the latest position.
In the past, credit bureau data has traditionally hinged on information directly provided by mainstream lenders such as banks, credit card and personal loan providers, to help underpin responsible and appropriate decision-making.
But more recently the type and volume of shared data through the credit bureau has significantly expanded to include consumer information from utility companies, insurers and mobile telecommunications providers.
Now, it’s not just about tapping into a virtual fire hose of available information – the ability to analyse and create rich data is critical to help ensure lenders make responsible, appropriate, consistent and viable decisions.
For example, this is reflected in the way clearer credit card decision-making takes place, when card use and income estimates from current account turnover can be used for predictive income estimation.
The on-going expansion in credit bureau data continues to provide a far more comprehensive picture of consumers, including the young, elderly, or any individuals who may simply be credit-averse. It means there are now very few segments of society that are not represented and as a result, many more people are now able to take advantage of easier ID authentication to gain greater access to everything from utilities, government services, ecommerce or online banking channels.
But more recently the type and volume of shared data through the credit bureau has significantly expanded to include consumer information from utility companies, insurers and mobile telecommunications providers. Another key data source that broadens information stored within the credit bureau is the recent addition of rent payment information
However, as different types of data gets added to the credit bureau, the impact it has on existing scorecard characteristics also needs to be considered. Generally the presence of good settled accounts is regarded as a positive factor in a risk scorecard. But if there are indications that a consumer has an over-reliance on borrowing, or heavy financial commitments elsewhere, it would be more responsible to take these factors into account too. Incorporating information from different vertical markets within the credit bureau requires granular consideration of each source in terms of how it can be enriched to provide insight into consumer needs and debt profiles.
We’re constantly evolving the way that credit bureau data is used both within bespoke solutions for individual clients and our market-leading bureau scores. As the growth and prevalence of credit bureau with the addition of new types of data to the credit bureau takes off, it is going to have a great impact in the future.
To find out more about our Credit Bureau services, please click here. Alternatively, if you believe you could benefit from more enriched credit bureau data, then talk to an Experian consultant, or contact us direct. We can provide data for analysis and / or work with you to review and safeguard your lending strategy.