It is becoming increasingly common for lenders to consider the potential benefit from multiple credit bureau searches to enhance the credit risk assessment of an individual. For many organisations, there are clear financial benefits from utilising multiple bureau reports, with observed bad debt reductions of 10-15%.
One of the biggest challenges you may face is having the visibility of all credit bureau data belonging to your customer. If you could see which customers have limited data, and which have incomplete data from your primary credit bureau provider – would this influence what steps you’d take next? A multi-bureau strategy could enable you to obtain more of your customers’ data: overcoming the challenge of thin files and enhancing your decision making.
A key part of any multi bureaux solution is the associated analytics. Experian has developed a solution that not only makes the best use of the data available, but also optimises the decision to only make a second or third credit bureau search when it’s going to add value; therefore managing the overheads associated with multiple searches. Any information returned is combined, merged, de-duplicated and presented in a consistent, summarised block of data.
Experian’s Bureau Confidence Index (BCI) This is essentially a new ‘score’ that predicts whether data returned from a second or third bureau call is likely to be relevant to the accept/decline decision. It considers various factors in order to identify where incremental data from a subsequent bureau call is likely to be significant.