Getting the most from your Credit Reports · BIQ Google maps integration – helping spot potential...

© 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


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....


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


Is this really a PLC business? BIQ Google maps integration – helping spot potential fraud


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!

http://advocatesstudio.com/wp-content/uploads/2011/05/linkedin.jpg

https://en.wikipedia.org/wiki/File:EBay_logo.svg


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


Integrating payment date into the Experian Delphi Score makes it an excellent predictor of company failure



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


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?


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


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



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


Dashboards help summarise key report content and improve usability


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


Please consider the environment (and good credit management) by not printing this report!


One month of credit reports = c 2.9m pages = 133 storage boxes


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%


Simple features that save you time and money!


Alerts are important BUT how do you cut out the noise?


BIQ lets you configure what alerts you see and their relative importance


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


Portfolio Filters From a Macro to a Micro view in a few clicks


•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:


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


MI is great – but actionable MI is better


Q. How can credit reports help me be more efficient at opening accounts?


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


It’s as simple as adding your recommendation on the top of a report!


You don’t need to follow the Experian recommendation…BIQ lets you set your own rules


And the changes are instant across your whole business…


The system keeps a record of the reasons behind each decision you make….


….with the ability to make manual overrides in a consistent and auditable way…


…you even benefit from input standardisation which reduces errors, saving time and increasing sales


Full MI enables you to track the success of your automated decisioning and make improvements over time…


Using credit report data to help with collections activity


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


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


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


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


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


What change can I expect to see in future credit reports?


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?





How can credit reports help me be more efficient at opening accounts?

Can using credit report data help with collections activity?


What changes can I expect to see in future credit reports?

Agenda


BusinessIQ - 30 day free trial

Getting the most from your Credit Reports · BIQ Google maps integration – helping spot potential...

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Transcript of Getting the most from your Credit Reports · BIQ Google maps integration – helping spot potential...