EXPERIAN CREDIT BUREAU

Credit Bureau Expertise

• What is a credit bureau?

• A credit bureau is an independent organisation that compiles information from credit grantors and other (private and public) sources about individuals' credit applications and payment behaviour.

  The information sharing role of a credit bureau system helps creditors to assess risk and allocate credit more efficiently. This also means that borrowers do not need to rely on personal relations when trying to obtain credit. Credit lenders can benefit from a range of bureau data-based solutions to support risk, fraud, customer monitoring and debt management processing.

  

• What is the main role of a credit bureau?
• • Promote and facilitate a data sharing culture among credit granting organisations
  • Provide users with accurate information to support credit application processing and account management objectives
  • Help lenders reduce the risk of granting loans likely to default
  • Support fraud prevention procedures
  • Enable loans to be granted with less collateral/security.
  • Protect consumers against over-indebtedness by allowing for responsible lending by the grantors.
  

• What information does a credit bureau provide and to who?

• Credit bureaus provide credit providers (e.g.banks, credit unions, telecommunications and utility companies) with the credit history information of consenting credit applicants and customers.

  Experian credit reports vary by country, but typically include identification information, past and present credit obligations, court judgments, suspected fraudulent applications and previous addresses.

  The type of information that will be collected in Australia, its disclosure, and the use of the information by credit bureaus and credit providers is tightly regulated by legislation, including The Privacy Act of 1988.

  

• How is this information used?

• Credit information is used by lenders across the entire customer lifecycle, including at point of origination, for account management, and to assist collections. At the credit application stage, credit reference checks are undertaken to verify the applicant’s identity, assess credit risk and the potential for fraud, and set the terms and conditions of the credit offer. Credit information is also used to drive account management and customer retention programmes.

  Changes in a consumer credit report often provide an indication of change in the risk or opportunity presented by existing customers. Experian’s credit reports also help improve the return on collections processes by optimising collection efforts, locating debtors and confirming and updating contact details.

  

• Why is a credit bureau important?

• The UN agency, International Finance Corporation (IFC) says that "credit bureaus are essential not only to individual prosperity, but also to a country's overall economic growth"

  • Governments and Central Banks need credit bureaus to help control consumer and business indebtedness.
  • Lenders need credit bureaus to assess risk and allocate credit more efficiently by making more informed decisions.
  • Lenders need credit bureaus to assess risk and allocate credit more efficiently by making more informed decisions.
  • Consumers need credit bureaus to gain credit more easily, without having to rely on personal relations with the lender.
  • Businesses need credit bureaus to have greater access to credit with better interest rates.

   

  

Credit Bureau Information

• How does a credit bureau obtain data?

• The majority of credit bureau data is provided directly by credit providers, such as banks, credit unions, telecommunications, and utility companies. Credit bureaus also collect publicly available information as permitted by law.

  

• How is credit bureau information stored? Who can access credit bureau data?

• Credit bureau information is stored in a secure database. Only registered bureau subscribers that have obtained legal consent and have permissible purpose may access the database. Access to the database is strictly monitored and controlled by the bureau.

  

• How does a credit rating service company differ from a credit bureau?

• A credit bureau is a credit reporting agency - it collects and aggregates data from credit lenders & public sources. A credit rating company, on the other hand, assigns ratings for issuers and servicers of debt obligations. In some cases, the credit rating agency uses credit information from a credit bureau to assess the credit worthiness of a debt issuer.

  

Experian Expertise

• Why is Experian Credit Services launching in Australia?

• Experian has over 15 years experience in the Australian financial services market and we believe there is an important opportunity to increase competition and deliver a high value service to Australian financial institutions.

  Our well established Australian business and partnerships with many of the country’s leading financial institutions has created the platform to launch the credit bureau. The new credit bureau will improve transparency for businesses and consumers about the credit granting process and deliver better industry pricing, services and solutions. .

  

• Which credit bureaus does Experian operate around the world?

• We are the leading global provider of credit bureaus and bring over 30 years of international financial experience to the venture. We operate 18 successful bureaus across the world, including the largest national credit databases in the US, Brazil and the UK.

  

Data Sharing

• Can we still partner with Experian on the new bureau?

• Absolutely, we welcome the opportunity to work with other companies in the process of establishing the bureau, through strategic client advisory groups and data sharing and supply. All authorised credit grantors in Australia will have full access to the bureau.

  

• How can my organisation get access to/share data?

• Experian Australia Credit Services will be an industry wide service and credit grantors will have full access to the bureau. Please complete the information form on the Credit Services page of the website and we will arrange for someone in the bureau to contact you to find out how you can provide data or access services.