These additional services provide differentiation between competing credit bureaus and provide an important source of revenue when the basic credit data becomes a commodity.
In most mature markets, competition leads to price deflation for the base data. This has to be countered with higher margin products and services.
After Scorto Bureau Nucleus deployed in your credit bureau, you will be able to provided your subscribers with the following value-added services:
- Credit Scores. The bureau score establishes the probability of repayment, or risk of bankruptcy/default and is developed using data analysis and statistical techniques. The bureau score is offered either individually or as an additional item of data over and above the base credit reference data.
- Customer monitoring. In its simplest form consumer monitoring is a service that alerts a lender that new negative data associated with one of its customers has been loaded to the credit bureau. Scorto Bureau Nucleus provides the alert message back to the lender in electronic file or via web interface.
- A more sophisticated version of this service provides a credit score back to the lender on a regular basis for each of its customers. This data can then be incorporated in automated scoring and decision-making to set credit limits, collections strategies, etc. This type of service does rely on the sharing of positive data.
- Verification. This is a service that confirms the existence of a combination of the applicant’s name, address and ID number using data held by the Credit Bureau. It is particularly useful for remote applications where it is not possible or not practical for the applicant to provide paper evidence such as a utility bill.
- Authentication. This is an extension of a verification service. It uses data held by the Credit Bureau to validate responses given by a credit applicant. It can also be used to authenticate a credit card holder who is making a remote ‘card not present’ purchase.
- Consumer tracing. This service uses the credit bureau’s data to find the last known address of an individual. The service is popular with customer management and tracing departments.
- Further Services. While the provision of basic credit reference services is the initial product offered by a Credit Bureau, further products should follow in a timely manner. These products will be required as the credit market develops, stimulated by the new credit reference service. Credit reference scoring (bureau scoring) and application fraud prevention products are likely to be needed very soon after the launch of credit referencing. With Scorto’s Loan Decision, and Fraud Barrier products, you will be able to quickly and seamlessly implement these value added services into your portfolio.