22 Nov 2006 16:17

Experian-Interfax launches bureau scoring system

Experian-Interfax credit history bureau has announced the launch of a new service for scoring potential borrowers, which is expected to help banks use information provided by the bureau more effectively in deciding whether or not to extend credit to an applicant.

The scoring system follows extensive development work by Experian-Interfax jointly with Britain’s Experian-Scorex company, which has created bureau scoring systems throughout the world, during which more than a million applications for credit were examined over a 12 month period.

The tests conducted indicate that a bureau scoring system, if involved in decision-making, could help lower problematic debt by an average of 7%-12%, Vladimir Gerasimov, a member of the Experian-Interfax board of directors, told a seminar on the launching of the bureau scoring system. “We are happy that this innovative project on the Russian market has been welcomed by most of our key clients, and we hope they will duly appreciate all advantages of this advanced know-how,” Gerasimov said.

The scores, which range from 1 to 1000, rate how risky a borrower is on the basis of the borrower’s credit history and socio-demographic and other characteristics.

By November 15, the bureau had processed over 600,000 inquiries. While searching for information about previous borrowers, the hit rate normally stands at 40%-50%.

1.8 million entries. The bureau cooperates with 170 lending organizations, including major banks active in the consumer credit market.

In early October, Experian-Interfax credit history bureau announced the completion of its system’s integration with the Acquire SM product, developed by Experian-Scorex, which banks use to assess risks and borrowers’ reliability.

***Experian-Interfax was founded in October 2004. Its owners are Interfax Information Services Group, a major provider of information and services for financial markets, and Experian, a global leader in providing analytical and information solutions to organizations and consumers to help manage the risk and reward of financial decisions. The credit bureau was founded to provide information reflecting the borrowers‘ accuracy in fulfilling their credit obligations and improving the creditors‘ and borrowers‘ protection against credit risks. Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organisations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage. For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence.

***Experian works with clients across diverse industries, including financial services, telecommunications, healthcare, insurance, retail and catalogue, automotive, manufacturing, leisure, utilities, e-commerce, property and government. A subsidiary of GUS Plc with headquarters in Nottingham, UK, and Costa Mesa, California, U.S., Experian has personnel of 12,500 people in 2832 countries. Annual sales are in excess of 1.7 billion pounds.