A credit bureau is an organization that collects and maintains credit information on individuals and businesses. It provides credit scores and reports that tell lenders about the risk level of a potential client so they can determine whether to approve loans and at what interest rates. The information helps lenders make informed decisions, and having a good credit history allows individuals and businesses to access more affordable credit options.

1. Creditinfo
A proven world class Credit Bureau operator
Shane Moldenhauer
Head of Business Development – East Africa
July 2014, Nairobi.

2. Question
How many of you know what a
Credit Bureau is and what it
does?
How many of you think a Credit
Bureau can benefit you and your
business in a positive way?

3. Agenda
• Introduction to Creditinfo
• Credit Bureau explained
• Creditinfo’s Credit Bureau Solution

4. Let’s have a conversation
Not a broadcast
presentation

5. Agenda
• Introduction to Creditinfo
• Credit Bureau explained
• Creditinfo’s Credit Bureau Solution

6. About Creditinfo
• We provide credit information and credit risk management
solutions and tools.
• Creditinfo Group hf. established 1997 in Iceland
• Currently operating 19 subsidiaries /affiliates in 16 countries,
approx. 250 employees
• Creditinfo Kenya established in 2014
• Endorsed by and have long term relationships with internationally
recognized authorities & organizations
• World Bank
• International Financial Corporation (IFC)
• Central Banks & Banking Associations in different countries

7. Starting Credit Bureau Operations
from a ZeroBase
• dealing with different rules and
regulations, different cultures and
mentalities
• different data structures and data
quality, different IT infrastructures
• different data protection/credit
bureau laws

8. Agenda
• Introduction to Creditinfo
• Credit Bureau explained
• Creditinfo’s Credit Bureau Solution

9. A common problem
Finance is a barrier to growth
for many
businesses worldwide.

10. What is the issue?
• Lenders need to have reliable information to
make lending decisions
• Consumers and businesses need to be able
to give evidence to the lenders to prove
their reliability
• Regulators need to be able to monitor risk
with lenders and within the marketplace

11. The Solution
A Credit Bureau

12. What is a Credit Bureau?
A few definitions:
• Sometimes called a credit reference agency, credit
information company or credit registry
• A firm that maintains consumer credit data files and
provides credit information to authorised users
• An agency that collects individual credit information
and provides it to creditors so they can make a
decision on granting loans. Typical clients include
banks, mortgage lenders, credit card companies and
other financing organisations.

13. Credit Bureau – The Concept

14. Would you lend a stranger…?
10,000 Kenyan Shilling
100,000 KES
1,000,000 KES

15. What questions would you ask?
Before YOU lend any of
YOUR own money to
someone….
What information would
you want to know?
What questions would YOU
ask?

16. Let’s have a conversation
Not a broadcast
presentation

17. What questions would you ask?
Before YOU lend any of
YOUR own money to
someone….
What information would
you want to know?
What questions would YOU
ask?

18. Possible Questions
• Do I know them?
• Can I trust them? To do what?
• Can I trust them to repay me
• What terms have been agreed or do you want?
• Is repayment “just whenever” possible?
• Will they use the money wisely? What is wisely?
• If something happens to them…..
• Where do I stand?
• How do you get my money back?
• Am I being reimbursed for the risk?

19. A Credit Provider Asks Similar Questions
We may want to frame the questions in the following manner …..
Can I use data to identify the potential
customer to ensure they are who they say
they are?
Has the potential customer got a history of
good payment performance, showing
responsible attitude to credit
commitments?
Does the potential customer have a high
current state of indebtedness,and have
they historically paid the amount that they
would need to in the future?
Has the customer being shopping at many
places for loans and potentially be declined
by other lenders?
Has the potential customer got a history of
unpaid loans?

20. Where does a Credit Bureau
get the data from?
Example Sources:
• Banks
• Credit Card issuers
• Loan agencies / Finance houses
• Telecommunication companies – mobile phone,
landline, internet providers, tv suppliers
• Utility Companies – electricity, gas, water
• Insurance companies
• Debt collection agencies / Debt Purchase agencies
• Public court records
• Rental Agreements
• Retail credit, home & online shopping - Travel,
Entertainment, Department store cards
• Direct from the consumer – from you!

21. Data Sharing Concept
of a Credit Bureau
Originators of the Data are the Credit Grantors & Official Sources
MFIs, Retailers,
Telcos
Courts etc
Simplified Credit Report
Name and Address
ID Number
Customer Status
Customer Details
Bad Debt – Overdraft 65655
Default Date 04-05-09
Amount $1,000
Negative Details
Loan 11122
Date – Open 17-11-09 – Closed --------
Loan Amount $1,000
Basic Positive Details
Loan 34566
Opened Date 17-11-09
Loan Amount $1,000
Current Balance $ 475
Monthly Repayment $ 45
Payment History 01000032100000
Collateral - None
Full Positive Details
Credit Bureau
consolidates and
manages the
information
CREDIT BUREAU
Banks

22. What is a Credit Score / Credit Report?
It is the starting point of
a pre-approval for credit.
• A number generated by mathematical formulas
and statistical models which helps the lender
determine if you are a good risk.
• The higher your score, the lower the risk you are
to lenders.
• Your financial CV
• A snapshot of your credit risk picture at a
particular point in time.
• A predictor of your future payment performance
based on prior experience

23. Sample Credit Report
Company Details
Company Summary

24. Sample Credit Report
Risk Indicator

25. Sample Credit Report
Court / Direct
Information

26. Sample Credit Report
Company
Ownership
• Director
Involvements

27. Sample Credit Report
Capital
Company Involvements

28. Sample Credit Report
Annual Financial
Statements

29. Sample Credit Report
Recent Enquiries

30. Who can see your Credit Report?
• Any creditor or lender to whom you have applied for
credit
• A mortgage lender, when you apply for a home loan
• A property management firm, when you apply to rent
• A prospective or current employer on a need to know
basis
• An insurance company, when you apply for insurance
• A mobile phone company when requesting a phone
contract
• Anyone you have given permission to
• Anyone with a legitimate reason to know
• YOU!

31. How does this help you?
• Provides you with more credit options
• Reduces the cost of credit
• Reduces the need for physical collateral
• Allows for faster decision taking
• Prevents over indebtedness
• Prevents ID fraud

32. Benefits of a Credit Bureau
Score and Report for you
• Improved access to credit
• more options for more people
• Better terms and reduced interest rates of borrowing
• Reduce the need for physical collateral
• Pre-approval to credit rather than instantly refused
• Quicker decisions
• Reduces the risk of over indebtedness
• Reduces the risk of fraud, ID theft and money laundering
• Enables customer to effectively check the information
used by lenders and challenge decisions
• A fairer way of assessing your access to credit
A financial footprint enables
lenders to determine whether
to provide credit terms and at
what rates.

33. Benefits for the Lender
• Using shared data to check data accuracy and
supplement missing information
• Can offer better terms and rates
• Can offer credit terms to more people where as
before they may have instantly declined individuals
and businesses
• Alerts them if a customer is getting into difficulty
i.e. someone may stop paying another lender

34. Benefits – the bigger picture
Credit Bureaus can:
• Drive steadier financial market development
• Improve economic stability
• Create greater opportunity for economic growth
• Create greater productivity
• Increase repayment rates, less defaults
• Reduce in interest rates
• Enable tracking and monitoring of economic activity at a
macro and geographic level and of financial service
providers
• Promote responsible lending
• Improve economic country scores from organisations
such as Standard & Poor, Moody’s and Fitch

35. The Evidence from the beginning
Small firms benefit
from
credit bureaus
Estimates based on data on 5000 firms in 51 countries
Source: Love & Mylenko (2003).
49%
27%
Without
credit bureau
With
credit bureau
% of Small Firms Reporting
High Financing Constraints
28%
40%
Probability of Obtaining a Bank Loan for a
Small Firm
Without
credit bureau
With
credit bureau

36. What do we do?
Our focus is on complete solutions in
credit risk management:
- Providing scoring, decision engines, pricing modules,
etc.
- Fraud prevention tools, work flow collection
software & other credit tools
- Consulting on credit processes, risk management,
seminars and training

37. Creditinfo has developed.....
• A modern software solution, which covers
requirements for a full-file, non-fragmented, private
credit reporting system for sharing positive and negative
information among different types of financial and non-
financial institutions
• A strong partnership with local credit providers; banks,
MFIs, loan companies; telcoms; utility companies;
insurance companies; etc

38. Why Creditinfo’s Credit Bureau
Solution works
• Proven implementation
• Consistent and accurate data from various approved
and confirmed sources
• Regulation, Monitoring, Audits and Control
• Flexible, transparent and easy to understand reports
• Can cover all data subjects, creating financial inclusion
• Includes both traditional and alternative data
• ALL relevant data
• Includes positive and negative data
• Collaborative approach to build processes and
systems for data sharing

39. What should you do to improve your
access to finance?
• Take control of your financial footprint
• Take an active role in managing your credit
• Review the things that effect your credit
score
• Review your credit report regularly
(annually / bi-annually)

40. Creditinfo Credit Bureau
DEMO

41. Summary – What is a Credit Bureau
An organisation which collects
and maintains credit
information on individuals and
businesses and allows lenders
to access that data to make
informed credit lending
decisions

42. SUMMARY:
What does a Credit Bureau do?
Provides a credit score / report
which tells a lender the risk factor
for that client so the lender can
determine whether to accept a
client or not and the rate the client
qualifies for.

43. Questions and Answers

44. Create your financial footprint
• https://www.surveymonkey.com/s/createmyfootprint
• This data will be upload at a later date into the Credit
Bureau system
• We will contact those who have provided data.

45. For clarification or further information
please contact us
Shane Moldenhauer
Head of Business Development
East Africa
Tel: +254 701 057 702
E-mail: smoldenhauer@creditinfo.com
Skype: shane.molden
Websites and Social Media
www.creditinfo.com
www.creditinformation.com
www.creditinfosolutions.com
Company Linked In page :
www.linkedin.com/company/creditinfo-group
Company Facebook page:
www.facebook.com/creditinfo.group
Company Twitter page:
www.twitter.com/CreditinfoGroup