The role of credit reporting in supporting financial inclusion and responsible finance, recently discussed at the latest industry world conference
October 21-23, 2012
The 8th World Consumer Credit Reporting Conference was held in Taipei, Taiwan on October 21-23, 2012. More than 200 participants, decision-makers and experts in credit and credit reporting from all over the world attended the meeting to discover the latest developments in the credit bureau industry and to share knowledge about the information exchange issues in each country.
Enrico Lodi, Vice President of ACCIS (the European Association of Credit Bureaus) and General Manager of CRIF Credit Bureau Services, moderated the session titled “Credit reporting systems and their influence on responsible lending and borrowing and the role of positive data and its effect on banking risk assessment”.
Enrico Lodi, Vice President of ACCIS (the European Association of Credit Bureaus) and General Manager of CRIF Credit Bureau Services, moderated the session titled “Credit reporting systems and their influence on responsible lending and borrowing and the role of positive data and its effect on banking risk assessment”.
Starting from recent highlights reported in IFC and World Bank analyses, Lodi focused his attention on the hottest industry topics on a worldwide level: financial inclusion and responsible finance. Both these topics are cross-cultural and relevant in developed as well as in developing markets.
Despite the significant efforts made during the last decade, financial inclusion is still globally weak, Lodi argued, with half of all working-age adults unbanked, and 77% of the poor population. Also taking data on micro, small and medium enterprises into consideration, financial inclusion is still an open issue, with 50-60% of MSMEs in emerging markets classed as unserved or underserved. Responsible Finance - defined by the IFC as the ‘dynamic process for scaling-up inclusive finance which complements risk management, balances financial with social returns and contributes to long term commercial sustainability essential to wider economic growth and job creation’ - needs to be improved, and the credit reporting industry has already played and will play an important role in filling the current gap, Lodi added.
Credit bureaus, especially private bureaus, have been successful in widening the pool of data in many countries, i.e. obtaining data from alternative and non-traditional sources such as retailers and utilities or data from microfinance institutions. As a result of these efforts, during the last 7 years the coverage of adults within private credit bureaus has increased both in developed and developing countries.
Despite the significant efforts made during the last decade, financial inclusion is still globally weak, Lodi argued, with half of all working-age adults unbanked, and 77% of the poor population. Also taking data on micro, small and medium enterprises into consideration, financial inclusion is still an open issue, with 50-60% of MSMEs in emerging markets classed as unserved or underserved. Responsible Finance - defined by the IFC as the ‘dynamic process for scaling-up inclusive finance which complements risk management, balances financial with social returns and contributes to long term commercial sustainability essential to wider economic growth and job creation’ - needs to be improved, and the credit reporting industry has already played and will play an important role in filling the current gap, Lodi added.
Credit bureaus, especially private bureaus, have been successful in widening the pool of data in many countries, i.e. obtaining data from alternative and non-traditional sources such as retailers and utilities or data from microfinance institutions. As a result of these efforts, during the last 7 years the coverage of adults within private credit bureaus has increased both in developed and developing countries.
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