The Brazilian credit information market is in for a shakeup with the FEBRABAN, the Brazilian banking industry’s main federation, and Brazil’s top five banks selecting Lexis Nexis Risk Solutions to provide technical services for a new credit intelligence bureau intented to modernize the current Brazilian credit risk information ecosystem.
Recently FEBRABAN and LexisNexis Risk Solutions signed a memorandum of understanding that covers an initial phase to detail the project and will guide exclusive negotiation of definitive documents for the establishment of the credit intelligence bureau. FEBRABAN, Bradesco, Banco do Brasil, Caixa Econômica Federal, Itaú Unibanco and Santander selected LexisNexis Risk Solutions because of its technology, data and analytics prowess as well as its deep experience in the financial services industry.
According to FEBRABAN, this new effort may in the long term provide many more Brazilians a chance to participate in the financial system. Creating a risk information ecosystem on high-speed technology using robust sets of data has the potential to change lives, generate sustainable economic expansion in a world-class economy, all the while providing financial institutions with the tools to assess and manage risk more effectively.
“After a thorough RFP process, LexisNexis Risk Solutions became the choice to partner with us in this endeavor,” said Murilo Portugal, FEBRABAN president. “Its high patterns of security and privacy, deep expertise in the risk information industry and technology development capabilities made LexisNexis Risk Solutions stand out from the competition. This credit intelligence bureau will have a positive impact in our credit markets by providing an infrastructure to improve access to credit in the medium term.”
The unique expertise of LexisNexis Risk Solutions combined with its open-source data processing platform, HPCC Systems®, were two of the factors that led the banks to select the company. The HPCC Systems platform will make it possible for the credit intelligence bureau to process and analyze complex, massive data sets in a matter of seconds. The ability to process quickly large volumes of transaction data through HPCC Systems will help the credit intelligence bureau to effectively manage financial payment experiences, resulting in a bureau with a sophisticated infrastructure. RELX Group, parent company of LexisNexis Risk Solutions, uses the platform across its four businesses.
LexisNexis Risk Solutions is known for architecting risk information ecosystems. For example, U.S.-based Small Business Financial Exchange (SBFE®), a consortium of nearly 200 lenders, selected LexisNexis Risk Solutions more than two years ago to help to implement the next-generation design of its industry-managed and -governed small business payment data exchange. In a completely separate transaction, LexisNexis Risk Solutions also met SBFE’s best-in-industry security and data governance standards to be approved to provide solutions built on SBFE data to SBFE members as an SBFE Certified Vendor.
About LexisNexis Risk: LexisNexis Risk Solutions is a leading provider of solutions that combine proprietary, public and third-party information, with advanced technology and analytics. These solutions assist customers in evaluating, predicting and managing risk and improving operational effectiveness, predominantly in the US.
LexisNexis Risk Solutions is organised around market facing industry/sector groups: insurance, business services (including the financial services, receivables management and corporate groups), and government.
Insurance Solutions provides a comprehensive combination of data and analytics to property and casualty (P&C) personal and commercial insurance and life insurance carriers in the US to improve critical aspects of their business, from customer acquisition and underwriting to claims handling.
Business Services provides financial institutions with risk management, identity management, fraud detection, credit risk management, and compliance solutions. These include “know your customer” and anti-money laundering products. The business also provides risk and identity management solutions for corporate customers in retail, telecommunications and utilities sectors. Receivables management solutions help debt recovery professionals in the segmentation, management and collection of consumer and business debt.
Government Solutions provides data and analytics to US federal, state and local law enforcement and government agencies to help solve criminal and intelligence cases and to identify fraud, waste and abuse in government programmes.
Source: LexisNexis Press Release