Enhancing the depth and quality of credit reporting information for millions of credit active consumers in Hong Kong will help Hong Kong financial institutions and businesses in determining credit risk. The use of credit characteristics is the next analytical step for financial institutions to further maximize the benefits of both positive and negative credit information for effective portfolio management.   Credit characteristics are an advanced set of aggregated variables representing Hong Kong’s credit report data.  This data involves demographics, public records, enquiries and payment performance. This standardized procedure helps with faster analysis and modeling, provides a better understanding of customer payment behavior and saves businesses time and resources on IT development. “The launch of credit characteristics is a major milestone in the Hong Kong market. This represents the foundation on which to build more advanced analytics and decisioning capabilities for businesses to leverage,” said TransUnion’s Mike Kiyosaki, executive vice president of Analytic and Decision Services. “Greater understanding among the credit reporting community of consumer profiles will enable Hong Kong to maintain its status as a financial leader and help financial institutions better gauge financial risks.”

Credit characteristics enable TransUnion to develop specific risk scorecards for a customer segment, product or industry, which can be combined to define and implement business rules and policies throughout the customer lifecycle. Available in batch or online delivery, these characteristics can be customized based on a customer’s specific portfolio make-up. With the addition of these credit variables to TransUnion’s generic scoring model or a proprietary scoring model, businesses can identify key segments and trends in their portfolios, helping them to minimize risk and maximize returns.  Source: TransUnion   www.transunion.com/business

BIIA Newsletter October – 2007 Issue