Comprehensive Reporting - Benefits

What may be the benefits of moving to CCR?

The following benefits have been demonstrated in studies in countries where there has been a transition to CCR:

Lenders

• Increased strength and predictability of risk models I.e. more robust and considered credit decisions
• Increased application approval rates I.e. increased number of approved applications
• Decreased default rates I.e. reduction in the number of customers who can't meet financial commitments
• Improved customer experience I.e. more user friendly and potentially quicker application process
• Improved affordability analysis - lenders can better assess the level of debt payments required
• Supports more prudent responsible lending and better management of customer lending lifecycle

Consumers

• Improved customer experience I.e. more user friendly and potentially quicker application process
• Ability to demonstrate credit rehabilitation or good repayment history (following an adverse credit event)
• Possible decrease in the cost of borrowing money by demonstrating strong credit history
• And in some studies and markets, there has been increased access to quality credit for the disadvantaged including different ethnic minorities and women. Objective scoring based upon repayment history can counterbalance subjective assessments and limited information.