Creditinfo generates first set of credit reports
Published:Sunday | July 7, 2013 | 12:00 AM
Creditinfo Jamaica Limited, which started issuing credit reports last week, said that each of its 32 credit information providers (CIPs) has separately negotiated the terms under which they wish to access reports.
Each company is also committed to provide information to the bureau themselves, CEO Megan Deane said on Friday.
She is also projecting that demand for reports will grow exponentially as local companies realise the impact of the reports on risk management.
One of two licensed credit bureaus, Creditinfo Jamaica — a joint venture between Creditinfo Group headquartered in Iceland and local company Coalesce Credit Solutions Limited — "went live" and generated the first set of credit reports in the last week to COK Sodality Cooperative Credit Union, NCB Employee's Cooperative Credit Union and Singer Jamaica Limited.
For such companies, Deane notes, "Creditinfo Jamaica operates closed user groups for access to local credit information. Closed user groups means you can't get information from the credit bureau unless you have provided information," she said.
OUTSIDE OF THE CLOSED GROUPS
Outside of the closed groups, the only people who can pull reports "are the subject of a report itself, or if a court of law or Bank of Jamaica gives a directive," Deane said.
"In order to pull credit reports, you must provide credit information to our credit bureau system. Each of our signed credit information providers has negotiated the terms under which they wish to access reports," Deane said in response to Sunday Business queries on fee charges to companies using its services.
Creditinfo also offers international business credit reports available to any company or individual. These, she said, are not restricted to a closed user group, but are "available on a per report-per pull basis," she added.
Meantime, Creditinfo is currently working with each of the 32 CIPs signed up to June on matters of data transfer and training.
As to expectations of how the business will perform in a market unused to the tracking of credit history, Deane was bullish.
"We anticipate, as with most start-up businesses, that growth will be exponential; bearing in mind we would be starting from zero," she said.
"As the signed CIPs become more and more comfortable with using credit reports and seeing the depth and breadth of information that is provided to assist their decision making and risk management, increasing demand will be given. There will also be opportunity for them to use the reports and scores for monitoring purposes so we definitely anticipate an upward trajectory."
The Creditinfo CEO's confidence is boosted by central bank data which shows a growing loan market valued at J$427 billion, of which commercial banks account for J$322 billion.
"So it's a significant number of loans that would take up the level of credit extended. There is a lot of opportunity out there," Deane said.