This system is a universal interface for interaction with such systems as the First Credit Bureau and the International Credit Bureau. These systems keep credit history records about legal entities and individuals and provide banks and non-bank financial and credit institutions with a wide range of special systems for decision taking and risk management.
Credit bureaus provide information about potential borrowers and allow to make more precise predictions of collection rate. This allows lenders to determine direction and price of credit more effectively and reduce risk of adverse selection.
Credit bureaus allow to reduce payment for search of information charged from customers. This leads to stabilization of information field on the credit market and make lenders set competitive prices for credit resources. Lower interest rates increase net income of borrowers and stimulate their activity.
Credit bureaus form a certain disciplinary mechanism. Everybody knows that failure to perform payment obligations destroys reputation in the eyes of potential creditors and makes further credits impossible or very expensive. This mechanism also increases motivation for repayment of credit and reduces risk of misconduct.
Services of credit bureau are used by banks, insurance and leasing companies, credit unions, telecommunication companies and etc.
These systems also have additional functions. For example, monitoring system of the International Credit Bureau is based on notification of partner's officer on changes according to rules set by this partner for tracking of borrower data:
The system of the International Credit Bureau will detect changes that fall with these rules and automatically send a notification to indicated e-mail. This allows for prompt reaction, for example, in case of adverse change of financial position of your borrower.
Participants of the First Credit Bureau are 32 Ukrainian banks, 2 insurance companies, leasing companies, Association of Ukrainian banks and Icelandic company Creditinfo Group. Partners of the International Credit Bureau are 32 credit unions, 4 insurance companies, 22 banks, 3 financial companies and 3 leasing companies.
Detailed information about these systems may be found on the following sites: ICB (http://www.ibch.info/), ICB (http://www.pvbki.com/).
This system was successfully implemented in the following banks: "Industrial" OJSB (Zaporizhzhya), "Joint-Stock Bank "UkrGasBank" OJSC (Kiev), "TransBank" OJSB (Kiev), "PlusBank" OJSB.
