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Credit Information Analytics- Evolution and Benefits
12 April 2013
Arun ThukralManaging Director
© 201 3 ALL RIGHTS RESERVED | PRIVATE 2
Evolution of India’s first credit bureauC
IBIL
is E
stab
lish
edC
IBIL
is E
stab
lish
ed
CIB
IL is th
e leadin
g C
IC in
Ind
iaC
IBIL
is the lead
ing
CIC
in In
dia
2004 2005 20092007
First and only credit bureau
First and only credit bureau
• 4 million consumer records
Commercial Database
Commercial Database
• 0.6 million commercial records
• Consumer Portfolio review reports
Advanced Analytical tools
Advanced Analytical tools
• CIBIL TransUnion Score
• Personal Loan Score
• Bureau Credit Characteristics
• CIBIL Custom Solutions
Accelerates solution offerings
Accelerates solution offerings
• First central repository on Fraud and Mortgage
• Direct Consumer Access
• CIBIL Detect
• CIBIL Mortgage Check
CIBIL provides world class solutions and has become the risk management partner for all lending institutions in India
2012
© 201 3 ALL RIGHTS RESERVED | PRIVATE 3
Expanding CIBIL Membership
CIBIL strengthened its membership to 903 membersIncluding 373 NBFCs, 307 Cooperative Banks & 40 Rural Banks
150 160 172180 205
282
500
670
766
840
903
© 201 3 ALL RIGHTS RESERVED | PRIVATE 4
Consumer Database Snapshot
Vast database consisting of nearly 261 million records
© 201 3 ALL RIGHTS RESERVED | PRIVATE 5
Commercial Database Snapshot
Strong database consisting over 12.5 million records
© 201 3 ALL RIGHTS RESERVED | PRIVATE 6
Bureau usage Credit decisioning
Bank
Electronic format
PDF format
Enquiry – Web / Bulk
Output
Credit Managers
CIBIL
Individual Entity Check
Business Entity Check
Fraud Check
Property Check
SME Customer
Loan Application
Short-Term Mid-Term Long-Term
© 201 3 ALL RIGHTS RESERVED | PRIVATE 77
• Credit Information Reports• Bureau Scores
• Fraud Prevention tools• Bureau Characteristics
• Custom Behavior Scores• Segmentation Analysis
• Benchmarking• Decision Trees• Stress Testing
• Contact information• Bureau Characteristics• Segmentation Analysis • Optimization Strategies
CIBIL provides tools to enable smarter, more strategic decisions at every stage of the credit lifecycle
• Verification?• Accept / reject?• Tier pricing?
• Initial credit line?
• Credit line?• Authorize?• Pricing?
• Customer service levels?• Market intelligence?
• Collection Prioritization?• Effective contact?
• Treatment Strategies?• Outsourcing?
• Resource Allocation?KE
Y I
SS
UE
SC
IBIL
TU
TO
OL
S
Collections / RecoveryPortfolio ManagementAccount Acquisition
Credit-bureau based tools – generic scores, characteristics,. – are indispensible for effective decision management in consumer credit
Credit-bureau based tools – generic scores, characteristics,. – are indispensible for effective decision management in consumer credit
CIBIL Mortgage Check
© 201 3 ALL RIGHTS RESERVED | PRIVATE 9
CIBIL Mortgage Check
• Submission of mortgage loan accounts with property information
• Access based on “Principle of Reciprocity”
• Search Parameters: Property Address
• Supports csv input and output reports. Available online (web) and through bulk modes
• Output response: Mortgage Information Report to give all account & mortgage details related to the Property
Data validation
and loading
Transfer data files
Potential “HITS”Rank ordered
• ______• ______• ______
Electronic format
PDF format
Search property address
Institutions
Output reports
9 million records
© 201 3 ALL RIGHTS RESERVED | PRIVATE 10
CIBIL Mortgage Report Features the following information:
Property information
Address
Property Area (Sq ft)
Survey number
Type of Security (Prime/ Collateral)
Summary of present & past
mortgages
Member Name Account number
Account Open date Account Close date Reporting date
Charge/ Mortgage creation date Charge/ Mortgage release date
Loan Value Market Valuation Agreement Value
Mortgage details
Charge Type of product
Encumbrances Documents submitted Place of mortgage
Borrower information
on each mortgage
Name
Date of birth Gender
Telephone(s) Address
Identification number(s) – PAN, Passport no., Voter ID, Driving License No
Enquiry log Enquiring Member Applicant nameDate Enquiry purpose
Credit Activity Trends
© 201 3 ALL RIGHTS RESERVED | PRIVATE 12
Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
THE GROWTH IN CREDITIs it different this time around?
NEW ACCOUNTS BOOKED BY QUARTER2006 to 2012
2006 2008 2010 2012
GROWTH IN UNSECURED LENDING
UNSECURED LOAN DRIVEN GROWTH
SECURED LOAN DOMINATE WITH TIGHT CREDIT CONTROLS
© 201 3 ALL RIGHTS RESERVED | PRIVATE 13
Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
THE GROWTH IN CREDITHas it resulted in higher credit penetration?
SHARE OF NEW TO CREDIT BORROWERS2006 to 2012
2006 2008 2010 2012
© 201 3 ALL RIGHTS RESERVED | PRIVATE 14
Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
presence of one trade only
THE GROWTH IN CREDITWhat loans are credit active customer taking?
SHARE OF CREDIT ACTIVE BORROWERS2006 to 2012
2006 2008 2010 2012
© 201 3 ALL RIGHTS RESERVED | PRIVATE 15
Credit Activity(Rev) Significant shift towards secured products over time
© 201 3 ALL RIGHTS RESERVED | PRIVATE 16
CIBIL TransUnion Score Trend for Home Loans
Score Trend of New Loan Accounts Opened
Based on the current lender usage pattern aCIBIL TransUnion Score of 700 or more can be considered a
“good” Score
Score Band 2008 2012
<550 6.1% 2.5%
650-699 4.0% 3.3%
700-749 9.5% 7.0%
750-799 57.2% 24.8%
>=800 23.3% 62.3%
© 201 3 ALL RIGHTS RESERVED | PRIVATE 17
CIBIL Advantage- Members
• Faster processing of applications for loans, thereby leading to time and cost savings for each credit evaluation
• Better credit pricing depending on borrower performance, to adjust interest rate to compensate for escalating risk
• Credit grantors are now much better positioned to implement effective portfolio management strategies
The Bottom line:
Increased profitability, through cost savings as well as improved loan portfolios
© 201 3 ALL RIGHTS RESERVED | PRIVATE 18
CIBIL Advantage- Consumers• Expedites the credit approval process
• Reduces subjectivity in the credit assessment process
• Encourages consumers to maintain greater self discipline in acquiring financial commitments
• Allows consumers to build reputational collateral by following correct repayment behavior
• Provides the consumer with an opportunity to improve their standard of living through easier access to credit
© 201 3 ALL RIGHTS RESERVED | PRIVATE 19
Thank You