Expert estimationAbout features of the Russian credit market “ to Money “ the director for external relations of international group Experian, the global supplier of information decisions, and Daniel Zelensky, the head of representation Experian Decision Analytics to Russia and the CIS have told Peter Bruker, .
you would note what features of the Russian market first of all?
Peter Bruker: In many emerging markets — the markets where credit services only develop, we rank as them even Japan — there is a huge interest of banks to services of credit bureaus and demand for technologies of analytical support of decisions. In Russia, Bulgaria, Romania, Estonia at us already is credit bureaus. We also sell the software for management of bureau of credit stories.
Distinctive feature of Russia is that when the legislation and banks has exchanged have been compelled to start to co-operate with the credit bureaus, many banks have created own credit bureaus. The information is stored in such bureau only one bank, and information interchange practice between bureau is not present. So at the Russian banks huge possibilities for more active information interchange.
now credit bureau Experian - Interfax works with 190 clients (banks and other organisations) and practises information interchange. And clients receive benefit of that can use experience of other banks - clients of credit bureau. For example, in the USA or Great Britain where there is an information interchange practice, we offer the market products which allow banks to operate their portfolios more effectively. One of examples — system under name Triggers. She allows to notify bank that the client supposes delay under the credits in other bank. It occurs at an early stage, and the bank receives the prevention that potential problems are possible that stimulates more to show consideration for this client.
but while the Russian banks not so want that colleagues saw their data. Meanwhile in Bulgaria and Romania big banks actively co-operate with credit bureaus, small banks too are tightened. In this sense these countries of Eastern Europe overtake Russia a little. Whether
it is possible as - that to stimulate this process by a legislative way?
the Item B.: it seems To me that such practice should be entered by demonstration of advantages of an information exchange. Legislative compulsion is not so effective. We would like, that banks understood advantages of granting in credit bureau of the full information on a regular basis.
Now we will talk about yours skoringovyh products. How you differentiate them?
the Item B.: the Basic our product — Strategy Manager. It is used 20 - 25 banks and their regional networks on a global scale and allows banks to operate a number of aspects of that we name life cycle of the client. The product is used at the earliest stages, that is at demands acceptance from the client, for definition of some parametres of the credit — its size, the interest rate and a limit. Further this product is used for management of relations with the client throughout work with bank to accumulate the information on what operations with this client were, to accumulate about it the information as by results of work of the bank with the client, and receiving the information from credit bureau.
for gathering of debts at us exists other two products — It CollectSM, developed specially for the Russian market, and Tallyman which we have got recently. The first of them is used and in countries of Eastern Europe.
as characteristics offered Experian products depend on their price?
Daniel Zelensky: the Platform is always used one, but the stuffing will be different. It is clear that the bank with an extensive filial network, with difficult structure will have one stuffing in a product, and small bank specialising on one service — another. That is the configuration will change, the quantity applied skoringovyh cards, quantity of credit strategy, quantity of points in business - process in which the questionnaire will stop will change.
therefore the average size to banks or the banks which do not have experience in management by risks, we usually offer already configured system which then together we finish and we increase. And with big bank, which has the vision how to organise this business - process, we in common build business - process, credit strategy, we develop skoringovuju a card, making a start from our base configuration.
whom Experian considers as the competitors?
the Item B.: In the global market it Fair Isaac. But it is necessary to notice that 80 our % skoringovyh systems are applied outside of the North America while 80 % of products Fair Isaac are applied within the North America.
it is possible to tell that at global level our competitors are our clients. Many of our clients have analysts who, in turn, address to us for consulting services. Often they connect our systems to their infrastructure as cannot or do not feel in itself forces to make it better, than we.
and in Russia?
D. Z: Perhaps, in Russia the same. After all we operate in very special area — retail credit risks. On the same scales, as we, operates Fair Isaac.
I also will remind that our offer consists of three components, or cubes: analytics, the software and consulting. If we take a cube “ the software “ many software companies offer here the decisions. If we take a cube “ consulting services “ we will see that in the market of Russia the Russian and international consulting companies offering the services are presented many. If we take a cube “ analytics “ we will see that in Russia it is a lot of mathematicians, there is a good school. But all three cubes are not offered by any Russian company. Therefore if to compare on three cubes together except us such complex decision offers only Fair Isaac.
But at us advantage: We consider that we now leaders in the market.
proceeding from what?
D. Z: Proceeding from quantity of the organisations with which we work, scales of these organisations, proceeding from volume of our business estimated in money, quantity of people which are presented here in the market, investments which we have made in this market. Whether
you how use of this or that skoringovoj models is reflected in a portfolio of the delayed credits of bank - the client watch?
the Item B.: Efficiency of various systems skoringa depends on volume of the information which they process. In the countries where credit bureaus work, possibilities for reduction of level of the delayed debts are much wider. If is both negative, and the positive data, these possibilities is even wider. It also depends on what products throughout life cycle are used. If the bank constantly watches a portfolio condition, regularly spends skoringovuju an estimation he is in a greater degree capable to operate level of the delayed debts. If the bank uses the software for gathering of quality debts it has more than possibilities on transformation of bad clients into the good. It still pressing question for many organisations not only in Russia, but also to Great Britain and the USA — there too still use credit departments for debts gathering. It is very improper tool.
D. Z: analysts have a proverb: “ a skoringovaja card the data " is so good, how much good;. If you do a sandwich with a rotten ham, it will be tasteless. The same here again.
what perspective problems now face your Russian divisions?
the Item B.: Our long-term objective — to have the largest credit bureau in Russia. In Great Britain, for example, 99 % of credit institutions give the data in bureau of credit stories. Our purpose for Russia or any other market — to achieve the same. Let there will be two or three bureaus, but all banks should give them the data.
one more long-term objective — to see wider application of our products on swindle prevention. In Russia product Hunter (" already is offered; the Hunter “) . It represents a database of questionnaires which or caused suspicion in roguish activity, or were roguish, and also the information which people gave about themselves at giving of credit demands. Hunter, integrated into business - process after skoringovoj system, compares arriving questionnaires to this database. And if there is a criminal group which gives the same number of a cellular telephone or the address, or any data about the company where borrowers the bank by means of this product has chance to open swindle at the earliest stage ostensibly work.
here so our long-term objectives in Russia look.
and what at them time horizon?
the Item B.: I do not think that any term in which we want to reach these purposes should be established. All markets very different. In any country the separate problem will be faster solved, in any — more slowly. At the same time our complex purposes for other East Europe states are very similar.