2015 has seen a dramatic build in momentum in relation to Comprehensive Reporting. Since November 2013, when the first dataloads of Comprehensive Reporting data landed on the bureau in New Zealand, there is been exponential growth in terms of the quantity of Comprehensive Reporting data now held on the bureau.
With eight providers across a range of industries (Telecommunications, Utilities, Finance Companies, Banks) loading data in New Zealand, the likelihood of hitting a file with Comprehensive data has increased to over 50% in 2015. In addition to the high hit rate, it is exciting to find that nearly half of those with comprehensive reporting data have more than one account recorded.
This depth of data is paving the way for some clear 'early adopter' advantages for those Credit Providers who have started contributing their data. The next challenge for many credit providers is to ensure that their systems and processes catch up, enabling them to start consuming Comprehensive Reporting data and seeing the real benefits. It is expected that there will be significant value in the acceptance of customers who were considered high risk in the traditional negative reporting environment, but are now potential accepts in a Comprehensive Reporting environment. They can be easily identified using the DI Consumer Risk Score (CRS) which will highlight low risk customers by combining all data held on an individual's credit file to provide a highly predictive risk indicator.
As comprehensive reporting data builds up on the database, the CRS will change dynamically and become an even better predictor of risk. There will also clearly be customers who are now considered high risk, but do not have the traditional high risk predictors present on their files. With a similar pattern emerging in Australia, we can expect to see significant volume build up over 2015.
There are positive indicators in the market showing that the Banking industry will be contributing data to the mix within the next six months.