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Experian Ramps Up SME Risk Assessment

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Experian hasn’t had an easy time as of late. The information services company was forced to sell off its consumer data operations, faced legal troubles and was hit with a security breach, all in the last year.

In the middle of all of this, Experian had taken to refocusing on its business data intelligence operations. In doing so, perhaps 2016 will fare better for the company.

On Wednesday (Jan. 27), Experian rolled out new updates to help small businesses access credit and help lenders mitigate risk. The firm debuted upgrades to the Small Business Credit Share (SBCS) solution to provide more thorough credit assessment and risk analysis for small business borrowers.

[bctt tweet=”Experian has rolled out a new solution to help small businesses access credit.”]

According to Experian, the upgrades provide a deeper look into the credit history of these companies, as well as their payment performance. The company noted that the enhancements yield benefits to both borrowers and lenders.

“Our SBCS platform is built to facilitate open and secure data sharing, with the ability to leverage both financial and non-financial data,” said Experian Business Information Services President Hiq Lee in a statement. “This inclusive type of system provides lenders and creditors with a more complete view of a business’ creditworthiness, enabling them to make smarter decisions, while helping small business owners gain access to the financial capital they need.”

Lee added that these capabilities can lead SMEs to more easily accessible bank and trade credit to expand their operations, purchase necessities like inventory and expand their staff.

The upgrades include new scoring models and new features in credit assessment reports, including anti-fraud protection and the creation of the SBCS financial acquisition score, which predicts “seriously derogatory payment on a financial trade within the next 24 months,” the company stated.

They also include views into performance trends, including 36-month financial trends and 36-month delinquency and payment trends for businesses.

Lee added that for both sides of the lending transaction, greater connections can be forged.

“Our SBCS program is designed to promote small business growth by facilitating a more meaningful dialogue between lenders and trade creditors and their customers,” he said. “The new enhancements enable better risk assessment, which can be used for more informed decisioning strategies, including extensions of credit, loan approvals or an advancement of services.”

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