Experian, among other multinationals, will set up a `credit bureau? to assist banks in defining credit ratings of individual customers before they part with funds.
The UK-headquartered company with a turnover of $3.7 billion, is awaiting the necessary approvals from the Reserve Bank of India (RBI). So far, the country has just one such agency, Cibil? or Credit Information Bureau (India) Ltd.
Experian?s credit bureau will rate individuals based on their previous bank loan repayment records, defaults, and other parameters like bill payments towards utilities like telephone, etc. Talking to FE, Richard Fiddis, managing director, strategic markets of Experian, said: ?In most markets of the world, there are 2-3 credit bureaus. The Indian government too wants similar numbers here so as to have an effective credit information-sharing system and at the same time develop a competitive environment in the field?.
With the RBI and the government coming down heavily on a few banks adopting aggressive telemarketing methods to sell loans, the establishments of credit bureaus is seen as an effective route to share data of individual borrowers and their requirements with banks.
Richard claimed that Experian, which runs credit bureaus in 22 countries as of now, is the largest player on the space. He said 43% of its entire revenue comes from outside North America.
Various parameters will be taken in view before rating a customer. The bureau will also set limits based on the past rack record of individual borrowers.
Apart from financial services, Experian has also a range of services for other sectors.