UK Lenders to Benefit as Commercial Credit Data Sharing Goes Live

Experian, an information services company, has launched the Commercial CAIS data sharing scheme, which allows major creditors engaged in commercial lending activities to share details of credit commitments undertaken by both limited and non-limited businesses, as well as how they are performing on them.

Financial institutions and other creditors that are part of the scheme can now draw on more insight that will enable them to better manage the risks associated with commercial lending. They will also be able to ensure that customers are treated fairly and appropriately, according to their individual circumstances.

Phil Cotter, managing director of Experian Credit Services in the UK and Ireland, said: “This is a significant step forward for commercial lending in the UK. Lenders are now able to access a greater range of data to inform their commercial lending decisions. Lenders can now obtain a far more comprehensive view of businesses and how they are performing on their credit commitments, enabling them to set terms and offer services that are fairer to the applicant and their credit needs.”

He added: “This development is particularly valuable when making lending decisions on small and medium sized firms. Many organisations of this size have struggled to gain access to services due to a lack of data available on them, and this will help ensure that they are able to access a wider range of financial products. While only CAIS members will be able to view the credit commitments of these businesses, their existence will be highlighted in other databases. This benefits businesses that are not CAIS members and also opens up services to newly found non-limited businesses.”

Four facts about Commercial CAIS:

1. Commercial CAIS is a data sharing scheme where members can share information concerning businesses’ credit commitments and how they are performing on them. Information shared includes the length of each credit agreement, the start date of the agreement, the amount of credit outstanding on a facility and how each business has performed with regards to meeting payments.
2. The sharing of this data is governed by a strict code of conduct, overseen by a cross industry group called Steering Committee on Reciprocity (SCOR). Only members of the scheme can submit and access this data, and then only with the permission of the business concerned. The information can also be used to confirm to non-members of the scheme that individual businesses exist, however non-members cannot access the shared information.
3. There are currently around 150 Commercial CAIS members, predominantly major banks, building societies, telecommunications firms, utilities and asset finance providers.
4. Commercial CAIS is a particularly valuable source of information on smaller and non-limited businesses, enabling lenders to see a more complete picture of an applicant’s financial position, enabling more appropriate lending decisions to be made quickly.

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