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: