Comprehensive Credit Reporting is a fixture of the Australian credit reporting landscape and while not yet compulsory, its presence gives credit providers a significant opportunity to benefit from the data made available by CCR participants.
For many, the process of uploading data for CCR participation may appear complicated and time-consuming. The simple answer is to start from the beginning and follow illion's step by step guide.
To begin supplying data, credit providers are required to adhere to the Australian Credit Reporting Data Standards (ACRDS), an industry-designed and managed technical specification for the standardised loading and management of CCR data to the credit bureaus. All CCR participants (credit providers and credit bureaus) must meet these standards.
Data that is not supplied in the correct format will not meet the Principles of Reciprocity and Data Exchange (PRDE). This is a binding agreement that sets out the rules by which credit providers and credit reporting bodies can exchange credit reporting information, including CCR data.
- Sending data to the CRBs is a fairly simple process
- Accessing credit reporting information is often more challenging - for example, clarifying specific definitions such as open and closed data
- Corrections are a real challenge for most Credit Providers who are loading directly with the bureaus
- Customers must speak fluent XML if they are going to load directly with the bureau
- When going directly to bureau, the testing process takes much longer than anticipated
- Validation rules, error reports and testing processes differ with each bureau
The Multi-Bureau data approach
If you’re considering loading CCR data to more than one bureau, illion suggests doing it all at the same time.
- Time – Limit the schedule of technical and testing resources by testing concurrently
- Cost – Parallel testing cost is minimal compared to sequential testing
- Simplicity – Manage environments with multiple CRB’s at the same project stages, rather than trying to manage different stages with several bureaus
Better managing Data Standards interpretation:
- illion has observed subtle differences in the interpretation and application of Data Standards between bureaus
- It is more efficient to identify these upfront and manage your process design accordingly
- This allows for More consistent outcomes at the end of testing with respect to errors and data accept rates
Be production ready:
- Smoother transition to production, by identifying the optimal way to harmonise processes and reducing the rework that a sequential approach creates.
Foster technology engagement:
- CRBs have different connectivity protocols- and it will be more cost effective to have your technology infrastructure team deal with all of these at the same time to avoid priority conflicts at a later stage.
In a practical sense, implementing CCR for your mutual bank or alternative finance business will be a multi-team project that will span IT, legal and compliance, product, credit, lending and collections business units. Collating and supplying data from so many areas can be challenging but illion can help.
illion will prepare your data and provide it in the ARCDRS XML format. The data will be converted to the correct format and provided to CRBs according to the requirements set out in the PRDE.
Be aware that:
- If you don’t have access to a data conversion tool, you must provide the XML data to the CRB and receive and absorb an XML response
- Without a user interface, it is almost impossible for a business to work with the data and responses
Our CR Portal makes loading CCR data easy, and we work closely with you to ensure the process is as smooth as possible from beginning to end. We handle all data formats, extraction of data, delivery of data to all bureaus and follow-up testing, data washing, matching and quality assurance, and communications.
While we’re happy to help with a single aspect of the process, we can also take your business through the entire process from the beginning – both consume/supply CCR data – to end – monitoring, corrections, ongoing management and oversight – as a dedicated project.
With CCR here to stay and most of the larger lenders in the country already contributing their data there’s no better time to get an edge in the market than now.
Get your business CCR ready
Want to learn more about CCR and how illion can help you prepare? Contact us today.