There are a number of ways that lenders can lessen the potential uncertainty of performance of various CCR characteristics when applied to their portfolios.
One of the challenges facing many organisations that wish to transition from a negative reporting environment to Comprehensive Credit Reporting (CCR) is how to introduce the new information without increasing the uncertainty of estimating future defaults and losses.
Evidence from the New Zealand CCR landscape shows that lenders not participating have suffered from increased adverse selection over the last twelve months.
Negative data alone does not always provide the complete picture of an individual's creditworthiness. Utilising bureau data can help lenders better manage risk and improve customer experience.
