Credit Data is any dataset that has direct application in the assessment of Credit Risk.
Types of Credit Data
- Consumer Credit Data which are typically also subdivided by lending product
- Corporate Credit Data which are typically not subdivided by product
Sovereign / sovereign debt analysis (Sovereign Risk) also involves substantial data requirements. Yet the relative paucity of credit events, the public availability of much government data (See Open Risk Data) and the complexity of these entities means that the related data form a category quite distinct from the other two.
- Identification Data: company name, business code, address of registered office, legal form, date of establishment
- Accounting and Financial Data: company accounting records
- Legal History: Any judicial track record of the company collected from court
- Qualitative data: E.g from review of management structures, interviews etc
Alternative Credit Data
Increased digitalization means that new sources of credit relevant information becomes available. This is usually denoted as Alternative Credit Data
Credit Data Formats
There are currently no public credit data formats or standards for the transmission of credit data. Generally, credit data are transmitted using ad-hoc formats primarily driven by regulatory requirements.
Credit Data Sources
- For application scoring, the client provides information in the various application forms
- Credit data collection is generally a commercial activity with a variety of providers in different countries
Issues and Challenges
- Data Privacy
- Data Quality
- Accessibility of data (formats, API's) may vary greatly