CreditVision Tool by TransUnion-CIBIL – Features, Benefits for Lenders
As non-performing assets and stressed assets grow bigger in size, the profitability of the financial institutions is getting affected. Currently banks take credit data from CIBIL and also use their own analytical insights run on their customer database to decide on any credit or loan application.
However with the launch of CreditVision tool from TransUnion-CIBIL; banks will now have more detailed information about an individual or any company’s financial transaction history.
The USP of the tool is to identify potential defaulters and potential new customers for loans and credit cards.
Read more about how to improve credit score.
This is how CreditVision tool from TU CIBIL will benefit lenders:
- Consumer’s granular level of financial transaction history will be available of the apart from the currently used credit score.
- Predict who is going to default in the near time.
- Predict which defaulter is currently paying which lender and how much, who is prepaying and at the same time not paying.
- Report on who is experiencing fall in their financials and whose account balance is improving.
- Categorize individuals as credit revolvers, transactors, and outstanding builders.
- Lend more: Identify borrowers, who can be given higher loan amount than the sanctioned amount.
How it will benefit borrowers or consumers:
Individuals with no credit score are many a times denied credit or loan. Because banks did not have any credit data to evaluate credit worthiness. However with Credit Vision, deserving non-customers will be offered automated loans without compromising the risk.
Features of CreditVision Tool:
- Developed by TransUnion
- It is an algorithmic software which studies customer pattern in payment, exposure and spend behaviour.
- The software analyses last 3 years data.
So basically there will be improvement in making lending decisions, credit penetration will increase and access to credit will be improved.
Brief About TransUnion CIBIL:
- TransUnion CIBIL is the India’s most renowned credit information company. They maintain credit history/records of over 500 million consumers and business entities.
- India’s leading public and private sector banks, NBFCs, financial institutions and HFCs are members of TU CIBIL.
- TU CIBIL collects, analyzes and delivers information about the credit history of the borrowers (individuals, small, medium and big enterprises). And provide this information to its members. This information is then used by the members to make credit decisions about individuals and businesses.