The Credit Report is a detailed account of a customer’s borrowing with all current credit providers and their performance. The Credit Report lists all the credit accounts (both past and present) and the repayment history of each account.The Credit Report is used by ALL lenders to determine whether to approve credit facilities. As such it is important to check your credit report at least once every 6 months if you are not actively borrowing. You are advised to check your credit report every month if you are actively borrowing.
This is a mobile-based service that allows consumers to access bureau services through their mobile phones.customers are able to register with the bureau,populate their profiles and update their information, request for their credit reports or clearance certificates,subscribe for alerts,check their credit scores.
SME Business Solutions (SMEBS) is a membership programme from Metropol that enables Lenders and trade credit suppliers to increase the flow of credit to Micro, Small and Medium-size Enterprises (SMEs). It creates an exchange mechanism of information that allows the establishment of profitable relationships between credit providers and SME businesses.
Payment Performance Index
The PPI is a measure of how promptly customers meet their scheduled contractual financial obligations.
The PPI indicates the average number of late payments in days beyond terms measured as a percentage based on all the payment experiences reported to the bureau over the last 12 months.
The index ranges from M1 to M9 where M1 indicates negligible delays in payments while M9 indicates the customer delays on average over 3 times the agreed payment terms.
The PPI is a unique payment performance measure since it looks only at the customer’s payment habits, whether a consumer, SME or corporate. The PPI will help you anticipate your customers future behavior.
Consumer Credit Score
The Metro-Score is a measure of the consumer credit worthiness, the likelihood that they will meet their financial obligations. .The score is calculated using mathematical models developed from the behavior patterns of credit data provided to the credit bureau. The formula looks at such things as: outstanding balances, total avail-able credit, late payments, and the age of the credit account. Traceability factors are also considered to ensure improved chances of recoverability in the event of default. The more traits you share with people who have proven to be good credit risks, the higher your score. It uses payment performance, amount of debt and other characteristics to assess the credit worthiness of a borrower.
The Metro-Score ranges from 200 to 900, where a score of less than 400 indicates that the customer is in default. The score is used to assess a borrower’s credit worthiness.
As a lender, you can use the credit score to determine the risk premium to be assigned to customers. The Metro-Score is mapped to 6 risk buckets as shown in the diagram overleaf. The risk buckets help lenders to easily map the Metro-Score to their own risk classifications.
Business Credit Score
The FINSCORE is a measure of creditworthiness of a business, the likelihood that the business will meet its financial obligations. The score is calculated using mathematical models developed from the behavior patterns of credit data provided to the credit bureau. The formula looks at such things as:( Draw a pie chart again)
isk associated with business and maps on to the probability of default. It combines the customer’s payment performance, amount of debt and other characteristics to assess the credit worthiness of a business based on credit bureau information.
The FINSCORE ranges from 0 to 100, where a score of less than 40 indicates that the customer is in default. The score is used to assess a borrower’s creditworthiness.
As a lender, you can use the credit score to determine the risk premium to be assigned to customers. The FINSCORE is mapped to 6 risk buckets as shown in the diagram overleaf. The risk buckets help lenders to easily map the FIN SCORE to their own risk classifications.
Data Quality & Quantity Score
Data quality and quantity are key for any rating or scoring program. There are significant challenges in developing these tools in a low data environment. The Q-Score is an innovative tool developed by Metropol to help quantify the quality of data.
The Q-Score is a measure of the data available on the customer profile as submitted by various data providers.
The specific items it measures include:
1. Transparency: the extent to which there is sufficient information on the profie.
2. Quantity: the depth and breadth of data, and its homogeneity.
3. Quality: Ability to meet specific attributes e.g. relevance, accuracy, completeness, freshness and consistency.
CERTIFICATE OF CLEARANCE
Governmental and an increasing number of private sector employers are making it mandatory for prospective employees to present a Certificate of Clearance from one of the licensed credit reference bureaux (CRBs). Metropol provide a convenient network of offices and agents for individuals to obtain their CoC when required. The CoC may be used to Know Your Employee (KYE), Know Your Customer (KYC), Know Your Agent (KYA), or to clear the individual or company itself for business with other SMEs or corporate clients.
BUSINESS INFORMATION REPORTING
A well-established solution for businesses to assess the risk of doing business with a party by either buying an existing report, or commissioning a new report, on the prospective business partner. The BIR solution rates the target business using a market-proven methodology that incorporates qualitative and quantitative factors regarding the business and its owner managers.
The SME Rating is an independent assessment of the overall condition of an SME using both quantitative and qualitative data conducted by Metropol. The essence of the rating is to measure the financial strength of the SME and the probability of default on a financial obligation. The following guidelines provide a general overview of the qualitative and quantitative factors that Metropol considers when a analyzing an SME:
- Psychometric Evaluation of the owner manager
- Form of business organization
- Marketing strategy and market position
- Type of industry and the firm’s position in the industry.
- Business management
- Access to funding
- Payment performance
- Financial performance
GCR rates the full spectrum of security classes and accords both International Scale and National Scale ratings, and together with its international affiliates, rates almost 3000 organisations and debt issues – spanning 4 continents. Our rating and research activities can be sub -divided into the following key sectors:
1. Financial Institutions: banks and non – bank financial institutions
2. Insurance: short term insurance, assurance, reinsurance & healthcare
3. Corporate and Public Sector Debt: corporates & industrial borrowers; MFI ’s; parastatals, utilities & local authorities
4. Structured Finance . Metropol through GCR has done over 17 ratings in the banking sector and over 35 ratings in insurance and corporate sectors. Ratings are used mainly for fund raising purposes (e.g. for banks raising tier II capital). Nevertheless, ratings are also used for marketing purposes, e.g. insurance companies claims payment ability.
This service is provided to help credit providers in managing delinquent accounts and recovery of bad debts. The full range of services includes:
- Call Centre Collection
- Commercial Collection
- International Collection
- Debt Surveillance
- Tracing Services