Credit referencing outfit Experian is working with US financial services firms to develop a shared database of information on small business customers.
Due to be launched in November 2003, the reciprocol database will enable participants to access data on small businesses, including information about commercial credit cards, lines of credit and small business loans. To benefit from the programme, participants must also contribute data on their customers, such as payment and business ownership information.
Mark Zablan, president of Experian's business information solutions group, says the firm sought the guidance of a steering committee of representatives of financial firms to develop the shared database programme.
"Our goal is to give participants the tools they can use to make more informed credit decisions, control their total risk exposure and more easily assess the payment histories of their small-business customers. We urge financial institutions not yet involved to sign up now," says Zablan.
The database will allow participating firms to use current and archived data elements to develop risk models, as well as obtain commercial and public record information on small businesses in Experian's commercial database.
The shared database will be accessible via the Internet and CPU-to-CPU connectivity. Experian stresses that information provided by participating institutions will not be used to generate marketing lists.