The non-banking register of client information (NRKI) is represented by a thoroughly protected infromation database of clients having instalment relationship with a particular leasing company or with a particular provider of consumer credit or instalment sales. “The non-banking instalment register is parallel to the bank credit register which operated for three years already with great success,” says Petr Kučera, Executive Director of CCB and Executive Head of CCB – Czech Credit Bureau, private limited company. As Kučera adds, “From the viewpoint of not only the system users but consumers as well, the NRKI essential value added is the complexity of the shared data. For the non-banking register does not include only negative data (e.g. delayed payments, unpaid obligations and so on) but also positive information concerning obligations’ payments which may, a.o., provide bonite clients with the benefit of faster and easier approach to monetary products.
The NRKI operates the special-interest association of legal entities, Leasing & Loan Credit Bureau (LLCB) whose founders are seven companies active in the Czech Republic in the areas of leasing and instalment purchase. These are the following: ČSOB [Czech Commercial Bank] Leasing, shareholding company; GE Money Auto, shareholding company; GE Money Multiservis, shareholding company; CAC LEASING, shareholding company; CCB Finance shareholding company; ŠkoFIN, Ltd.; Česká spořitelna [Czech Savings Bank] Leasing, shareholding company, and Autoleasing, shareholding company. The importance granted to the new register by the membership companies was, besides other, confirmed by the presence of their leading representatives at the today’s press conference. At present, the founding companies represent 85 % of the leasing market in the Czech Republic. The number of the association’s members will, however, change in time; there are already many other leasing as well as instalment companies interested to assign as its members.
“Launch of the NRKI will substantially influence both leasing and instalment markets, at the same time reducing the risks following from insolvency or fraudulent conduct of certain customers. At the same time, it shall become the hamper on the way to the vicious circle of paying off a credit by another credit, which begins to exhaust an increasing number of Czech citizens,” adds Petr Kučera.
The instalment register shall allow for a clear outline of a client’s obligations and thus also for better evaluation of his or hers capability to pay off the eventual further obligation, whether in the form of leasing, instalment purchase, or consumer credit. The positive credit history, on the contrary, shall allow the NRKI clients to be provided with financial products of much higher quality.
The prior advantage of NRKI as concerns participant companies is the lowered risk of unpayed leasings and consumer loans. The common aim of the participants of both banking and non-banking register is to allow for mutual exchange of information between the two registers. Both registers have been developing this project for several months in order to follow the full range of legal requirements, especially as concerns protection of private data. Foreign experience shows that monetary institutions operating in the countries possessing universal positive registers have roughly 0.5 % less default clients, at the same time allowing for almost 10 % additional acceptable contracts.
At the moment of the its launch, the register includes over 150.000 personal records whose classification into the NRKI has been conditioned by a client’s agreement in accordance with the Czech law on protection of personal data. These data can be used solely in accordance with a precisely set purpose of evaluating the bonity and payment moral of a particular client and are protected against any misuse. Each client can verify the information concerning his person through the LLCB client centre. One of the participants in the project – equally as in the bank register and along with the above-mentioned participating companies – is the CCB shareholder, the CRIF company based in Italy.
The CRIF company provides the project with the EURISC information system, at the same time participating at data processing. Similar register, already used by numerous financial institutions, is operated by the CRIF in Italy for more than 15 years.The main task of the Czech Credit Bureau in NRKI is especially to initiate and develop the overall project and to provide service. The database administrator, the register provider and the subject collecting questions of both leasing and instalment companies, distributing credit reports to them in return, is the LLCB association. Besides operating client center, the LLCB also ensures responsibilities of information character, defined by valid legislative guidelines.