More and more banks in Russia prefer to use the database of credit histories maintained and provided by the Joint Credit Bureau. Russia’s largest private bank Alfa-Bank has transferred to the bureau more than 12 million credit histories of individuals who received a bank loan starting in 2006 and who agreed to have their information released to the credit agency.

In return for its information, Alfa-Bank will gain access to the volume of stored information that the credit bureau has for other citizens. As a result, Alfa-Bank will now be able to verify more quickly and efficiently the financial trustworthiness and integrity of existing and future customers. The hit-rate for requests sent to the Joint Credit Bureau is on average 88 percent, the press service of Alfa-Bank reported.

To get detailed information about the credit history of potential borrowers, one of the key components is a well-established system of risk management. Alfa-Bank’s selection of the Joint Credit Bureau as a partner was based on several factors, including the bureau’s merger of credit histories databases of major Russian banks, innovative services, and a desire to diversify the bank’s sources of information.

“It is important that the database contain relevant and constantly updated information and that the bureau always monitor the quality of the information it inputs. The data is available seven days a week, and the answer is received within two seconds with all the necessary security requirements,” said deputy head of Alfa-Bank for retail risk Anton Vinokurov.

It is worth noting that the credit bureau really pays attention not only to the number of credit histories in the database, but also to the quality of their treatment. In 2012, the bureau put into operation three new services, including a service for the notification of changes in credit ratings, a unique service for creating a unified portrait of the borrower, and a combined credit scoring service for ID verification. Also, the bureau launched an optimized service for tracking fraudulent activities called the National Hunter.

“By working with the Joint Credit Bureau, we have a more accurate segmentation of our borrowers in terms of risk. We can expand our customer base and offer to low-risk clients certain more favorable terms. At the same time, we will know when we should more carefully consider high-risk customers. Such a policy has a positive impact on the loyalties of customers with good credit histories and optimizes the bank’s interaction with unreliable clients,” continued Anton Vinokurov.

“Connecting Alfa Bank, one of the leaders of retail lending in Russia to the Joint Credit Bureau is an important step for us,” said the bureau’s general director Daniel Zelenski. “We are finalizing the formation of our pool of partner banks, mostly chosen from the top 30 banks in Russia. We are also entering a phase of expanding the spectrum and quality of services provided by financial institutions.”

Over 2012, the database of the Joint Credit Bureau increased by 60 percent. The Joint Credit Bureau works with largest banks in Russia and provides services developed following the best practices of the U.S. company Experian, the world leader in information and analytical services. These factors will enable the Joint Credit Bureau to hold firmly the leading position in the credit history market and exert a positive influence on the development of retail lending in Russia.