Banks to boost bad debt detection
Financial institutions will be on their guard against bad debt and identity fraud in the New Year according to Graham Lund, deputy managing director at Callcredit.
Lund has predicted a shift in the credit industry towards a better and timelier use of data in 2008. He said: “As the credit squeeze continues into the new year, financial institutions are recognising the need to be extra vigilant for early warning signs of bad debt and identity fraud on their consumers’ accounts.”
According to Lund, many banks and building societies have recently found that daily updates to consumers’ profiles allow them to detect early warning signs in around 20% more cases than if they had used a monthly update service, showing that data will need to be deployed more quickly and efficiently if financial institutions are to lend responsibly.
Callcredit is a consumer credit reference agency and is used by banks and building societies, who can obtain up to date and relevant information on consumers’ finances and credit history.