Transcript Rental Exchange Presentation

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The Rental Exchange
Tackling financial, digital and social exclusion
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What is a Credit Report?
 Your credit report is a key element of your
financial CV. It details credit you have taken out
such as credit cards, loans and mortgages, along
with your repayment history, any court judgments
or bankruptcies against you - and more.
 Information on the following items is shown in
your credit report:
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Profile Details
Credit Accounts
Electoral Roll
Aliases
Financial Associates
Public Records
Previous searches of your report
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What is a Credit Score?
 Before deciding whether or not to offer
you credit, many organisations take
your credit report, plus the details you
give the lender on your application
form to generate a credit score. This is
a single figure that indicates how likely
you are to repay what you owe.
 The score helps organisations decide
whether to make you a credit offer and
what terms to set.
 Usually, the higher your score, the
easier you will find it to borrow and get
a good deal.
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The Rental Exchange
Tackling financial, digital and social exclusion
 Millions of social housing tenants in the UK face financial,
digital and social exclusion
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Excluded from affordable credit
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More likely to be declined
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Pay a higher price for credit and other basic goods and services
 The Rental Exchange will help tenants with the challenges
they face in every day life
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Attaining affordable credit when they need it
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Better tariffs for utilities, insurance and mobile phone contracts
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Proving their identity
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The Rental Exchange
The Journey so far…
Proof of concept study by Big Issue Invest and
Experian in 2010 with financial support of Friends
Provident Foundation, Joseph Rowntree Foundation,
Esmée Fairbairn Foundation, and engagement of social
housing and banking sectors.
Credit decisions improved for 30% of social
tenants - around 1.5 million people.
40% of those who would not pass an Identity
Check today would pass if rental data were
shared.
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The Rental Exchange
The Journey so far…
Tenant focus groups identified that the majority of
people were in favour of data sharing.
“You’re in a vicious circle,
aren’t you? Paying all these
high interest rates, you’re
never going to get yourself
straight until you get a
reasonable loan.”
“I was on good money and I asked my bank for a
£1000 loan and they
turned me down flat. The
bank just told me that I
didn’t have a credit
rating.”
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“That would help you get a
loan at the bank if you are
able to prove that you do
pay your rent monthly and
that could boost your
credibility. More like other
people. I like that.”
“I think that would be
good. Good for my future.
It definitely makes sense.
It gives you the building
blocks to get on the ladder
if you want to (borrow)
money.”
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The Rental Exchange
The Journey so far…
Experian won the tender to take the proof of concept to
live implementation.
The Rental Exchange was officially launched at the CIH
Conference in June and we are actively working with
over 170 Housing Providers across the UK collecting upto-date rental payment information.
We are looking for more housing providers to share their
rental payment data. Rental Exchange is your chance
to help tenants build a positive credit history.
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How does the Rental Exchange work?
Social housing providers will provide a regular feed
of actual payment data about tenants’ rent payment
performance - there is no cost involved.
The data will be accessed when the tenant applies
for goods or services where a credit or identity
check is made through an organisation using
Experian’s database.
Experian processes significantly more transactions
of this kind in the UK than any other organisation,
giving tenants the best chance of their data being
available to support their application.
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What are the benefits?
FOR TENANTS
Good rental payment history
will enhance an individuals
credit score increasing access
to more affordable mainstream
services.
Enhance Credit
Score
FOR HOUSING PROVIDERS
Help tenants to access affordable
credit and other services.
Supports
financial inclusion
The Rental Exchange will act as
an incentive to pay rent in full and
on time.
Creates ‘online’ proof of identity important when applying for
goods and services.
Online proof of
identity
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Improve
collections
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Joining the Rental Exchange
Phase 1- Proof of Concept
Experian will perform an analysis of your data, to include:
 Identification - An analysis showing the proportion of residents gaining benefit
from the increase in the number of electronic identifications held on the credit
bureau.
 Credit Scores - An analysis showing the proportion of residents gaining benefit
from having their credit score increased by positive rental payment history.
 Tenant Support - An analysis showing the proportion of residents that have
impaired credit histories and might benefit from financial education or other
support services.
Your data will not be shared and will be used for evaluation purposes only.
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Joining the Rental Exchange
Phase 1- Proof of Concept
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Joining the Rental Exchange
Phase 2- Full Implementation
Access to the data is compliant with the Data Protection
Act 1998 (DPA) through an approach that has been fully
agreed with the Information Commissioner’s Office (ICO).
The sharing of rental payment history is made possible
once residents are presented with a Fair Processing
Notice that informs them of the intended uses of the data.
BII/Experian have produced supporting material to assist
in ensuring tenants are positively engaged. Additionally,
work is progressing to deliver a targeted programme of
financial education and support.
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Rental Exchange
Questions?
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Further Information
www.experian.co.uk/rental-exchange
www.bigissueinvest.com/alternative_credit_scoring
Mark Goodfellow
Head of Data for Rental Exchange
John Montague
Director of Early Stage Business
 07917 585231
 [email protected]
 07772 562302
 [email protected]
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