2010 (PDF, 1.1 MB) - Schufa

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8 Advantages we offer Without the SCHUFA report, loan applications from so-called risk customers would be more likely to be turned down, or the proportion of high-risk loans in the portfolio would increase. Losses of growth and earnings and dissatisfaction of the customer base would be the inevitable consequences. Credit bureaus, which operate between borrower and lend- er independently and on a competitively neutral basis, build confidence. In the reporting year, SCHUFA issued over 100 million reports to partners. In addition, more than 739,000 reports were issued to private customers. In order to facilitate this reliable exchange of information, SCHUFA invests considerable funds in IT infrastructure, in providing resources for record processing and consumer services. This infrastructure and SCHUFA’s more than 750 employees guarantee fast and direct communication channels to partners and consumers. More and more consumers expect to be able to buy their retail purchases on credit. One in three consumer households now pay for consumer goods not in cash but instead via credit financing. SCHUFA’s consumer products • Credit reports • Monitoring reports • Identity products • Address products • Information products • Score SCHUFA’s corporate products • Business reports • Analysis products • Data management • Commercial register products • Score The costs of procuring the information would increase considerably if there were no service provider such as SCHUFA delivering the creditworthiness information relevant for lending quickly and reliably. Particularly in the case of borrowers, who are less tied to particular locations, either lenders would have to collect more detailed information or borrowers would have to provide more information. If neither action takes place, the risks increase as well as the costs for consumers. Stable private credit market The development of private lending during the financial crisis shows that SCHUFA makes an important contribution towards enabling unproblematic lending and furthermore that it plays a key role in stabilising the credit market in Germany. The German consumer has proven to be a reliable and increasingly important factor in the German domestic market. In this regard, consumer loans have doubled their share of domestic loans to twelve per cent since the 1960s. Although ten per cent more instalment loans were granted from 2008 to <strong>2010</strong>, the proportion of loans executed in accordance with contract, at 97.5 per cent for <strong>2010</strong>, only fell by 0.1 percentage points compared to the previous year. This figure is therefore at the same positive level as 2009. This shows that interaction between the lending industry, consumers and credit bureaus functions excellently even in turbulent economic times and ensures stable relationships and, as a result, planning security for the economy over the long term. The reason for the reliable payment of instalments by borrowers is the robust German employment market. However, careful, thorough checking of loan applications by banks also plays an important role. Credit-financed private consumption safeguarded by reliable information thus proves itself to be an important pillar for the economy. The value of positive information For more than 91 per cent of people, the information stored in SCHUFA’s database is exclusively positive, and it documents the contract-compliant behaviour of consumers. With positive information, lenders can assess potential borrowers’ creditworthiness much more precisely than they can in a data landscape based exclusively on negative information, as positive informa-
tion gives lenders a better overview of borrowers’ overall financial situation and allows them to help avoid over-indebtedness risks. An international study has shown that the introduction of positive information by credit bureaus allowed lenders to fulfil considerably more loan applications from credit applicants. Borrowers also benefit by providing positive information on their business activities to credit bureaus or partners of credit bureaus, and thereby bolster their financial reputation. Advantages we offer 9 ‘The European domestic market for private customers is still a long way off. Private banks in Germany support the European policy attempts to grad - ually create an integrated retail-banking market in Europe. This would increase competition in national markets and give consumers a larger product range at more favourable conditions. In order to bring about these advantages, the European Commission has initiated several measures, such as the “Access to basic payment accounts” and the “Planned regulations on responsible granting of mortgages”. Both in the case of opening accounts as well as the creditworthiness assessment in the context of granting mortgages, SCHUFA’s services are playing an increasingly important role – in the future this will also apply to cross-border business.’ Dr Ibrahim Karasu, Member of the Management Board, Bundesverband deutscher Banken (Association of German Banks)
Page 1: Annual Report 2010 We build confide
Page 4 and 5: 2 Forward from the Executive Board
Page 6 and 7: 4 Advantages we offer Advantages we
Page 8 and 9: 6 Advantages we offer Vital financi
Page 12 and 13: 10 Advantages we offer Case study:
Page 14 and 15: 12 Advantages we offer New service
Page 16 and 17: 14 Institution reports
Page 18 and 19: 16 Institution reports Prof Dr Winf
Page 20 and 21: 18 Institution reports The Consumer
Page 22 and 23: 20 Institution reports Topics and n
Page 24 and 25: 22 Facts and figures Facts and figu
Page 26 and 27: 24 Facts and figures Partners, subs
Page 28 and 29: 26 Facts and figures The year 2010
Page 30 and 31: 28 We build confidence
Page 32: 30 We build confidence Imprint SCHU

2010 (PDF, 1.1 MB) - Schufa

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