China’s social scoring system takes the idea of credit vetting to another level

Featured

 

chinasocialcredit

Picture credit: Kevin Hong

Your credit score makes up a significant part of the whole when it comes to your social status – something we at pbVerify value, and use to promote sound decision making.

 

As SA’s leading credit data bureau, pbVerify knows how important it is – for businesses and consumers alike – to be familiar with their credit history, and well aware of their current credit status. There are good reasons for providing access to credit score information, all of which are aimed at promoting financial health and good business decisions.

The same beneficial system, however, has seemingly seen a more sinister twist, with the well-publicised move by the Chinese government to take it to a whole new level – one that instils fear, rather than protecting the people it is in place for.

We all know about social status and, whether we like to admit it or not, it is important to us. Nowadays we use social media platforms like Facebook, WhatsApp, Instagram and Snapchat to project a certain idea about ourselves to the world around us – a feature these platforms refer to as a user’s “Status”.

pbVerify specialises in one of the most influential aspects or “scores” that make up a personal status – your credit score. While most consumers are all too familiar with what a credit score means, the implications of a negative score and the importance of knowing your score, the system the Chinese government plans to implement over the next few years, in which every citizen is tagged with a social score, sounds like the makings of a science fiction novel.

China’s Social Credit System (SCS), whereby the government plans to rank its citizens based on their social credit, is due to be implemented in full by 2020, although its wheels are already well in motion. It basically allocates each citizen a social score card based on – among other things – their credit history, behaviour, philanthropic contributions and even outlook on life and events. The government will garner this information based on citizens’ accounts and network activities.

Going forward, this social credit score will be used to rank citizens and reward – or punish – them accordingly. Some of the implications include travel bans, exclusion from top schools (for kids of parents with low credit scores) and from certain jobs, slow internet connection, exclusion from hotels, and even registration on a public blacklist.

In development for some time already (reportedly conceived around 2014 in its current form) and set in motion in earnest in late 2018, China’s SCS has already seen millions of Chinese citizens prohibited from travelling, with a reported 1.75 million air ticket purchases, and 5.5 million train ticket purchases denied last year.

While China claims its aim with the SCS is to enhance trust and social stability by creating a “culture of sincerity”, most are less optimistic about the system’s ultimate goal, with many referring to it as an Orwellian Dystopia, and calling it “nightmarish”.

The jury is sure to be out on this one for some time, at least as far as the general public goes. If nothing else conclusive for now, it does go to show the weight social scores – or statuses – can hold.

We are all about empowerment

At pbVerify, we pride ourselves in providing a service that is accessible, easy to use – and above all, beneficial to our customers. Our focus is on empowering our customers every step of the way, by imparting knowledge that enables sound, intelligent financial decisions.

We constantly strive to put the power squarely in the hands of local businesses, to enable them to quickly and comprehensively make informed decisions with regard to the customers they onboard.

To this end, we recently bolstered our TransUnion Business Report with Quick Vet 4 Business (QV4B) – an instant online tool that enables credit vetting decisions in a matter of seconds.

Granting credit to new customers does not need to be a long, complicated process. Read HERE for more on how QV4B can speed up your business’s decision making and credit granting processes, giving you more time to attend to the things that matter most.

For more information or to speak to a pbVerify consultant call 010 300 4898 or email support@pbverify.co.za.

[REFERENCES]

  1. Wikipedia – Social credit system
  2. ABC Australia – China uses social credit surveillance system to ban millions from buying plane and train tickets
  3. Opploans – For people with bad credit, China’s ‘Social Credit’ scores sound like an actual nightmare
  4. Wired – Big Data meets Big Brother as China moves to rate its citizens
  5. Wired – The complicated truth about China’s social credit system
  6. pbVerify Blog – pbVerify bolsters credit risk management portfolio
  7. TransUnion – Quick Vet 4 Business

 

pbVerify bolsters risk management portfolio

Featured

pbVerify qv4b pic

SA’s number one data bureau has added a new TransUnion product to help companies eliminate risk when it comes to choosing who they do business with.

As South Africa’s number one data bureau, pbVerify is constantly striving to put the power of knowledge and sound decision making in the hands of local businesses.

To this end, we have bolstered our TransUnion Business Report with Quick Vet 4 Business (QV4B) – an instant online commercial credit vetting tool that will allow businesses to quickly and comprehensively make informed decisions with regard to the customers they onboard.

The new business score gives businesses an accurate overview in one quick view as to what the status of a potential business or customer is, without them having to go through the lengthy process of investigation and manual vetting. Via just one automated online process, businesses can now identify who the profitable and low-risk customers are, and move swiftly forward.

The latest addition forms part of pbVerify’s expansive range of credit risk management products, which come with a top-notch support system. Businesses can access all Credit Bureau products via one secure, efficient online platform.

“This new score is going to make the decision-making process a lot easier and quicker for our customers, and give them total peace of mind that they have made the right credit decision,” says System admin-support manager Sean Bennett.

Seeding success

Understanding and implementing risk management is absolutely crucial when it comes to the success of your business. In today’s volatile financial milieu, no company can afford to enter business deals with businesses that have questionable financial footing.

Unfortunately, too many honest businesses fall prey to dishonest or irresponsible parties that don’t fulfil their end of the business deal, whether it’s failure to repay a loan, defaulting on payments or being dishonest about credit histories, and this ends up hurting profits, productivity and reputation.

pbVerify takes the risk factor out of your business decisions with its risk management tools. And it couldn’t be easier to sign up. After registering for free, you will have instant access to detailed financial information, credit histories, public trace record information and more. There’s no monthly fee – you only pay per search.

pbVerify offers reports on individuals, companies, closed corporations, consumers and properties in South Africa.

For more information or to get in touch with one of our dedicated pbVerify support agents, go to www.pbverify.co.za.

 

Why is it important to credit check prospective customers?

Featured

credit-check-signThe importance of knowing the credit worthiness of new customers cannot be emphasised enough.

It is undeniably important for any business to have customers – whether it be individual consumers, other businesses or suppliers – but it is even more important that the customers you do business with are reliable when it comes to paying you for the services or products you tender.

And, while it may seem counterproductive – even absurd – to turn business away, the value of having quality, paying customers who settle their bills on time, cannot be compared to the value (or lack thereof) of having customers who become a burden because they are constantly defaulting on payments.

The bottom line is, you should never be afraid to turn non-creditworthy customers away because, at the end of the day, it is your company’s bottom line that is on the chopping block.

No business – no matter how big or small – can afford to jeopardise profits. In fact, bad debt and cash flow issues have been positioned as the two main reasons start-ups and small businesses fold.

You also need to be aware that, legally, if you either fail to carry out a credit check or you decide to give a non-creditworthy candidate the green light, you have no recourse down the line should they default on payment and, inevitably, your best option would be to write the debt off.

So, without question, it pays to do your homework. In fact, the advantages of carrying out thorough credit checks go beyond just protecting your profits. The process also allows for intensified sales efforts overall, as these can be confidently spent on the right kind of client, the kind that will add to your income – and not take away from it.

pbVerify offers a range of B2B and B2C Credit Risk Management tools for any size business in South Africa that grants credit. For more information visit our products page HERE

New partnership simplifies company registration process

Featured

company-registration-MalaysiaCompany and domain names can now be registered as one, making it easier for companies looking to manage credit risk to access pbVerify’s full suite of services.      

A recent partnership between three South African agencies, allowing company and domain names to be registered together, has streamlined the process of registering local companies and, in turn, of accessing pbVerify’s suite of verification products.

Earlier this month it was announced that the Companies and Intellectual Properties Commission (CIPC), the ZA Domain Name Authority (ZADNA) and the ZA Central Registry NPC (ZACR) had collaborated to make it possible for new companies to register with the commission and claim a parallel co.za domain name at the same time.

The move will not only give new companies greater control over their intellectual property, it also significantly simplifies the process of acquiring unique online credentials – a requirement for access to many professional services, including pbVerify’s credit vetting products.

Daily online news portal, SME South Africa, cites ZACR CEO Lucky Masilela as saying the three-party agreement enables new enterprises to protect their fledgling online identities. “This innovative offering seamlessly combines the offline and online worlds in a way that provides total convenience and protection for start-ups.”

Credit management services

pbVerify is South Africa’s leading data bureau, offering small-to-medium enterprises (SMEs) and corporates all the information needed in order to make informed, intelligent business decisions to the end of mitigating credit risk.

The easiest way to verify businesses, people and property in South Africa, pbVerify’s suite of credit management services includes business credit checks, CIPC business and director searches, Home Affairs ID verification, SARS advanced VAT verification and bank account verification – among others.

Minimum requirements for companies seeking full access to pbVerify’s services are: a business email address; a business landline number and valid business registration details pertaining to an active business.

Now, thanks to the CIPC, ZADNA and ZACR partnership, companies can quickly and painlessly ensure they are able to tick all the above boxes.

Masilela describes the partnership as a “a fantastic example of domain name space pioneering coupled with out-the-box thinking in the area of public-private partnerships” and says the organisation is looking to launch further services for new enterprises, start-ups and other commercial users in future.Masilela describes the partnership as a “a fantastic example of domain name space pioneering coupled with out-the-box thinking in the area of public-private partnerships” and says the organisation is looking to launch further services for new enterprises, start-ups and other commercial users in future.

For more information on pbVerify’s services call 010 300 4898 or send an email to support@pbverify.co.za.

 

REFERENCE:

SME South Africa – Attention Startups! Company and Domain Names Can Now be Registered Together

 

Want financial freedom? Know your credit status

Featured

have-you-pulled-your-credit-report-yetDespite the country’s robust credit information industry, most South Africans do not know what their credit profile actually looks like.

It’s an all-too-common scene: you apply for an account at a retail store, and are taken aback when your application is declined on the grounds of bad credit. As far as you know, you’re the poster child for sound financial management – so what went wrong? Most likely, “as far as you know” is not far enough.

Sadly, even though South Africa has an incredibly strong credit information industry, many citizens are in the dark when it comes to what their credit profile actually looks like.

Earlier this month, local news site News24 cited African Bank executive Alfred Ramosedi as saying that many South Africans were “surprisingly unaware of the importance of a good credit profile”. What’s more, he said, many didn’t even know what a credit profile was – and in instances where they did know, they rarely checked their own personal credit profile.

And yet, the importance of managing your credit status – a task that begins with knowing your credit status – cannot be downplayed in today’s volatile economic climate. As Ramosedi rightly points out, many potential employers nowadays look at job applicants’ credit reports as a means of judging character and level of responsibility.

South Africa’s leading property website, Property24, lists bad credit records as the number one reason banks reject home loan applications, while car finance giant Carfin says the first thing you need to do if you’ve been declined for finance is “Find out why” – i.e. check your credit report. Step number two, says Carfin, is to improve your credit score.

No excuse

 The Credit Bureau Association points out that every single credit-active person in South Africa has a credit profile that shows how they manage their debts and accounts.

Fortunately, if you are a South African who wants to do the smart thing and familiarise yourself with your credit profile, you don’t have to climb any mountains to do so. On the contrary, our country’s credit information industry makes the process next to effortless for you. So much so, that there is really no excuse for not knowing your credit status.

On a scale of 0 to 8, South Africa ranks 7 on the World Bank’s Depth of Credit Information Index – a measure of the availability of credit information, where 8 is the highest level attainable by any country.

Additionally, according to the National Credit Act, every consumer has the right to one free credit report once in a 12-month period from the country’s main credit bureaus, namely TransUnion (formerly ITC), Experian, XDS and Compuscan.

A credit report is basically a comprehensive statement outlining your financial history and standing. It comprises information on your spending and borrowing patterns, how well you meet your financial obligations, general spending and payment trends and contact details. It also lists any judgment you may have against you, as well as any money owed to creditors.

MYpbVerify* – the most versatile personal credit check service on the Net – offers you this and more. The tool not only gives you instant online access to your personal credit report, it also allows you to customise your report with variable information.

MYpbVerify offers various pricing options to suit your needs. Depending on your status and credit history, you can choose either a Basic credit report, or a more advanced (Standard or Premium) report. The latter option includes directorship information, deeds data (properties owned), your personal Compuscan credit rating score and more.

This year, do yourself a great favour – get to know your credit status and start building a good credit profile today. Not only will you never have to fret about being turned down when applying for credit again, you will also be able to take advantage of the better repayment  terms that come with having a strong credit report.

*MYpbVerify™ is an online credit check system designed for consumers in need of quality personal credit check reports. The product offers three different credit reports, all instantly sent via email in PDF format once an order is completed. 

[REFERENCES]        

News24 – Ways to take control of credit

The Credit Bureau Association – http://www.cba.co.za/

The World Bank – Depth of Credit Information Index

Property24 – Why banks reject your home loan

Carfin – Have you been declined for vehicle finance?

 

Credit vetting – an essential key to SME success

Featured

credit-vet

For SMEs, sound risk management via credit vetting is not only advisable, it is absolutely essential.

Wasting precious time and resources chasing down debtors for money is not only undesirable for any business, it can be downright destructive. The good news is, there is a way to avoid this – and it is inexpensive and painless. Two words: credit check.

If you are in business, you will know that cash flow is king. This is especially true in the in the small to medium enterprise (SME) environment, where finances are particularly tight. Clients that default on payments can – and inevitably do – seriously jeapordise the success of your company.

A foolproof way to protect your business – and ultimately boost its financial fitness – is through consistent credit vetting.

Credit vetting is simply the process of affirming the credit worthiness of customers in terms of financials. Checking the credit status of your clients greatly minimises uncertainty around whether your invoices will be paid, as it provides an overview of their credit rating and reveals whether there are any judgements against them, or whether they have defaulted on payments in the past.

Simple step towards success

According to Leon van der Merwe, senior business development manager at customer communications firm PBSA, the percentage of small simply overlooking this critical process is staggering.

“Simply taking the steps to check the credit status of companies and directors before doing business with them is straightforward, very affordable and it could make all the difference.”

A detailed credit application document with the correct capture information, credit vetting consent and related terms of agreement will protect the financial wellbeing of your organisation, he adds.

All of this can be easily accessed via pbVerify, a PBSA product that offers a user-friendly online credit vetting service. Specifically for small to medium sized businesses, pbVerify is connected to all major credit bureaux and credit data providers and is credible and accurate.

“Neglecting this crucial step towards managing a successful business can cost you profoundly. Having an overview of the credit worthiness of potential customers, on the other hand, will help you make better decisions, in turn saving you time, trouble and money,” concludes Van der Merwe.

For a comprehensive view of all pbVerify’s vetting solutions, please visit www.pbverify.co.za

Are cash-strapped consumers affecting your business’s credit risk?

Know your customer by investing in an online credit check, consumer trace and ID verification tool

Know your customer by investing in an online credit check, consumer trace and ID verification tool

Whether you earn a salary, run a business or are in charge of risk management services for your company – you probably know that people are increasingly strapped for cash. Even though the dreaded January has passed (where people are usually a bit more broke than usual thanks to over-spending during the holiday season), it seems like many South Africans are still struggling to keep their heads above water. Why?

According to the latest TransUnion Consumer Credit Index (CCI), consumer credit health deteriorated at a slower pace in the fouth quarter of 2013 than in the previous four quarters, but it is still under pressure. This, coupled with rising food and petrol prices (as well as the hike in interest rates that was announced towards the end of January), means it’s not surprising that people are struggling to pay their bills.

“Unsecured loan approval rates have moderated, indicating that credit grantors are generally applying a more conservative approach to mitigate their risk and have, for now at least, been able to stabilise their loan defaults. Much will depend on whether overall economic growth and pressures in the job market stabilise in 2014, and this is far from certain at this point,” commented Transunion CEO, Geoff Miller.

In order to minimize your business’ financial risk, you need to know exactly who you’re dealing with before you process a transaction or extend a line of credit, explains Leon van der Merwe, Business Development Manager at local credit check company pbVerify.

Know your customer by investing in an online credit check, consumer trace and ID verification tool

“Fin24 recently reported that in aggregate, consumers haven’t been able to reduce their credit card utilisation since 2010. If your company relies on payments from South African consumers – which most do – it would be wise to invest in a fool-proof ID verification and online credit check tool so that your employees can make sure they are dealing with clients that would be able to honour their commitment of repaying any outstanding debt, fees or bills to your company,” explained van der Merwe.

pbVerify’s online credit check system allows you to know your customer by giving you 24.7 access to current Consumer and Business credit information. Whether you need to verify the identities of consumers, do background credit checks on consumers and/or businesses, verify company and director registration detail, verify VAT registrations, verify Deeds information on properties or need to do pre-employment and academic background verifications, pbVerify does it all. The best part is that pbVerify is one of the most cost-effective solutions in South Africa, giving you the option to only pay for what you use (as well as the ability to process bulk consumer traces).

You can also, follow us on Twitter and Like us on Facebook to stay updated with all the news and new solutions here at pbVerify.

Author: Google