Card issuers join forces to share customer data
(6 December 2005 – UK) British credit card issuers Abbey, Barclaycard, Halifax, the Co-Op Bank and online bank Egg have all signed an agreement that will see them share customer credit information.
The move was prompted by UK politicians criticising banks for not sharing credit histories that would help prevent customers getting further into debt.
As a result of this new initiative, banks will swap customer behavioural data, which will include information on customer spend and repayment history.
UK credit reference agencies Experian, Equifax and Callcredit will act as repositories for the data.
Barclaycard chief executive Gary Hoffman said the move will improve issuers’ ability to make good lending decisions.
"Whether it’s a customer applying for a card or asking for an increased credit limit, the better information we have access to, the better chance we have of getting the decision right," he said.
Barclaycard is attempting to get other credit card issuers to join the initiative with the help of watchdog Apacs.
"Delivering improved data sharing is an important step and we look forward to working with others as they follow this lead. We now need to ensure that we use the information effectively, to make a real difference and to get the decisions right on behalf of our customers and our business," Hoffman said.
As a result of this new initiative, banks will swap customer behavioural data, which will include information on customer spend and repayment history.
UK credit reference agencies Experian, Equifax and Callcredit will act as repositories for the data.
Barclaycard chief executive Gary Hoffman said the move will improve issuers’ ability to make good lending decisions.
"Whether it’s a customer applying for a card or asking for an increased credit limit, the better information we have access to, the better chance we have of getting the decision right," he said.
Barclaycard is attempting to get other credit card issuers to join the initiative with the help of watchdog Apacs.
"Delivering improved data sharing is an important step and we look forward to working with others as they follow this lead. We now need to ensure that we use the information effectively, to make a real difference and to get the decisions right on behalf of our customers and our business," Hoffman said.
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