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Published by PuwitC, 2023-04-17 22:29:22

NCB profile 2023-6

NCB profile 2023-6

National Credit Bureau Thailand


• Basic Services - Bureau Consumer Credit Report - Bureau Commercial Credit Report - Bureau Credit Review • Operation Services - Bureau Server to Server Solution - Bankruptcy check - Consent • Analytical Tools - Consumer Credit Score (TransUnion) - FICO SME Score (FICO) • Risk Management - Bureau Credit Characteristic - Bureau Statistic Report • Compliance Services - Bankruptcy check 03 • Vision • History • Message from the Chairman • Board of Directors • NCB Management • Organizational Structure 11 Future Outlook 12 13 Key Figures Business Portfolio Overview


To be the key organization in providing credit information services, helping financial institutions manage risk and encouraging consumers to have financial discipline. This in turn, will strengthen and stabilize Thailand’s economy. 1 2 3 4 4 Provide information services of international quality standards Maintain quality of information at the highest standards Ensure that information systems are safe, secure, and of international standards Create a culture of financial discipline Effective corporate governance at all levels of the organization Vision Mision 3


Why Credit Bureau? Many still question the reason behind the establishment of the Credit Bureau. The Credit Bureau or NCB was established in 1998 under the government’s policy at the time. The government realized that one major factor behind Thailand’s economic crisis is the lack of a credit information collection organization within the financial sector. Prior to the establishment of a credit bureau in Thailand, it was not possible for financial institutions to obtain the complete obligation and payment history of a borrower and thus, resulted in an inaccurate credit analysis. MEMORANDUM ON ECONOMIC POLICIES OF THE ROYAL THAI GOVERNMENT December 1, 1998 History Letter of Intend No. 6 Provide credit score service 1997 1998 2000 2002 2005 2008 2016 No Credit Bureau, Asian Financial Crisis LOI No.6 and establish credit bureau Set up 2 credit bureaus (CCIS and TCB) Credit Information Business Act M&A >> National Credit Bureau Amend the Act to cover “Credit Score” and “Statistic Report” 4. Information sharing among creditors The BOT will direct the establishment of a Credit Bureau, for full exchange of information among creditors (for all banks, including finance companies, trade creditors, and branches of foreign banks, to participate). Fourth, we will introduce shortly a Credit Bureau Bill allowing the establishment of credit bureaus to facilitate the exchange of information among creditors. In 1998, Government supported the establishment of two credit bureaus. The role of the newly established organizations was to collect and assemble the credit information and payment history of financial institutions’ clients. In return, the two credit bureaus served credit inquiries to these financial institutions. In 2005, The two bureaus merged and became National Credit Bureau Company Limited or NCB, operating under the Credit Information Business Act B.E. 2545. History of Credit Bureau in Thailand 4


Shareholders Structure Government Banks and PCC Capital Transunion Inc. Business Online (BOL) Members of Thai Bankers’ Association (TBA) (TTB, SCBT, SCB, KBANK, KTB, CIMBT, UOBT, BBL, KRUNGSRI) 51% 24.5% 12.25% 12.25% 5


Message from the Chairman Mr.Poomsak Aranyakasemsuk Chairman Credit information is relevant and vital to many sectors of the country. Thailand’s economy serves as a strong performance indicator for the financial industry. Firstly, NCB’s statistical data can be used to analyze risk and credit transactions, detect and identify signals within various institutions to create applicable policies and risk management practices. Fundamentally, this credible source of information serves to prevent a system collapse or an economic crisis that Thailand has surely experienced in the past. Therefore, it would be fair to say that this information serves as the bedrock foundation of the financial system. With all components working together harmoniously and effectively, the Thai financial system can avoid deposit guarantee schemes altogether as the problem will be resolved at the root of the cause. Secondly, financial institutions have extensive risk management processes in place with the support of Credit Bureau data, to prevent bad loans and economic instability. Financial institutions use Credit Bureau data, including financial status, payment history and current debt to assess the financial health of debtors. Finally, Thais can access their own credit information through NCB’s self-enquiry service. They will be able to gain a better understanding of what lenders may see if they check their credit and can assist in preparation for a new loan application. If the information is inaccurate or requires updating, a correction can be made upon request. 6


7 Board of Directors (1/2)


8 Board of Directors (2/2)


9 NCB Management


Organizational Structure Board of Directors President & CEO Nomination and Remuneration Commitee Audit Comittee Internal Audit Dept. Internal Audit Credit Scoring Audit Executive Advisor Corporate Strategy & Development Dept. Credit Scoring Corporate Strategy IT Strategy/ Master Plan Bureau Score Development Statistical Database ISMS & ISO Risk Management PDPA Member Compliance Consent Management Self Enquirry & Credit Scoring Dispute Management Legal International Relations System & Network Security Database Management Product Development Security Operation Center Training Sale & New Member Data Quality & Data Submission Credit Scoring Validation & Monitoring Public Relations & Special Activities Financial Literacy / Public Education Call Center Administration Accounting HRD Risk Management Committee Risk Management & Data Governance Dept. Member Compliance Dept. Consumer Service Dept. Legal Dept. Information Technology Dept. Marketing & Member Relations Dept. Operation Dept. Business Relations & Corporate Image Dept. Accounting Finance & HR Dept. 10 NCB Management


Bureau Statistics Report Statistical reports showing the portfolio overview and industrial comparisons for members. NCB provides 20 standard reports and 5 tailor-made reports Besides developing our information security to meet international standards, we have continuously improved our systems for members, especially the risk management tools. NCB Product Portfolio 1 2 4 3 5 NCB-to-Member Credit Bureau Products and Services Bureau Consumer Credit Report A statement that has information about an individual's personal credit activity and current credit situation Bureau Commercial Credit Report A statement that has information on the credit activity and current credit situation of a business Bureau Credit Review A statement that has information on the credit activity and current credit situation of a business or an individual, used to re-assess one's credit profile Bureau Server-to-Server Solution A ready to use credit reporting software to facilitate Server-to-Server information inquiry Bankruptcy Checking for KYC/CDD The bankruptcy enquiry service crosschecks information with data from the Legal Execution Department prior to a new loan approval Original Consent/Fax Consent Members may choose to submit consent forms via fax and the consent form will be considered the official document E-Consent Electronic consent via NDID or applications belonging to financial institutions Consumer Credit Score A prediction of an individual's creditworthiness in the next 12 months, reflecting the relative likelihood of a default on a credit obligation FICO SME Score A prediction of the creditworthiness of a business in the next 24 months, reflecting the relative likelihood of a default on a credit obligation Bankruptcy checking for data submission The system will usually reject information on accounts belonging to individuals that have been discharged of bankruptcy for over 2 years. However, NCB will provide this information per member's request Basic Service Operation Service Analytic Tools Risk Management Compliance service Launched in 2011, the Consumer Credit Score is one of the risk management tools offered by NCB. An individual’s credit score is a calculation of their creditworthiness, reflecting the relative likelihood of a default on a credit obligation. The score ranges from 300 to 900, while grades range from AA-HH. The Consumer Credit Score represents the possibility of delinquency in the next 12 months, of 10,000 people who fall in the same score range. Hence, financial institutions will take this score into consideration in conjunction with their credit policy and other factors, to carry out the credit approval process. Moreover, NCB has prepared an Early Warning system, calculated from the existing database. This system will notify members of accounts with over 90-day defaults, allowing our members to be cautious with their credit analysis process. 11


Key Figures 14.29 16.02 18.91 21.41 34.65 43.85 53.97 54.92 70.08 64.58 2017 2018 2019 2020 2021 New Loan Credit Review 78 Y2012 126 Dec 2022 (YTD) Dec 2022 (YTD) Dec 2022 71.04 Million Trx Y2021 66.17 Million People 42.43 Million People Y2021 Working Age (15-59) of NCB Consumer Database MEMBERS >>> 17 Commercial Banks 6 SFIs 29 Non-bank, Consumer Finance, Nano Finance 65 Hire Purchase, Leasing 9 Others NEW LOAN CREDIT REVIEW 45.93 Million Trx Y2021 VS Y2022 Dec-21 Dec-22 34.65 45.93 64.58 71.04 17% 61% 22% Age 20-60 Age>60 Age<20 or N/A 1 2 3 NUMBER OF ENQUIRIES 4 DATABASE 5 6 TOTAL POPULATION (NATIONAL STATISTICAL OFFICE) 7 NCB CONSUMER DATA COVERAGE 75% 12 134.76 Million Acc. Consumer Commercial 130.17 Million Acc. 32.48 Million People 4.59 Million Acc. 0.34 Million Companies


Information Security is a core of credit bureau The most significant issue of credit information is information leakage. In NCB, the information security system has been implemented strictly. We do not leave any gap for any employees or any persons to invade through our database. Now, NCB has five information security assessments annually as follows: Future Outlook These system assessments will guarantee that all credit information is fully protected. CEO, executives or unrelated persons do not even have the right to see credit information. Only assigned employees are given permission to log-in to the system which username and password are required. Penetration test of information technology system by independent auditor ISO/IEC 27001:2005 or Information Security Management Standard Information Technology independent audit by PricewaterhouseCoopers (2009-2011) Working process, and legitimacy by the Bank of Thailand Internal audit 1 2 3 4 5 Every transaction is recorded in log file that can be traced back. The information security is then the highest standard of the organization. NCB will continue to maintain the highest security measures to ensure that all credit information is protected, standards are maintained and privacy is upheld. 13


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