11 March 2008
Impacts, implementation and outcomes
Click here to view the full speech
Speech: Credit Risk Management Conference 2008
The extraordinary growth of the Australian economy over the last decade has been driven by a number of factors.
Receiving the most attention generally is the mining boom. Yet equally, and in some states more important, is the contribution of consumer spending.
Overall consumer spending accounts for approximately seventy per cent of Australia's gross domestic product, putting it front and centre in any discussion about the growth of the economy moving forward.
Underpinning the strength and growth of consumer spending has been access to credit. This has been driven by both demand and the significant changes that have occurred in the consumer credit market as a result of financial deregulation.
That deregulation has produced increased competition between lenders and innovation in the type of credit products available to consumers.
It is the significance of the contribution that consumer credit makes to the nation's economic growth that underlines the importance of the assessment and risk processes central to ensuring the free flow of that credit.
In a nutshell, at the heart of every lending decision is the credit assessment process. And at the heart of the credit assessment process is credit reporting.
It is this reality that makes the debate about Australia's credit reporting system so important.
This was true in 2004 when the issue was re-introduced to the political agenda. It is even more true in 2008 when the global credit markets are suffering from a severe bout of risk aversion and the key to unlocking those credit markets is transparency and quality data.
The issue of credit reporting has been hotly debated in recent times. Yet it is one of those issues that people in the industry follow closely but can be lost on those living a normal life.
If you are unsure of what we mean when we talk about credit reporting, think credit checks. Essentially a credit report provides a lender with data and analysis on the credit worthiness of an individual.
The information above is an extract from a speech delivered by Christine Christian, D&B's CEO, at the Credit Risk Management Conference in March 2008. To view the complete version please download the PDF.
For further information, please contact:
Danielle Woods
D&B PR Manager
02 8270 2926
About D&B
D&B is the world's leading provider of business-to-business credit, marketing and purchasing information and receivables management services. D&B manages the world's most valuable commercial database with information on more than 130 million companies.
Information is gathered in 193 countries, in 95 languages or dialects, covering 186 monetary currencies. The database is refreshed more than one million times daily as part of D&B's commitment to provide accurate, comprehensive information for its more than 150,000 customers.
The Australasian operations were bought out by the senior management group in August 2001. It was the first MBO of a wholly owned subsidiary in D&B's history worldwide.
Today Lazard Carnegie Wylie owns an approximate 90% stake in DBA and the local management team a 10% stake.
Strategies for future growth include developing DBA's commercial and consumer credit referencing business; expanding its receivables management outsourcing business; maintaining its lead in the development of unique credit and risk scoring products; and developing new products specifically tailored to the Australasian market. DBA currently employs over 500 people in Australia and New Zealand.
