8 February 2008
Creates powerful partnership between ID verification and credit reporting databases
Media Release
Dun & Bradstreet has acquired a stake in FCS OnLine bringing together two of Australia's most powerful identity verification and credit reporting databases.
The move provides both Dun & Bradstreet and FCS OnLine customers with the ability to credit check and confirm consumer identities, in line with the Federal Government's new Anti-Money Laundering laws, in one transaction.
The shareholding and partnership is another step in Dun & Bradstreet's growth in the consumer credit reporting industry. Following D&B's launch of a consumer bureau in 2004 it has rapidly acquired customers and market share - including major banks, financial services companies, telcos and utilities - and led the industry in the campaign for reform of Australia's credit reporting laws.
The Bureau's rapid growth has changed the shape of the industry which was previously serviced by a monopoly provider and lacked much of the innovation driving credit reporting in overseas markets.
FCS OnLine has grown rapidly since its inception in 2002 and has marked out a unique space in electronic identity verification and customer contact services. FCS OnLine has access to a number of government and non-government data sources, including the Australian Electoral Roll which it has been granted special permission to use.
This provides the largest and most comprehensive identity verification service in Australia and positions FCS OnLine as the nation's leader in assisting organisations to comply with the Commonwealth Government's Anti-Money Laundering/Counter Terrorism Financing legislation. Critically the legislation requires independent identity verification and recommends electronic verification such as that provided by FCS OnLine.
The Dun & Bradstreet and FCS OnLine partnership means financial service companies can now comply with the new laws and conduct a credit check in the one transaction.
Dun & Bradstreet CEO Christine Christian believes the partnership reflects the approach D&B has taken to growing the credit reporting and consumer data industry since 2004.
"Since D&B entered the consumer credit reporting market we have pushed the industry to improve its offering to customers through innovation and our unique data and analysis", said Ms Christian.
"The partnership with FCS OnLine is another development in this story as we now bring together two of Australia's most comprehensive and unique databases. This allows us to provide financial service companies with a quicker and more reliable identity and credit check service than has previously been available in Australia."
FCS OnLine CEO Tony Fitzgibbon maintains that the partnership provides a powerful framework for future growth of the business and brings their customers greater access to decision-making data.
"This development allows FCS OnLine to provide an enhanced service to our existing customers and to grow our business. Dun & Bradstreet is complimentary in its approach to business while at the same time bringing a unique offering to our customers", said Mr Fitzgibbon.
The partnership is part of Dun & Bradstreet's broader strategy to double in over the next five years and to drive a large proportion of this growth through its consumer credit reporting bureau. The Bureau has been a key source of growth over the last two years.
The credit lending sector is itself expected to triple over the next five years. Dun & Bradstreet believes it can capture a large proportion of this growth as the turning credit cycle brings greater requirements for lenders to conduct more detailed credit analysis.
The industry is also being increasingly driven by automation with consumers demanding lenders provide on the spot approval for a range of products from mobile phone plans to major loans. The combination of electronic identity verification and online delivery of credit data now provided by FCS OnLine and D&B greatly enhances lenders' ability to meet consumer demands.
The partnership comes as new research points to the power of electronic identity verification. D&B Consumer Bureau research shows that consumers who are unable to have their identity electronically verified are three time more likely to skip out on paying their bills.
The use of electronic ID verification significantly reduces opportunities for fraud as the data cannot be readily manipulated. The reliability of the information is also increased via the use of third party, independent data sources, making electronic ID verification a quicker and more accurate method of identity checking than traditional paper verification.
For further information, please contact:
Danielle Woods
D&B PR Manager
+612 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.
