Controlled by five banks, Itaú Unibanco, Santander Brasil, Bradesco, Banco do Brasil and Caixa Econômica Federal, Quod is the newest credit bureau in the market. The intention is to compete with existing bureaus such as Boa Vista SCPC, Serasa Experian and SPC Brazil.
What is Quod?
Quod is the new credit bureau in the Brazilian market managed by five banks. It will work based on the data banks have about their customers’ payment histories, allowing them to offer lower interest rates to lower risk customers.
The system will be managed by Quod, but has technology from the US group LexisNexis, which already operates this type of company in the United States.
When does it start working?
The new credit bureau is expected to start operations by the end of this year. Your base should contain data from about 100 million people.
What data do you consider?
Quod arrives in the market with access to the account data base of banks Itaú Unibanco, Santander Brasil, Bradesco, Banco do Brasil and Caixa Econômica Federal, which are responsible for 90% of the assets of the national financial system. This information will be made available by the bureau also by its competitors.
Who will use?
According to data released in the press, in addition to the banks that are creating Quod itself, the service should also be offered to retailers, suppliers and other sectors of the economy that offer credit to individuals or small businesses.
Default in Brazil
According to LexisNexis data published on the website of Época Negócios magazine, the average default rate over 90 days is 1.7% in the United States. In Brazil, according to the most recent data from the Central Bank, it is 4.7% (April).
What is a credit bureau?
Credit bureaus are companies that collect from creditors and public sources information about the consumer or borrower’s credit history. These institutions compile data from individuals and small businesses, including records of loan repayments, water, electricity, telephone and utility bills, court cases, and so on. Based on these data, the bureaus also create credit scores, which help determine the likelihood of that consumer defaulting.