Credit underwriting and third party data confirmation China Debit Reporting Bureau http://www.ucms.com/Larry-Chiang-World-Bank-Beijing-Presentation.htm

1. Strengthening Public and Private Credit Registry Ties Jun 20, 2011  2004 UCMS, Inc. Confidential and Proprietary Reproduction Prohibited World Bank 2004 In Beijing By Larry Chiang

5. Jumpstarting A Country’s Credit System with Thin File Analysis (TFA) Jun 20, 2011 Incomplete Files (Private) Credit System Old Credit Data New Credit Data TFA Private Sector Data Public Sector Data PCA Not Commercially Organized Add’l Dimension Adjust The Axis of Emphasis

6. Jun 20, 2011

8. A Quantum Leap Forward With Thin File Analysis Jun 20, 2011 Old Way (Bad Chicken, Bad Egg) Thin File Analysis Who Private and public sectors are at odds Together Where Your server Your server What Scorecard unknown Formula + FICO Development When Not really even once ‘ Underwritten’ 3x Why Stab in the Dark Scientific! How Copy from other country and hope for non-collapse Custom Country Optimization ++

10. The Old Way Jun 20, 2011 f (  ) The old technique of measuring credit worthiness with a score from 350-800. This (with all its parameters) is a one dimensional match.

13. Adding a New Axis- Public Registries Jun 20, 2011 “ f” is the function with traditional credit data with CRAs “ e” function factors in applicant data, gov’t agency data & more

14. Thin File Analysis Marries Both… Jun 20, 2011 “ f” is the function with traditional credit data “ e” function factors in applicant data, gov’t agencies & more

15. The New Way Jun 20, 2011 You set how much influence the epsilon function gets

16. Recipe for a Rough Transition Jun 20, 2011 f usa (  ) The credit scoring system is directly imported from one country to Another. Charge-offs shoot over 17% f korea (  )

18. Customize an “Imported” Credit System Jun 20, 2011 “ f” is the function with traditional credit data “ e” function factors in applicant data, gov’t agencies & more

20. Private Registries And- Public Registries Jun 20, 2011 “ f” is the PRIVATE function that slightly depends on “e” function “ e” is the PUBLIC function supports a temporarily weak “f” function

21. Perhaps Yet Another Axis is Needed Jun 20, 2011