linking unlinked data. south african credit arena 4 815 credit providers 2 023 debt counsellors 14...
TRANSCRIPT
Linking unlinked data
South African Credit Arena
4 815 Credit Providers
2 023 Debt Counsellors14 803 Debt Collectors
# accounts 79.42m
14 Credit Bureaux
22.12 m Credit active consumers
14.9 m unemployed
3.3m individuals paying 99% of tax
15.6m social grants recipients
14.9m workers
46m consumers on average on Credit Bureau
NCR Credit standing
Amnesty removals
Amnesty removals
NCR Credit standing
NCR Credit standing
NCR Credit standing
NCR Consumer impairment
NCR Enquiries origin
NCR Enquiries origin
Full picture?
Credit vs Non Credit accounts
2007
Q4
2008
Q1
2008
Q2
2008
Q3
2008
Q4
2009
Q1
2009
Q2
2009
Q3
2009
Q4
2010
Q1
2010
Q2
2010
Q3
2010
Q4
2011
Q1
2011
Q2
2011
Q3
2011
Q4
2012
Q1
2012
Q2
2012
Q3
0
10
20
30
40
50
60
70
80
% Credit accounts % Non-credit accounts
This is an example text. Go ahead and replace it with your own text. It is meant to give you a feeling of how the designs looks including text.Tracking Credit and Debt data
Category Q endJun 2007
Q endDec 2013
Q end Jun 2014
NCA CR Active Cons 16.78 m 20.64 m 22.12 m
NCA Accounts 52.06 m 73.18 m 79.42 m
NCA Enquiries 104.73 m 348,66 m 365.76 m
NCA Total Credit R 102 370 b R 117 213 b R107 190 b
NCA Impaired 11.36 m 19.74 m 19.27 m
NCA Debt book R1 025 884 t R 1 520 031 t R 1 568 991 t
Municipal Debt ’05 R27 700 b ’10 R56 400 b ’13 R 93 000 b
Current consumers on Credit Bureaux 46.13 m
Municipal Debt
DURBAN - KwaZulu-Natal municipalities face having to write off at least R1.6 billion owed to them, the SA Local Government Association said on Tuesday.Thursday 14 November 2013 - 3:01pm
IMFO: Municipal debt – Rev sources
Municipal Debt Profile
Municipal Debt Profile
Current Municipal Debt in South Africa
R93 billion!
Municipal Collection challenges
• 100% collection impossible due to:- Poor consumers- Liquidations- Insolvencies- Political moratoriums- Data integrity and incorrect billing- Insufficient and insignificant bad debt write-off- Interest on debts (both recoverable and irrecoverable)
etc - Poor service by some municipalities
Credit Bureau Data Sources
Credit Bureau
Credit providers
Telcos
Insurers
Subscribers
Courts
Home Affairs Deeds
office
Registrar of companies
Consumers
Debt Collectors
Utility providers
Affordability Guidelines
Default Listing Guidelines
Adverse Data Amnesty
National Credit
Amendments
This is an example text. Go ahead and replace it with your own text. It is meant to give you a feeling of how the designs looks including text.Factors impacting
Project Evolution
Credit Environment
Definition of Credit
Providers
New Prescription
Rules
Draft National Credit Regulations
Proposed affordability Regulations
Existing Financial means and prospects
Credit Provider assess Income, Discretionary Income Practical steps to validate Gross Income
3 months bank statements 3 months payslips Other similar confirmations
Variance – look at average of past 3 months Consumer obligations to accurately disclose information Consumer to disclose authentic documentation
Draft National Credit Regulations
Proposed affordability Regulations
Existing financial obligations Calculation to be done for new and extension of existing
agreements Use necessary Expense Norms as per table – if variance - declare
as per Scheduled Questionnaire
Monthly Gross Income Min Monthly fix fact Monthly fix fact + % of inc > min
Minimum Maximum
R 0 R 800 R 0 100%
R 800 R 6 250 R 800.00 6.75%
R 6 250 R 25 000 R 1 541.67 9.00%
R 25 000 R 50 000 R 3 375.00 8.20%
R 50 000 Unlimited R 5 425.00 6.75%
How are we going to verify the data?
Prescription data impact
Prescription data impact
Summary of NCAA prescription No collection on Prescribed Debt No selling of Prescribed Debt No re-activation of Prescribed Debt
Major challenge – Prescription interrupters not historically recorded Effective date of NCAA Application ito NCAA – limited to only Credit Agreements / data on credit
bureaux Municipalities inside or outside NCA? Amendment to existing Prescription Act wrt other debt? Education of Consumers?
Prescription data impact
Prescription data impact cont
To consider impact on data retention: Prescription Interrupters
Tacid or Express Acknowledgement of debt Telephonic vs written – tracking and proof Section 58 / 57 signed – tracking and proof Debt Counselling application – tracking and proof Debit order instruction – tracking and proof PTP – tracking and proof
Prescription delays - Consumer outside SA – 1 year after returning to SA – tracking of consumers outside SA and trigger on return
Tracking above against the account / debt Period to retain data – storage space budgetary impacts Date time stamping and storage for retrieval
Prescription data impact
How are we going to Identify prescribed debt?
Completeness of Data
Missing datasets
Consumer Balance Sheet
Credit Agreements
Other agreements
Living expenses – no agreements
Missing datasets
Missing datasets
Completeness Cross subsidising – household incomes Indigent / SASSA grant recipients
Contact details / Domicilium Updated contact details in collections efforts Changes in Domicilium updates Debt collection success method
Behaviour Debt Collection – behaviour on rehabilitation
Missing datasets
Missing datasets
Income Salary verification Bank statement verification Informal business Maintenance received Income from household - sponsor
Expenses Utilities Taxes Educational fees Medical Insurance Transport – e-toll etc Accommodation Maintenance payments Expense to household - sponsor
Case Study – missing data insights
Local Municipality 1
Local Municipality
# Accounts 35 552
Value of Debtors book R 49 304 151
Local Municipality A
Local Municipality A
Company match CIPC 4%
Government / Public entity 2%
ID Deceased 8%
ID Found 7%
ID Number is valid 64%
Municipal own account 3%
Unable to match 9%
Book analysis on accounts
Body Corporate
Company identified and matched to CIPC
Escalate to Supervisor
Government or Public Entity
Health, School, Religious
ID Deceased
ID Found
ID Number supplied is valid
Multiple ID’s - one chosen
Municipal Own Account
Non-Profit Organisations
Partial Identification to Source Data
Possible Relative
Trust
Unable to Match
Local Municipality A
Company matched CIPC 5%
Government / Pub-lic entity 4%
Health School Re-ligious 4%
ID Deeased 10%
Body Corporate 5%
ID Number sup-plied is valid 53%
Municipal own account 2%
Unable to match 13%
Book analysis on Balance
Body Corporate
Company identified and matched to CIPC
Escalate to Supervisor
Government or Public Entity
Health, School, Religious
ID Deceased
ID Found
ID Number supplied is valid
Multiple ID’s - one chosen
Municipal Own Account
Non-Profit Organisations
Partial Identification to Source Data
Possible Relative
Trust
Unable to Match
Metro Municipality B
Metro Municipality
# Accounts 698 778
Value of Debtors book R 5 013 792 748
Metro Municipality B
Metro Municipality B
Unable to match 3%
ID Found 5%
MM Own account 5%
ID Number 73%
Government / Public entity
2%
Health School Religious 3%
ID Deceased 5%
Book analysis on accounts
Body CorporateMM Own accountMM own account -auto updateCompany Number matched to CIPCCompany Registration FoundEmbassy AccountEscalate to SupervisorGovernment or Public EntityHealth, School , ReligiousID DeceasedID FoundID Number supplied is validMultiple Possible ID's - one chosenLocal Mun 1No-Profit OrganisationPartial identification number to source dataPossible RelativeProperty Owner as per DeedsSupplied Company Name does not match Supplied NumberThe Owner ,Occupant, or no stand numberTrustUnable to Match
Metro Municipality B
Body Corporate 2%
Company match to CIPC 6%
Company Reg found 14%
Government / Public entity 2%
ID Found 5%
ID Supplied is valid 52%
The Owner 2%
Trust 3%
Unable to match 8%
Book analysis on balance
Body CorporateMM own account MM own account -auto updateCompany Number matched to CIPCCompany Registration FoundEmbassy AccountEscalate to SupervisorGovernment or Public EntityHealth, School , ReligiousID DeceasedID FoundID Number supplied is validMultiple Possible ID's - one chosenLocal Mun 1No-Profit OrganisationPartial identification number to source dataPossible RelativeProperty Owner as per DeedsSupplied Company Name does not match Supplied NumberThe Owner ,Occupant, or no stand numberTrustUnable to Match
Metro Municipality B
Focus areas on this book
Description # of accounts Value of book
High focus area 29 354 R36 249 020
Medium focus area 1 994 R5 380 713
Low focus area 4 196 R7 662 818
Other factors to consider
• Status of accounts –active / inactive• Age analysis of accounts – payment recency• Linked accounts• Unidentified owner of account• Organs of state• State employee• Links to supply chain• Links to own employees• Property ownership• Directorships• Company statuses• Credit Balances• Balance to arrears ratio• Rates balance to Property valuation• Organs of state• Municipality own accounts• Indigents – actual vs identified
Burning issues on the table…
DATA• Amnesty• Credit Bureaux • Unregistered Data Providers
COST OF CREDIT• Credit Life Insurance• Interest rates• In Duplum
PROCESSES• Prescribed debt• EAO• Debit Orders• Sect 57, 58• Jurisdictions – Sect 45• Selling repossessed items lower than value
LIMITS• Reckless lending• Affordability assessments• Eligibility for credit
We all need to adjust to be able to reach destination