Full-File Credit Reporting and Information Sharing Key to Economic Success for Latin America Says TransUnion Study.

CHICAGO -- TransUnion today released a study conducted by the Information Policy Institute (IPI) entitled "The Benefits of Full-File Credit Reporting in Latin America." The study, commissioned by TransUnion, concluded that countries reap considerable economic advantages where there is full-file reporting (positive and negative credit information) and full participation or sharing of information by the financial community.

"TransUnion is committed to the Latin America market. Realizing the benefits credit information brings to the marketplace is key for continued growth," said Ralph Sorice, president of TransUnion International. "We commissioned this study to show that by creating and sustaining an environment where credit information is fully shared among the financial community, economies are able to flourish."

This study reinforces what other research studies have shown in that credit bureaus are key to a well-functioning, modern financial system. The IPI study explored the degree to which differences in the rate of participation by data furnishers in a full-file reporting system have on the financial sector. For example, shifting from 50 percent of data furnishers providing positive and negative information to 100 percent, market size could be expected to double.

Overall, three key elements, according to the study, are necessary for the well being and growth of the financial sector in the region. The primary element was the private ownership of the credit bureau, followed by full-file reporting and widespread participation of data sharing. By adhering to those three key elements, the study noted the following benefits: an increase in consumer lending by up to 45 percent of Gross Domestic Product (GDP); fewer bad risk loans being processed and a far greater number of good risk consumers getting loans; and an increase in the opportunity for women and young adults to be approved for credit.

The study also indicated that an increase in reporting positive payment information lead to a more equitable distribution of credit. In other words, low-risk borrowers were more likely to receive a higher level of credit while high-risk borrowers were limited. Moreover, women and young people are disproportionately hurt when positive payment information is not reported, due largely to those groups having relatively thinner credit files.

"Underdeveloped lending practices are a barrier to growth," said Sorice. "For Latin America in particular and world economies in general, a well functioning system of credit reporting can assist in improving the efficiency of the financial sector, help expand private sector lending to consumers and potentially reduce the chances or impact of financial crises."

The Information Policy Institute, which conducted the study and is based in North Carolina, is part of the Political and Economic Research Council (PERC). PERC is a non-partisan centrist policy institute devoted to research, public education and outreach on public policy matters. Its primary area of focus is related to information policy, credit access and the global information economy.

About TransUnion

TransUnion is a leading global information solutions company that customers trust as a business intelligence partner and commerce facilitator. TransUnion offers a broad range of financial services that enable customers to manage risk and capitalize on market opportunities. The company uses advanced technology coupled with extensive analytical capabilities to combat fraud and facilitate credit transactions between businesses and consumers across multiple markets. Founded in 1968, Chicago-based TransUnion employs 4,100 associates that support clients in more than 30 countries. Visit us at TransUnion.com.

Graphics and/or photographs to accompany this release can be obtained by members of the media by contacting Mike Brandfon ([e-mail]) at 312-985-2779 or Cliff O'Neal ([e-mail]) at 312-985-2540.