CreditXpressCOMPUSCAN NEWS RESOURCE

Compuscan | 0861 51 41 31 | Fax : 021 413 2424 | www.compuscan.co.za

MFSA research identifies immense market opportunities for microfinance

Women under 30 play the property game

Compuscan Academy furthers its African expansion

Credit Check provides direct online and offline access to one

of the most comprehensive credit bureau databases managed by

Compuscan.

CREDIT CHECK

Proloan provides you with a complete loan servicing, management, tracking and collection software platform.

PROLOAN

Xcelerator automates credit application processing by

employing workflow techniques to control and monitor the different steps in the application process.

XCELERATOR

Codix makes credit decisions for you. It takes your specific business rules for each loan

product into account and gives you recommended actions for each of your loan products.

CODIX

CompuWatch is a real-time alert service which flags at-risk borrowers so that you can act

quickly to prevent loss before you are exposed to it.

COMPUWATCH

CompuScore ABC is a leading edge suite of credit bureau scores

which predicts the probability of customer default throughout the

credit life-cycle.

COMPUSCORE ABC

We offer integrated solutions for customer and employee

identification and verification in the form of biometric applications.

BIOMETRIXCompuscan Academy is a skills

development and training provider which delivers accredited generic or customised training services to the corporate industry of South Africa.

TRAINING

Compuscan can help you identify the best target market

with an acceptable credit profile to maximise the return on your

marketing spend.

MARKETING

With Compuscan’s up-to-date consumer contact information and powerful trace/alert tools, you can take immediate action by tracing, monitoring and locating debtors

quickly.

TRACE SERVICESProlinx is a loan origination

portal that links credit providers via points of origination with the end-customer in a formal and

controlled manner using a web based system.

PROLINX

We offer scoring and analytics consultancy including expert

advice on predictive modelling to enhance decision-making,

marketing effectiveness and risk management.

CONSULTANCY

BIZINFORMWe provide quality business

information to assist our clients in making accurate and informed business, marketing and credit

decisions.

CONTACT US FOR MORE INFORMATION

If you have any questions about our solutions or services, please contact us today on 0860 51 41 31 or 021 888 6000.

www.compuscan.co.za | www.compuscanacademy.co.za | www.scoresharp.co.za | www.prolinx.co.za

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Steve Jobs once said, “Innovation distinguishes between a leader and a follower”. This statement highlights the core reason I believe Compuscan is a leader in its field. As one of our core values, innovation is a driving force and fundamental standard which determines how we deliver our products and services. In the past four months we have brought forward one of our most innovative products to date, Codix Lite, for the smaller unsecured loan providers. We have also spent extensive time piloting CompuLoan and look forward to introducing it to clients later in the year. Our data will also see itself strengthened with the addition of business credit information which is currently being integrated into our system.

I hope that, like me, you look forward to what the duration of 2012 holds and to our sustained working relationship. I thank you again for your patronage and continued support and guarantee you of our commitment and continued innovation.

Warmest Regards, Remo Lenisa

>> IN THIS EDITION

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MFSA RESEARCH identifies immense market opportunities for microfinance.

EMPOWER A COMMUNITY TODAY by nominating a community for a workshop.

WOMEN UNDER 30 play the property game.

COMPUSCAN EDUCATES DEPARTMENT OF LABOUR employees on their credit health.

DEBT COUNSELLING training in need of serious restructuring according to research.

UGANDA’S FIRST EVER CREDIT SCORE was recently launched.

ASK JACO: our IT director provides industry insight.

AMMENDMENTS regarding Section 129 letter delivery.

BIOMETRIX: trusted security.

HOW MENTORSHIPS BUILD LEADERS: the key to success.

THE EVOLUTION OF CREDIT SCORING and how far we have come.

GOING GREEN: Compuscan’s head office sets the example.

COMPUSCAN ACADEMY furthers its African expansion.

>> MESSAGE FROM THE CEO

>> CONTACT DETAILS

ADDRESS: Compuscan House, 3 Neutron Avenue, Techno Park, Stellenbosch, 7600

POSTAL ADDRESS: P.O. Box 1028, Stellenbosch, 7599 NATIONAL NUMBER: 0861 51 41 31

TELEPHONE NUMBER: +27 21 888 6000 FAX NUMBER: +27 21 413 2424

EMAIL ADDRESS: info@compuscan.co.za WEBSITE: www.compuscan.co.za

Compuscan is a registered credit bureau in terms of the National Credit Act (NCA). NCR NUMBER: NCRCB6

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Perhaps one of the greatest opportunities that the research underlined was the need for microlenders to offer an all-in-one lending solution. When asked

what respondents were most likely to use their loans for, the most popular responses were: education financing, business opportunities, consolidation of loans, home/personal improvements, luxuries and emergencies. In light of this, it seems evident that microlenders who offer products or services which address several client needs would have an advantage over others. These products could include lending solutions targeted at small business funding, risk management, education funding, insurance or even emergency and funeral funding.

Apart from looking at how borrowers utilise their loans, the research also focused on public perception of both finance houses (unsecured non-bank credit providers) and banks, and identified where microlenders can place their focus to ensure they are the preferential choice. Most importantly, banks were identified as being strict and unwavering while finance houses were perceived to be flexible in their terms and conditions. It is this flexibility and ability to give individual attention which microlenders should see as an opportunity to set themselves apart from banking institutions.

Interestingly, focus group respondents also highlighted flexibility as a key reason for remaining at a particular finance house as it was perceived to be an indication of good customer service. In addition, the formation of strong, long-lasting relationships based on an understanding of clients’ needs was seen to encourage loyalty to one credit provider. Here again, smaller microlenders often have the advantage of being able to form personal relationships with clients more easily than larger institutions.

The research also looked at one of the main reasons consumers look to the traits of good customer service, flexibility and established relationships when selecting a credit provider - namely because these are the elements they will rely on during times of stress. Defaulters present in the focus groups indicated that they tended to default on repayments, not necessarily as a result of poor debt management but rather due to loss of income or employment and because, during these times, flexibility on the part of the credit provider was essential. The concept that several borrowers apply for loans as a result of desperation points to the need for microlenders to strive for openness and flexibility and to accommodate borrowers, where possible, in challenging situations.

Apart from the traits mentioned above, the research also identified other factors which research respondents named as being pivotal in selecting a credit provider. These included: minimum documentation requirements, no waiting period for approval, loans paid out immediately and fixed interest rates.

The research also indicates that the awareness level of credit providers registered with MicroFinance South Africa or the National Credit Regulator is low. Although clients realise the necessity and importance of credit providers to be registered with both bodies, this is currently not a key driver for choosing a credit provider. Clients are typically accessing funds for emergencies and tend to be desperate. Consumers thus consider registration or non-registration to be less important in the scheme of their needs and as a result continue to approach “loan sharks” for loans despite their knowledge of the risks associated with them.

This instant need for cash in times of desperation is often the main reason why respondents indicated that they still made use of “loan sharks” or “mashonisas”. Ultimately, as a result of the stringent terms and conditions of credit providers and strong relationships formed with “mashonisas” in the community, several respondents ended up returning to them in times of need. To ensure that they counteract this, microlenders need to promote themselves as a dependable source that consumers can turn to in times of desperation and emergencies for quick and efficient assistance.

MicroFinance South Africa (MFSA) recently conducted research into the behaviours displayed by credit providers and consumers in the lending industry. The research, which provides valuable insight for credit providers, not only identifies current trends and perceptions held by consumers, but also highlights a wealth of opportunities for those in the microfinance arena.

It is their flexibility and ability to give individual attention which microlenders should see as an opportunity to set themselves apart from banking institutions.

Last year, Compuscan Academy hosted free Money Management Workshops for over 100 individuals in communities across South Africa. This year, however, we are asking you to help us reach even more communities in need by nominating a community that you believe will benefit from the financial insight provided during these workshops.

In the words of Nelson Mandela: “Education is the most powerful weapon which you can use to change the world.” At Compuscan Academy we share this vision and believe that through education we can equip communities with the skills to make informed decisions and improve their current living conditions.

It is with this belief in mind that Compuscan Academy launched its Money Management Workshops last year and with which we hope to equip individuals with vital money management and credit knowledge again this year.

The workshops are based on a uniquely designed training programme intended to increase the overall credit and financial literacy of individuals to help them steer clear of the pitfalls of debt. Workshop goers are exposed to budgeting and credit advice which will assist them to maintain sustained financial independence and credit health. In addition, individuals learn vital savings techniques which will assist in directing them towards a secure financial future.

At all workshops, attendees are given the opportunity to receive a free copy of their credit report, provided they bring their ID documents along. On their credit report attendees can see their current creditworthiness status and are provided with critical information on how to improve their credit status to gain access to credit in times of need. Furthermore, the report makes individuals aware of their credit history and how paying their accounts on time can be used to their advantage.In South Africa, where there is an unemployment rate of over 23% and where over 8.93 million consumers have an impaired credit record (Credit Bureau Monitor, National Credit Regulator December 2011), Compuscan Academy believes that financial literacy is the first step to changing the future of our country and with it doing our bit to bring vision to the words of Nelson Mandela and change the world.

To nominate a community, please contact Compuscan Academy on info@compuscanacademy.co.za or call 021 888 6000. You can also visit our website www.compuscanacademy.co.za

However, in today’s competitive environment, even if you offer superior customer service, flexibility, personal attention and efficient loan processing – this means nothing if your target market isn’t aware of it. You need to ensure that you are utilising the correct channels for advertising to reach your intended audience. When asked which channels they make use of to gather information on credit providers, the respondents pointed to newspaper, the Daily Sun as their main source. Second on the list was word of mouth – again pointing to the importance of having high customer service levels and strongly formed relationships. Other sources consumers indicated they turn to for information on credit providers include: pamphlets, television, radio and commuter advertising. It is worth noting that the internet does not feature on this list, indicating that perhaps for microlenders, this should not be their sole reliance for marketing purposes.

Ultimately, the research indicates that those in the microfinance arena should focus on offering high levels of customer service supported by flexibility and timeous and efficient loan applications to ensure customer satisfaction. They should also investigate opportunities to offer a one-stop-shop solution to cater to individual needs and focus on delivering services that appeal to those requiring a loan during emergencies. Ensuring that you are marketing and advertising through the most effective channels is also essential to ensure you are reaching your target market and positioning yourself as a front runner in the industry. As competition in the industry increases, one cannot overlook any opportunity to secure clients and by understanding consumer behaviour and taking note of possible opportunities, microlenders can position themselves as the preferred source in the lending arena.

The research above was conducted by the MFSA and findings were based on six focus groups conducted in both Gauteng and the Eastern Cape across both male and female black South Africans, aged 25 -65 and from LSM’s 3 to 8. The groups also included both defaulters and those that held current loans at banks and other finance houses (both MFSA registered and non-registered unsecured non-bank credit providers).

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Today’s average twenty-something year old woman can be described as ambitious, independent and apparently, property focused. This is according to research recently compiled by Compuscan for its quarterly synoptic report, which indicates that women under the age of 30 were granted more mortgages than men in the same age bracket in the quarter ending March 2012.

This is particularly true for mortgages between R1 million and R3 million where 57% of mortgages granted to those under the age of 30 went to women. For mortgages under R1 million this figure drops to 54%, still placing women in the lead.

The same trend can also be seen in the 30 to 39 age group where more mortgages were granted to women for under R300 000. However, in this age group, a noticeable shift occurs as the mortgage value increases and for mortgages over R300 000 men overtake women, albeit slightly, in the number of mortgages granted.

From the above data it would appear that a sudden shift occurs in the 40 to 49 age group where, irrespective of the size of the mortgage, more men were granted mortgages. In fact, according to the research, the majority of mortgages granted for the quarter were to men in the age bracket of 40 to 49.

Compuscan data analyst, Jacobus Eksteen, confirmed these findings by stating that “the binomial hypothesis test confirms with more than 99.99% certainty that the difference between the percentage men and women for the different mortgages amounts and ages is statistically significant.” Thus, while women dominate in the lower age brackets and lower mortgage balances, this trend undergoes a significant shift in the higher age brackets and higher mortgage balances where men take the lead.

This noticeable shift could be attributed to a number of factors – one of which may be due to the salary gap between men and women. A survey conducted by WageIndicator in November 2011 indicated that women under the age of 25 are paid 15% less than their male counterparts. This value increased to 25% in the age category of 35 to 50 and furthermore to 27% for those over 50 years of age. This gradual increase in the discrepancy between men and women’s salaries in the middle-age group may account for why more men are granted mortgages in this age bracket.

The shift could also be attributed to the fact that more and more women are choosing to boycott the traditional roles of motherhood until their mid- to late-thirties and then re-enter the job market after they have raised their children. This “break” in their experience can significantly affect their career progression as well as their chances of being promoted to higher paying positions in middle-age.

Although the above reasoning seems plausible, the shift may in fact not be the result of external influences but rather due to a change in the mind-set of today’s young women. It is no doubt that modern young women differ vastly from their predecessors in terms of career focus and values. They have been raised to be independent, self-reliant and above all, equal to their male counterparts, with many women choosing to place career ambitions over motherhood. This new-age breed of independent woman is also more likely to be self-reliant and deviate from the typically prescribed norms which dictate that the purchasing of a home be a man’s role. Could it thus be possible that more mortgages were granted to women under the age of 30 as a result of the birth of the new-age woman? And, more importantly, if this is the case, will we eventually see women overtaking men across all age brackets in the property market as these independent thinkers enter middle-age.

Only time will tell.

Women under the age of 30 were granted more mortgages than men in the same age bracket.

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Compuscan representatives used the opportunity to address the crowd and explain the workings of a credit bureau and a credit report. Attendees were also given the opportunity to receive their free credit report which was then explained to them in detail. With this information in hand, individuals are better equipped to escape the pitfalls of debt and manage their finances.

In addition, Compuscan handed out an information booklet to attendees which thoroughly explained frequently asked questions regarding credit bureaus, credit reports, disputes, identity fraud and the National Credit Act.

Compuscan sees it as its duty to educate individuals on the importance of a healthy credit report and equip them with necessary information so that they can better manage their debt.

The Department of Labour held a Debt Awareness Day on 22 and 23 February 2012 which saw over 1 000 employees receive information on how to manage their finances.

After conducting an intensive study on the debt counselling landscape of South Africa, Compuscan

Academy has released results indicating the competency requirements and skills needs of South

African debt counsellors. The study further highlights those areas where intensive and urgent training

is needed and offers recommendations regarding the future training of debt counsellors.

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The debt counselling profession is a relatively new occupation introduced by the National Credit Act (No.34 of 2005) in 2007 to provide assistance to the many over-indebted consumers of South Africa. Ultimately, debt counsellors are tasked

with assisting consumers by reviewing their indebtedness and making recommendations regarding the restructuring of the consumer’s debt in a way that will help them to rise out of the debt trap which they find themselves in.

Currently there are over 2 000 debt counsellors registered with the National Credit Regulator (NCR), however, of these it is estimated that less than 1 000 are still practicing.

Since its inception, the profession has been plagued with challenges and obstacles which have hindered the successful performance of today’s debt counsellors. In particular, a focus has been placed on the current levels of competence of debt counsellors and the requirements regarding education, competence and experience as laid out in legislation and the National Credit Regulations.

The study itself comprised of two phases – the first was to establish the competency requirements of debt counsellors via a task and competency analysis based on interviews with key stakeholders and a review of industry documentation. The second phase involved conducting a skills needs analysis and was aimed at collecting and analysing data on the skills needs of debt counsellors to develop a competency framework comprising various skills related and knowledge competency areas. A competency framework is an outline of key competencies required for a specific occupation or job and more specifically the knowledge, skills, personality and characteristics which underline them.

From the analysis of the results it was concluded that the most important or critical competencies for debt counsellors are attention to detail, professional integrity, knowledge of credit legislation, regulations and laws, debt assessment interviewing, financial and over indebtedness assessment, problem solving and analytical thinking, managing personal finance and knowledge of the debt counselling industry. More than 80% of respondents indicated these competencies as the most important for the performance of debt counselling related tasks.

In addition, the study also examined in which areas debt counsellors feel there is an urgent need for further training or skills development. According to the study, the top five competencies which are viewed by debt counsellors to require the most urgent training are: consumer protection; credit legislations, regulations and laws; debt counselling related declaratory orders, rules, guidelines and codes of conduct; legal representations and consumer education and counselling.

Another concern which arose from the study surrounds the duration of the current debt counselling training programme. Respondents indicated that the course is too short and that more time should be devoted to debt counselling courses which should be extended to 6 or 12 months. It was also suggested by respondents that the format of debt counselling courses be changed to a certificate or diploma.

Another concern raised focuses on the lack of practical training included in the current debt counselling programme. Respondents claim that the course is too theory based and should include more practical learning activities and case studies or perhaps be combined with a mentorship or internship programme. It is therefore suggested that the course includes a three to six month internship with an NCR approved debt counsellor or that training be supplemented with on-the-job coaching and mentoring or alternatively with simulated role play learning that provides prospective debt counsellors with an opportunity to practice the skills in a controlled environment. Likewise, more workshops and continuous professional development interventions are required to address debt counsellors’ skills and training needs.

It is hoped that the findings of this study can be used for the design and development of an occupational curriculum to contribute to the debt counselling profession and the industry at large. Ultimately, with the insight on what current debt counsellors and industry experts regard as critical competencies for the performance of debt counselling tasks, a benchmark can be established for targeted skills training for debt counsellors as well as for the development of an occupational profile and qualification curriculum for these professionals.

This research was conducted by Cindee Groenewald (General Manager: Compuscan Academy) as part of her MBA dissertation to determine the competency requirements and skills needs of debt counsellors.

As a reputable international credit bureau, headquartered in South Africa, Compuscan believes that credit scoring and credit automation are fast becoming the best methods to increase

wallet spend responsibly with a customer, in a quick and reliable way. Since being selected by Bank of Uganda to establish Uganda’s first credit reference bureau, it has been Compuscan’s goal to bring credit scoring fundamentals to the country. In light of this, Compuscan is very proud to have achieved this milestone.

According to Mike Malan, Managing Director of Compuscan Uganda, credit scoring tools and technologies enable a lender to acutely maximise lending to creditworthy customers and swiftly identify high risk customers through statistical methodologies of understanding how borrowers have previously paid. These credit scoring models are then used to predict likely outcomes of applicant borrowers meeting future repayment commitments.

CompuScore was developed in conjunction with ScoreSharp, an innovative risk management consultancy with whom Compuscan merged last year, and the Ugandan credit scorecard development is a true testament to the value of this partnership. Compuscan is exceptionally proud of the immense time and effort ScoreSharp invested in the creation of this outstanding product which is sure to yet again revolutionise the lending industry of Uganda.

The Ugandan CompuScore was developed to predict the probability of a serious default event (i.e. 90+ days past due, doubtful, loss or write-off) occurring within 12 months of an account opening. During the development of the scorecard, all data on loan applications and loan repayments stored by Compuscan was used to model how people are likely to handle new debt or manage existing debt obligations. Two

models have been developed for the Uganda CompuScore to cater for both the customer that has borrowed previously and for the new-to-book customer who has never borrowed before (or whose data has not been made available).

Paul Andrews, Director of ScoreSharp and Principal Analyst, discussed the breakdown of the predictiveness of the models and stated: “CompuScore Uganda is remarkably strong as a first generation scorecard.” He attributes this to the richness of data that is being reported to the credit bureau. Without good quality data, credit scoring cannot occur and cannot be used as a key pillar to fast track credit issuance. But with the correct principles and data foundations, such as those that have been put in place in Uganda, credit issuance is not only fast-tracked, but strengthened. Andrews continued to say: “These risk models are very predictive and with the correct ongoing attention to data quality they will continue to be very predictive.”

According to Malan, the next stage will be to ensure that each financial institution in Uganda can maximise its risk offerings with more focussed strategies by using credit scores to their advantage. Credit scores are more than a credit tool to measure risk, they are a way for lenders to grant credit quickly, objectively and within a controlled appetite for risk.

To maximise the benefits of implementing CompuScore, Compuscan will undertake a detailed customised calibration project with each credit provider, whereby the performance of the score suite on a credit granter’s own customers can be measured and suitable strategies defined. Compuscan looks forward to working with its customers during this process and to the immense benefits that the scorecard will hold for them.

Compuscan was proud to launch Uganda’s first credit bureau based scorecard,

CompuScore, on 8 December 2011. The event took place at the Emin Pasha Hotel,

Kampala, and was attended by the Governor: Bank of Uganda, as well as by several

CEOs and bank officials of regulated financial sector institutions in Uganda. Various

members of the broader financial sector stakeholder community were also in attendance.

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In June 2012, the Constitutional Court clarified the requirementssurrounding the delivery of the notice that a credit provider mustgive to a consumer or debtor, in the event of default, (the section129) letter as required by the National Credit Act (“the NCA”).

In terms of section 129, in conjunction with section 130 of the NCA, a credit provider must provide consumers with a notice in which the consumer is advised about their right to refer the creditagreement to a debt counsellor, alternative dispute resolution agent, consumer court, or ombud to resolve any dispute under the agreement, before taking legal proceedings to recover debts.

As per the Rossouw case, the court was again faced with the question of whether the NCA requires the consumer to actually receive the section 129 letter, or whether it is sufficient for the credit provider to send the letter to the consumer’s chosen address or draw the consumer’s attention to the default of the credit agreement. Although the Rossouw case merely required the proof from the credit provider that it did send the letter, the Sebola case went further to state that actual delivery is required.In Sebola v Standard Bank, Mr and Mrs Sebola entered into a home loan agreement with Standard Bank. The agreement allowed for notices to be sent to an address chosen by the Sebolas. When they defaulted on their home loan, Standard Bank sent a section 129 letter by registered post to the selectedaddress. The letter was, however, delivered to the wrong post office and the Sebolas never received the letter. Standard Bank proceeded by taking judgement against the Sebolas and obtained a warrant of execution against the property.

During a High Court application for rescission (where it was established that the Sebolas did not receive the notice), the court rejected the argument which stated that the NCA does notrequire actual delivery of the section 129 letter. The High Court held that it was sufficient for the credit provider to show that it had sent the notice to the consumer’s chosen address – the credit provider need not show that the consumer actually received thenotice. The Sebolas took the matter to the Constitutional Court and argued that the NCA must be constitutionally interpreted to give effect to the protections envisioned therein.

Judge Cameron ruled that the credit provider must be able to prove that the notice has been delivered to the consumer. This can be done by proving that the letter was sent by registered mail to the consumer’s address and that the notice reached the appropriate post office for delivery to the consumer. If the creditprovider cannot prove the above, the credit provider cannot execute against the property until it has met the requirements of the act.

This means that in future credit providers must be able to show that they have sent the letter by registered mail as well as that it has obtained a track and trace printout from the post office to show that the letter was indeed delivered to the correct post office.

Jaco Alberts, IT Director of Compuscan, shares some industry insights with us.

How do we ensure that our data and technological resources are protected against hacking, viruses or other compromises?

Compuscan makes use of state-of-the-art anti-virus software and firewalls to guarantee intrusion prevention and eliminate the threat of viruses and hacking. Likewise, our email system provides comprehensive spam protection and ensures that every email being sent and received is scanned for a possible threat. To provide protection to our servers we make use of Linux based systems and segment our network infrastructure. We also run intrusion prevention systems on all our machines and wherever possible make use of secure protocols.

How much of an impact will tablets or cell phones and other portable devices have in our industry going forward?

It is my belief that the manner in which credit is granted will remain largely unaffected. That said, mobile devices will still have a significant impact on how credit providers engage with and market to consumers by providing instant access to information. It also allows businesses to interact with consumers via social media platforms. Likewise, just as the sms has assisted with the debt recovery process so too mobile devices and access to online banking applications will make repayments more convenient for the consumer, hopefully decreasing default rates.

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Some of the most notorious cases of fraud and identity theft were carried out by Frank Abagnale, a mastermind criminal who took on various personas in the professional world over a period of several

years. Aside from more petty fraudulent activities, Frank managed to pose as a co-pilot for Pan American Airlines by forging a pilot’s ID and FAA license; as a paediatrician at a hospital in Atlanta, Georgia; and as a supposed Harvard graduate attorney. Of course, he was not qualified as any of the aforementioned professions but succeeded in fooling many and made it past any security or identification verification systems that were in place. Strangely enough, the success of his well thought out schemes lead to his booming career with the FBI after doing time in prison in France, Sweden and the United States.

Although Frank’s story turns out for the better, not all fraudsters’ stories do; and the turn Frank’s story took does not eliminate the damage done during his fraudulent years either. The unnerving reality of criminal activity puts you and your business at a huge risk, especially when the security systems you have in place stand the chance of being circumvented.

Furthermore, with the development of technology and the expansion of the web, more information is readily available to internet users and so the chance of fraud and online identity theft also increases. Breaching security can result in devastating financial consequences, amongst other negative outcomes. For this reason, your absolute confidence in the security systems you choose to implement is not only desirable, but is essential for your business and your customers, particularly in the credit industry.

The solution to smarter security measures lies in Biometrix – Compuscan’s biometric identification solution. As a leading credit bureau, Compuscan knows the importance of having the most effective security system in place. As a result of our industry related knowledge we can confidently put forward Biometrix as the recommended solution.

Biometrics systems make use of DNA specific characteristics, such as fingerprints, to verify a person’s identity and, based on this information, will grant or deny access to a given system or place. The notion of biometrics dates back to a time long before the identification systems we know today came into being. Evidence suggests that, in years as early as 500 B.C., fingerprints were used as a means of identification. The implementation of biometrics as a modern day security measure, therefore, draws from the historical use of a person’s unique physical

characteristics determined by their DNA as an identification recognition system. This foundation, combined with the superb development of technology in this domain allows for a security system of the highest standards.

Biometrix gives assurance that access to finance granted solely to the correct people is asserted. This builds up levels of confidence and trust within your business as well as with your customers who are using the system.

The system does not require pin codes. The lack thereof makes using the security system easier for employees and customers as the pin does not need to be stored or remembered. Eliminating the risk of the pin code being found and used dishonestly by somebody else also means a greater level of security can be maintained.

The best possible solution to overcoming fraud and identity theft can be guaranteed by Biometrix. By installing the Biometrix system, you can remain confident that even the most ingenious schemes like those of Frank Abagnale will not succeed against this security system. Contact Compuscan and find out how you can implement Biometrix in your business.

In the past, individuals would learn skills and gain knowledge through training, education and experience. However, in today’s fast paced environment, companies

need staff to learn and have the knowledge that comes with experience quickly. They also need to know that the education and knowledge that the individual is gaining is not simply “book knowledge” but that it can be practically applied to their everyday work tasks.

In order to solve the above dilemma and develop high-potential individuals, organisations need to provide them with a firm educational base offering knowledge that can be practically applied to their workplace position and the support necessary when they are pushed out of their comfort zone. By encouraging mentorships, this can be achieved and organisations can suitably groom and develop the talent of future leaders.

When implementing a mentorship programme within the workplace, keep in mind that mentorship is not management. Mentorship is a relationship between two people who have a shared vocational connection. A mentor should be someone who has travelled the same path as the mentee and can thus offer valuable insight and experience regarding the challenges the mentee is facing. The entire relationship should be focused around the transfer of knowledge from a more experienced individual to a less experienced individual.

The benefits of mentorship are plentiful and ultimately have a significant effect on how the individual overcomes challenges and handles new situations. Through mentorship the mentee will feel a sense of individual recognition, encouragement and support. He/she will also feel an increased sense of self-esteem when faced with challenges and have the confidence to challenge him/herself, achieve goals and explore new possibilities. He/she will also receive a realistic perspective of the workplace and a proper understanding of how to handle

problematic issues. Ultimately mentoring empowers employees by serving as a learning tool.

Perhaps one of the greatest advantages of mentorship lies in the contribution it makes to succession planning. Often, companies struggle to develop their upcoming leadership pool as staff are simply too busy to be sent on training and too vital to be taken out of the workplace. In addition – no training can replace the wealth of knowledge that comes with experience. In order to ensure the company does not suffer when a senior role is left open, it is essential that the experience accumulated by senior individuals is transferred onto future leaders. Mentorship is one of the most successful ways to ensure this happens successfully. There is a wealth of knowledge and talent in any organisation and the challenge is to tap into this and make it available to others within the company who need it.

To develop a successful mentoring and succession planning programme you need to start by identifying key individuals who possess the skills and potential to take up future leadership roles. You then need to identify mentors who are respected leaders within the organisation. Avoid a mentoring relationship between supervisors and subordinates if possible. The next step is to define a time period and set up evaluations with each individual separately to ensure the mentorship is progressing suitably.

The key to a company’s long term success is often a well implemented succession plan and the cultivation of leadership potential. When mentorship programmes become ingrained in a company’s values, they can be sure that they are building the best possible future for themselves and their future leaders.

For more insightful articles on how to strengthen your business, visit Compuscan Academy’s press room.

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Over the past two decades, credit scoring has transformed how lenders analyse credit applicants and make lending decisions. With the use of credit scoring suites and automated decisioning tools, lenders have not only completely eradicated the manual task associated with application analysis but have also reached a pinnacle in decision accuracy and consistency. In the past year alone, technological advancements have resulted in a generation of credit scoring tools that have changed the course of lending history and with it, the future of microfinance.

Perhaps the most significant reason for credit scoring’s dramatic progression lies with the significant advances to the quantity and quality of credit bureau data. Forming the foundation of credit scoring, comprehensive updated databases have allowed for the accuracy of scoring to reach unparalleled heights. By combining CPA and NLR payment data with enquiries, collections, administration orders, debt restructuring, public adverse data and most recently business credit data, credit providers can be confident of the predictive nature of scoring tools.

With the firm foundation of comprehensive credit bureau data, credit scoring has been taken to a new level which has allowed for its application to be expanded across the entire credit life cycle. While scoring tools were originally used to assess credit risk at the inception of a credit agreement, advances in the application of credit risk models have made them a key tool in the management of risk across the entire credit life-cycle. By making use of behavioural scoring, such as Compuscan’s CompuScore B, credit providers can monitor when changes to a borrower’s circumstances affect their risk profile, thus allowing them to predict ongoing default risk.

Furthermore, collections management has also been drastically affected by advances in the field of credit scoring. By implementing collections scoring, such as CompuScore C, credit providers can predict the probability of receiving payment on overdue accounts. This assists credit providers to expedite the collections process and be alerted to high risk borrowers so that they can act accordingly.

In addition to the above technological advancements, automated decisioning tools such as Codix which integrate with scoring modules to provide an automated credit decision have also dramatically changed the face of the lending landscape. By taking the specific rules for each loan product into account, including an individual’s credit bureau score, Codix can instantly and consistently offer a recommendation as to whether to accept or decline an applicant. Perhaps most intriguing is the most recent development in this field which has had a dramatic impact on microfinance lending and which is sure to change the landscape for smaller or emerging unsecured loan providers.

While implementing automated decision making tools has become an integrated and essential aspect of credit granting for larger more established credit providers over the past few years, the smaller unsecured loan provider has not been able to enjoy the same benefits due to cost issues. This has all changed with the launch of Compuscan’s latest product offering, Codix Lite. Codix Lite, the pinnacle of advancement in the field of credit scoring, offers an affordable credit scoring solution for smaller unsecured loan providers. As it is specifically designed to cater to the smaller organisation, it is not only cost effective but also quick to set up and put into production. Guaranteed to revolutionise credit granting in the micro-lending sphere, emerging organisations can now experience the same consistent and accurate decisions, once only experienced by the larger more established organisation. In the past 20 years, credit scoring has come a long way and as such has revolutionised the lending landscape. However, the largest strides have most certainly taken place within the past 5 years with automated decision making tools for micro-lending, such as Codix Lite, perhaps being the most significant of all. With credit risk now being higher up on the agenda of senior management in micro-finance than ever before, these advancements have altered the entire face of credit granting. Only time will tell what direction technological advancements will take and how it will affect the future of microlending.

Compuscan’s Head Office in Stellenbosch is currently taking small steps to become a more eco-friendly business. Staff, who are already vigilant about turning off the computers in the evening, monitoring the air-conditioning in cooler months and implementing energy saving light bulbs across the building, are now also looking to recycling to make a difference. Colour-coded recycling bins have been set up within the building to ensure that all tins, aluminium, glass and paper are constantly recycled. Compuscan firmly believes that if we all take small steps to a brighter future we can make an impact and, in the words of Mahatma Gandhi, be the change we wish to see in the world.

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It is with immense pride and excitement that Compuscan Academy announces its latest venture on the African continent with its expansion into Rwanda. This venture comes after Compuscan Academy was selected by the Government of Rwanda’s Competitiveness and Enterprise Development Project (CEDP) to deliver relevant credit skills training programmes which focus on both individual entrepreneur financing and Small and Medium Enterprise (SME) financing.

At the opening ceremony of the Financial Sector Individual Entrepreneur and Small Medium and Micro Enterprises (SMME) Credit Knowledge Expansion Training Programme held at the Umubano Hotel in Kigali, Mike Malan (Managing Director of Compuscan) expressed Compuscan Academy’s enthusiasm and privilege at being selected as training provider. “We specifically look forward to building the capacity of your institutions through suitable skills

development initiatives aimed at meeting the needs of the financial industry,” said Malan.

The training programme offered by Compuscan Academy is divided into two separate course programmes aimed at both credit officers and risk managers of banks and microfinance companies in Rwanda. It is hoped that this training will equip credit professionals with the ability to make sound lending decisions thus increasing access to credit for both the unbanked and under-banked while also reducing risk and loss for credit providers. Likewise, it is envisioned that the training will have a similar effect in Rwanda to that of comparable training which has taken place in South Africa and will see an improvement in the credibility of the microfinance sector.

It is our vision that, together with the African Development Bank Group, Compuscan Academy can transform the lending environment in Rwanda and drive the financial economy of the country to new heights.

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Whether you are an individual wishing to enter the credit environment or are already actively engaged in credit management, consider enrolling for the ICM Certificate in Credit Management at Compuscan Academy.

At Compuscan Academy, you can be assured that you are receiving quality accredited training of the highest standard.

Compuscan Academy is a skills development and training provider offering generic and customised training services to the corporate industry of South Africa.

Contact Compuscan Academy on 021 888 6000 or info@compuscanacademy.co.za.www.compuscanacademy.co.za

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