Derivation of the China Credit Bureau:
The basis for this was UCMS "thin file analysis" (TFA) was developed in the United States to help issuers in situations with limited credit data. Limited credit data situations appeared first when banks sold credit cards to college students. UCMS developed a TFA program ten years before the nearest competitor (Trans Union) and successfully battled the single, largest challenge in credit underwriting: youth credit card accounts.
China faces similar hurdles in that credit information is scarce and scattered. UCMS thin file analysis techniques are to be applied when meshing bank records, cell phone records, housing information, employment data, etc., into a decision making matrix.
The UCMS technique differs greatly from the industry trend / practice shown on page 2. This is a major pitfall that China credit data collection bureaus will face: forcing their citizen credit profiles into a US scoring model (FICO).
"Good artists create. Great artist steal." -Pablo Picasso
Larry Chiang, founder of UCMS in 1989, utilized a
solid-liquid-gas thermodynamics model as the basis for the credit scoring model. It mirrors pressure, volume, temperature, number of molecules and "R". The result is an option for a Debit Reporting Agency (DRA)
Strengthening
Public and Private Credit Registry Ties World Bank 2004 Presentaion in Power Point
