Late payment, the cost of living, and the need to accelerate Companies House reforms are three of the biggest challenges facing credit reference agencies (CRAs) and the wider business information industry at large.
In the March edition of the Credit Management Magazine; Compay Watch CEO, Jo Kettner, speaks about the challenges facing Credit Reference Agencies today and how leveraging data is the key to credit risk management.
Jo points out that we are very likely to see company insolvencies exceed pre-pandemic levels later this year. This is because government support schemes that propped up businesses during lockdowns have begun winding down, and the reality of paying back support debts is starting to bite.
Company Watch's focus is still firmly on helping businesses fully understand and stress test the risks they are taking. Jo explains that transparency and explainability are two of the founding principles of Company Watch. Enabling users to understand the reasons behind financial health scores, along with allowing them to interact and scenario test company accounts, ensures users are able to make evidence-based risk decisions.
Credit Reference Agencies are stepping up to the plate to support the economic recovery, but the industry needs to come together as a whole to drive real change...