Information-Led Development (ILD)

Download ILD Trifold

The Problem

• Financial services infrastructure is radically under-developed in many countries, constraining growth in private sector lending and macro-economic growth as a consequence.
• Many countries – developing and emerging economies alike – lack credit reporting systems, making access to credit difficult or impossible for the vast majority.
• The two primary means by which individuals worldwide create wealth are homeownership and small business ownership. For most, this requires credit. Without sound credit reporting, most will remain imprisoned by poverty.
• Many millions in emerging economies live in remote locations with no access to mainstream lenders.
• Subjective and arbitrary standards, anticompetitive practices, and security concerns impede the rollout of financial services infrastructure.

PERC’s Solution

• Bring together parties with harmony of interest in development of financial services infrastructure.
• Institutionalize relationships in context of goaloriented coalition.
• Work with key international organizations – including the IFC, World Bank, and CGAP to promote sound credit reporting practices to facilitate “information led development”.
• Identify and partner with private sector actors and IOs on development of risk modeling solutions to bypass traditional lenders and extend credit to those in remote locations.
• ID and partner with private sector actors and IOs on development of risk modeling solutions for those needing credit but who cannot be served by micro-lenders or by banks and who have too little information to access credit by any means.
• Identify and partner with private sector actors and IOs on development of risk modeling solutions for those needing credit but who cannot be served by micro-lenders or by banks and who have too little information to access credit by any means.

The Roadmap

ILD Year 1 (Jan. 2004 – Dec. 2004)

• Released “How Safe and Secure Is It?” assessing privacy in outsourcing firms in India.
• Hosted conference on Capitol Hill on offshore outsourcing.
• Presented at World Credit Reporting Conference in Beijing.

ILD Year 2 (Jan. 2005 – Dec. 2005)

• Extensive outreach in Australia and New Zealand, led to Parliamentary inquiry in Australia.
• Outreach on credit reporting reform in Japan. ILD Year 3 (Jan. 2006 – Dec. 2006

ILD Year 3 (Jan. 2006 – Dec. 2006)

• Released “On the Impact of Credit Payment Reporting on the Financial Sector and Overall Economic Performance in Japan”.
• Extensive outreach in Japan, Colombia, Guatemala, Honduras, Trinidad and Tobago.
• Presented at Global Credit Reporting conference in Cape Town.
• Extensive outreach in Brazil, China, and Singapore.

ILD Year 4 (Jan. 2008 – Dec. 2008)

• Co-hosted experts conference on credit reporting in China with Peking University in Beijing.
• Formed Asia-Pacific Credit Coalition (APCC) to promote regional credit reporting standards.
• Analyzed commercial credit reporting in South Africa for National Credit Regulator, suggesting means to increase credit access for black- and female-owned businesses.