Access to finance is an essential component of economic development and job creation. A host of studies have shown a positive correlation between financial development and economic growth. Access to finance is also critical for larger corporations and conglomerates, which, given their size, performance, and assets, typically meet funding requirements through capital markets and other sources. Credit reporting systems are less relevant for these businesses, as lenders to these large entities rely on a variety of other sources of information when making credit-related decisions. This Guide focuses therefore more on the credit needs of individuals and of the micro, small, and medium businesses that stand to benefit most from the development of credit reporting systems. The report is arranged as follows: Chapter 1 introduces key concepts in credit reporting; Chapter 2 introduces the different types of credit reporting service providers (CRSPs) that collect information on borrowers’ credit histories from creditors and available public sources; Chapter 3 covers the evolution of the credit reporting industry to today, including key trends now emerging and external trends affecting its development; Chapter 4 outlines the legal and regulatory framework options for credit reporting systems; Chapter 5 summarizes the World Bank Group’s fifteen plus years of experience in developing credit bureaus and credit registries around the world; Chapter 6 presents an overview of the value-added services typically offered by established credit bureaus through the repurposing of algorithms and data and the products and services offered by commercial credit reporting companies; and Chapter 7 rounds out the theoretical discussions and practical guidelines with nine case studies of recent developments in credit reporting spanning the globe. 

This third edition of the Guide, in the spirit of the earlier two editions, continues to disseminate knowledge on best practices in credit reporting development, based on the experiences of the World Bank Group. This edition has a greater emphasis on credit reporting for businesses, the impact of new technologies and data on credit reporting, and the development of new products and services catering specifically to the needs of users and borrowers. In discussing how the credit reporting arena is adapting to a rapidly changing technological and fintech environment, the Guide also aligns the aspects of the adoption of these disruptive technologies with the core Bali Fintech agenda around enabling fintech while ensuring financial sector resilience, addressing risks and promoting international cooperation.