How does a start-up credit bureau rise to challenge industry giants in just a few short years? In South Africa, the credit bureau industry is marked by intense competition, with six primary hosting credit bureaus and numerous reseller bureaus vying for market share.
Launched as a primary credit bureau in 2018, VeriCred Credit Bureau (VCCB) has already carved out a solid niche in this saturated market by prioritising agility and innovation. Determined to reshape the status quo, VCCB is redefining what it means to be a credit bureau, providing bespoke solutions that help clients unlock the full potential of their data.
In his role as VCCB CEO, seasoned industry stalwart Paul Yon is eager to lead a privately-owned, entrepreneurial business that dares to innovate. With an impressive career in credit risk within the retail, banking and credit bureau sectors, Yon is passionate about taking on the challenge of truly differentiating VCCB in a market where credit bureaus have a largely similar core set of base data. “Success is not in doing what everyone else does, but in doing things differently,” Yon says. “Now stress-tested by South Africa’s largest retailers and banks for our exceptional quality data, we are focused on growing value-added services that set VCCB apart.”
Yon says VCCB’s journey is not merely about expansion, but about delivering value-driven, innovative solutions, addressing specific needs with agility and precision. “As a relatively young business with no legacy system issues, we’re in a position to innovate and tailor solutions quickly. Our proprietary technology systems enhance data accuracy and responsiveness, enabling clients to make informed decisions swiftly.”
The company takes particular pride in offering clients quick access to information and technical expertise. Analyst Illana Melzer, founder of 71point4, delivers research and analysis on the property market that requires particular credit information. “Our insights are only as good as our data. After engaging with one of the larger bureaus trying to access data, I was referred to VCCB. By the next day, I had the info I needed,” Melzer says.
According to Yon, corporate clients value affordability and flexibility, seeking a credit bureau that can deliver insights quickly and go beyond raw data. “Data is currency, and harnessing its true value can provide businesses with a competitive edge. We act as a true strategic partner, working with clients to transform their data layered with ours to optimize their business decisions. This is where the true potential lies.”
Determined to challenge the perception that credit bureaus merely provide credit data, Yon is transforming VCCB into a true data solutions partner that serves as an extension of a client’s business, rather than a grudge purchase. “Businesses have their own data, which we can skilfully combine with ours to make it work for them. For example, overlaying retail transactional data with VCCB credit data provides a different dimension to understand shopper behaviour, incorporating customer profiling, segmentation, affluence and geo-spatial insights. These insights help retailers tailor their offering strategically to optimise customer value, better leveraging their data.”
In direct competition with long established industry giants like TransUnion, Experian, as well as three other primary credit bureaus, VCCB has steadily grown its client base across banking, retail, microlending, debt recovery and telcos, as well as exploring data solutions for the non-core credit sector such as loyalty and rewards programmes and fintech payments.
To sustain future growth in targeted sectors, VCCB will grow core bureau solutions, delivering relevant and innovative products and building collaborations and alliances. In this regard VCCB has made great strides developing fraud management as a centre of excellence. The company will further provide innovative specialised data solutions that align with macro and portfolio industry trends, harnessing data ecosystems and alternative data, such as depersonalised mobile phone usage or shopper data, to provide deep insights.
VCCB is further innovating in providing alternative credit options for individuals without credit history through leveraging mobile app and e-commerce data. These options are expanding financial inclusion by offering credit solutions that don’t rely on traditional credit bureau payment data.
VCCB is also working with some clients to promote consumer financial literacy through a direct-to-consumer digital strategy that focuses on helping them understand their credit report and manage debt. Wonga CEO Brett van Aswegen is very complimentary about engagement with the VCCB team, saying, “We are encouraged by the collaborative and responsive approach of the VCCB team to finding workable solutions to benefit our customers. Our collaboration with VCCB has helped us to explore alternative solutions to support consumer education interventions.”
“Our credit bureau service will remain a primary offering, but we will also harness other data assets and innovate outside of the core credit sector,” says Yon. “Our vision is to be a leading data solutions business.”
Yon’s belief in the power of innovation and agility resonates throughout VCCB’s operations. By fostering a culture of creativity and flexibility, VCCB is staying ahead of the curve, developing new integrated approaches, products and services that meet the evolving needs of its clients and align with industry trends. This forward-thinking approach is integral to VCCB’s success, as it carves a place in credit and data solutions in South Africa.
