CREDIT BUREAU

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ASSOCIATION OF SERBIAN BANKS (ASB) CREDIT BUREAU
(CB)

• CREDIT BUREAU

Rade Backovic, CB Head Predrag Rajacic,
Belit Srecko Atanaskovic, E-smart systems
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AGENDA

• FOUNDATION
• DEVELOPMENT
• CHARACTERISTICS OF THE SOLUTIONS
• EFFECTS
• OPINIONS
• TECHNOLOGY ASPECTS
• IS CHARACTERISTICS

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FOUNDATION

• FOUNDED ON 18.02. 2004 WITHIN ASB PURSUANT TO THE
  AGREEMENT CONCLUDED BETWEEN ASB AND BANKS
• BECAME OPERATIONAL ON NOVEMBER 15TH 2004
• DATA SOURCES AND USERS OF THE REPORTS ARE
• ALL BANKS (43)
• ALL LEASING COMPANIES (13)
• ALL GOVERNMENT AGENCIES AND FUNDS (GUARANTEE
  FUND, DEVELOPMENT FUND, EXPORT FINANCING AGENCY,
  ETC.)
• A NUMBER OF TRADERS

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FOUNDATION

• CURRENT ACTIVITIES ARE THE INCORPORATING OF
• THE TAX ADMINISTRATION
• LARGE TRADE ORGANIZATIONS
• IN THE NEXT PHASE OTHER SOURCES WIL GET
  CONNECTED TELCOS, PUBLIC SERVICE ORGANIZATIONS,
  ELECTRIC POWER SUPPLY COMPANY, AND OTHERS)
• ADMINISTRATION AND MANAGEMENT BODIES
• ASB MANAGING BOARD
• BUSINESS COUNCIL OPERATIVE BODY
• MANAGER FROM THE ASB

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DEVELOPMENT

• DATA SOURCES WERE INCORPORATED INTO THE SYSTEM
  ACCORDING TO THE SIZE OF CITIZENS AND LEGAL
  ENTITIES OBLIGATIONS
• BANKS
• LEASING COMPANIES
• DEVELOPMENT FUND
• STATE (TAXES)
• RETAIL
• OTHER INSTITUTIONS (TELCOS, PUBLIC SERVICE
  ORGANIZATIONS, AND OTHERS)
• THE FIRST TO BE SUPPORTED WERE CITIZENS
  OBLIGATIONS, FOLLOWED BY OBLIGATIONS OF LEGAL
  ENTITIES TO INSTITUTIONS STATED ABOVE

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CHARACTERISTICS OF THE SOLUTIONS

• COMPLETELY SELF-DEVELOPED SOLUTION (THE FIRST CB
  WAS FOUNDED IN SERBIA IN 1928 AND LASTED UNTIL
  1941, EXPERIENCE OF THE 26 CBs WORLDWIDE WAS
  EXAMINED)
• COMPLETE DATA ON CITIZENS AND LEGAL ENTITIES
  OBLIGATIONS, BECAUSE CB IS RECEIVING DATA FROM
  ALL CREDITORS AND ABOUT ALL THEIR CUSTOMERS
• DATA ARE UPDATED DAILY
• FOR CITIZENS, DATA ARE MAINTAINED ABOUT THEIR
• REAL OBLIGATIONS (LOANS, LEASING, CREDIT CARDS,
  OVERALL CREDITS UNDER CURRENT ACCOUNTS AND
  ACTIVATED WARRANTIES)

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CHARACTERISTICS OF THE SOLUTIONS

• CONTINGENT LIABILITIES (CITIZENS WARRANTIES),
• AND REGULARITY IN MEETING THE OBLIGATIONS
• FOR LEGAL ENTITIES DATA ARE MAINTAINED ABOUT
  THEIR
• REAL OBLIGATIONS, LOANS, LEASING, ACTIVATED
  GUARANTEES,ACREDITIVES)
• CONTINGENT LIABILITIES (WARRANTIES, GUARANTEES,
  NON-COVERED ACREDITIVES, AVALS)
• DATA SOURCES SOLVE THE CLAIMS ON DATA INTEGRITY
  ON THEIR OWN, AND MAKE CHANGES IN THE DATA, AS
  THE DATA FALL UNDER THEIR COMPETENCE
• BANK COUNTERS (1700) ARE THE CB COUNTERS
• FOR DIFFERENT SERVICES DIFFERENT REPORTS EXIST,
  AS WELL AS A REPORT WITH A SCORING

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CHARACTERISTICSOF THE SOLUTIONS

1. REPORT FOR A CITIZEN FROM CB MAY BE OBTAINED ONLY
   WITH THE PERSONAL SIGNED CONSENT OF THE CITIZEN,
   AND THE REPORT FOR A LEGAL ENTITY WITH THE
   CONSENT OF THE AUTHORIZED PERSON
2. THE TIME BETWEEN APPLYING FOR AND RECEIVING THE
   REPORT TAKES ABOUT 7 SECONDS ON AVERAGE

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EFFECTS

1. ENFORCING ORDER TO BANK DATABASES
2. SETTLED OBLIGATIONS FROM THE PAST
3. THE TIME OF REQUEST PROCESSING SIGNIFICANTLY
   REDUCED AND, CONSEQUENTLY, THE REQUEST PROCESSING
   COSTS
4. BANKS ENABLED TO INTRODUCE NEW PRODUCTS
5. LOWER INTEREST RATES DUE TO LOWER RISK
6. CITIZENS OVER-INDEBTEDNESS PREVENTED

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OPINIONS

1. INTERNATIONAL MONETARY FUND THE CREDIT BUREAU
   IN SERBIA IS A SUCCESS STORY
2. THE WORLD BANK A UNIQUE PROJECT IN THE WORLD
3. NATIONAL BANK OF SERBIA INTRODUCED OBLIGATORY
   OBTAINING OF REPORTS FOR ALL LOAN AND LEASING
   USERS

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Data Submission

• Daily submission of data (submission of new data,
  and changes in the status and values of the
  existing data)
• Defined standards for data exchange between Data
  Source and the Credit Bureau
• Client applications for data import and
  transmission
• Syntax and semantic validation in the data source
• Digitally signed data

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Data Acceptance

• Data submission into private data source space
• Data source responsible for accurate and updated
  data
• Only Data source is authorized to add, change or
  remove data
• Access to data only on the basis of the consent
  given by client

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Reporting

• Client application for report issuance
• A possibility of the B2B option (client
  application integrated in report users
  information system)
• Digitally signed approvals
• Report generation in electronic form
• approval-based search of private spaces
• filling the reporting database
• generation of encrypted pdf report document
• report submission to the user

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Technology, services, products

• MS Windows 2003 Server platform
• MS Windows 2003 Server (Standars or Enterprise)
  OS
• MS Network services (DNS, DHCP, IPSEC)
• MS Active Directory (W2k3)
• MS Message Queue services (Http Support)
• MS Certificate Services
• Schlumberger CSP, MS Smart Card services,
  Cryptoflex 8k v2 smart cards
• MS IIS 6.0 (ASP.NET)
• .NET Framework 1.1
• ADO.NET
• MS SQL 2005
• MS Exchange 2003
• MS ISA Server 2004
• Development platform VS .NET 2003

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IS Architecture
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Server resources...

• Over 30 servers grouped by functions
• Domain controlers,
• Ifrastructure servers (DNS, DHCP),
• CA servers
• Colaboration servers,
• File and FTP servers,
• Data servers
• Application servers
• Web servers

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Phisical resource allocation
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Communications and connecrions
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Security aproach...

• Secure architecture
• Security aware features
• Reduce vulnerabilities in the code

• Reduce attack surface area
• Unused features off by default
• Only require minimum privilege

• Protect, Detect, Defend, Recover, Manage
• Process How Tos, Architecture Guides
• People Training

• Clear security commitment
• Full member of the security community
• Microsoft Security Response Center

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Security Perimeters
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B2B Architecture - resources
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Credit Bureau facts ...

• Web and Windows services oriented system with
  fully integrated Identity management based on
  digital certificate on Smart Card
• 50 Data sources with daily updates
• 80 GB Data Base
• 3,000,000 citizens
• 380,000 enterprises
• more than 1700 external clients
• Availability period 8-20
• 2-4 seconds response time
• 8000 reports daily
• Highly automated (5 business people and 4 support
  man)
• Scalabe
• Ready for interconnection

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Contacts

• kreditni.biro_at_finnet.co.yu
• office_at_e-smart.co.yu