DNBi customer training. Welcome

Transcription

1 DNBi customer training Welcome

2 Agenda Data, Score, Rating and Limit Online credit files Folders Alerts Dashboard Admin Coverage countries 2

3 History D&B The company The Mercantile Agency is founded by Lewis Tappan John M. Bradstreet Company is founded by the competition John M. Bradstreet Robert Graham Dun takes over the management of the company The Mercantile Agency R.G. Dun & Company introduces a new level in Credit Management R.G. Dun & Company and The Bradstreet Company merges to 1 company: The Dun & Bradstreet Company D&B introduces the D-U-N-S number The D&B Corporation is split into: AC Nielsen, Cognizant, Reuben H Donnelley, Moodys Corp and D&B Dun & Bradstreet launches a new corporate brand. The trade name changes into D&B Abraham Lincoln, American president worked for D&B as a Credit Reporter 3

4 Who is D&B Active since 1841 (New York) Active in The Benelux since employees worldwide (120 in The Netherlands) Stock market listed (NYSE: DNB) Part of S&P 500 Largest worldwide database >230 million companies > coverage in more than 200 countries 4

5 D&B Solutions Risk Management Solutions (RMS) Control credit risk Sales & Marketing Solutions (S&MS) Maintaining/cleaning of your customers/supplier records Finding profitable prospects Does your relation meet the (internal) regulations Supply Management Solutions (SMS) Efficient supplier management 5

6 Only D&B has the 5 essential elements which convert information into insights Worldwide data collection Entity Matching D-U-N-S Number Companystructure Prediction Indicators DUNSRight 6

7 D&B Data sources in The Netherlands Interviews daily updates 750 monthly Press (important news, Mergers & takeovers) Chamber of Commerce Founding's Balances (complete coverage) Changes Liability daily updates mutations monthly daily updates > 200 monthly Payment experiences daily updates > monthly Court rulings Failures Debt remediation suspensions daily updates 1700 cases monthly 3 large collection agencies: Collection experiences daily updates monthly 7

8 Immediate availability credit files 8

9 Investigations Speed of Service 9

10 Online availability For requests on all countries! Pro-active versus re-active. Immediate online available for the countries mentioned below: Andorra Belgium Canada Germany France Ireland Italy Luxembourg Monaco Netherlands Austria Portugal San Marino Scandinavia Spain United Kingdom United States Swiss Also on Emerging Markets countries the online availability increased. If you don t find a company you can start an investigation. The report will be send to you when the investigation has been completed 10

11 D&B specialist in Scores More than 20 years of experience with B2B score models D&B Netherlands reviews the Dutch businesses since 1994 Models are evaluated on achievement on a regular base D&B also develops internal score models for customers Combines own data/score and D&B data New scorecard launched in September 2013! 11

12 De D&B Failure Score The Failure Score organizes all companies in a country based on the chance of bankruptcy Predicts the risk effective and efficient 12 month before bankruptcy Available for all companies, so also for non-balance obligated organizations Is based on modern statistic score engineering Is generic applicable on all companies in the Netherlands Is the basis for the D&B Rating and Credit limit Is dynamic and will be adjusted automatically and ongoing 12

13 From data to risk assessment The facts from today Data Chamber of Commerce subscriptions, press articles, courts, direct debit experiences, letter of liabilities, financial information, research, DUNTrade, Statistical Score model tekst D&B Database Inactive Active Predicts future risk Corrections Percentile Score Risk classes Risk Indicator

14 Trading Indicator D&B 2,4 mln active KvK subscriptions D&B Trade indicator KvK 400 thousand 1 million Economical active 1,2 million The KvK economical active indicator is a theoretical approach based on the charactheristics of deposit The D&B Trading Indicator is based on factual insight In The Netherlands companies are non active trading companies according to the KvK! However the companies who are active according to the KvK, are indicated as non activity in the D&B Database 14

15 How is the Score model been built? Credit searching companies Time = 1 Jan. 20XX Connection? Bankrupt Active Time = 31 Dec. 20XX Predictive Model = Scorecard The Analysis of the date to find out unique aspects of good and bad companies 15

16 Model development Age of companies: The older the companies, the lower the chance to bankruptcy Payment behaviour stays extremely predictable 16

17 The importance of payment experiences Thank to the enormous amount of payment experiences, D&B can built a very predictable model These payments increase especially the predictability in the lowest scores (1-10) with 30-50% With Met payment betalingsdata and/or en/of direct incasso debit Without Zonder payment betalingsdata and/or en/of direct incasso debit Random

18 Three data categories Demographic Payments Financial data Executive board linked to bankruptcy Legal form Number of years active Province Number of employees % prompt payments Trend in paydex vs 12 months Value direct debits last 36 months Number of direct debits Change in net equity Debt vs reference table (sector/size) Equity vs reference table (sector/size) Cash vs total assets Current liabilities to assets Net profit vs total assets 18

19 Building a Scoremodel After going through the score we add a macro economic layer can be customized with prospects score2= INT+ score*β1 + sic_woe*β2 Average bad rate 19

20 Example Scorecard Scorecard: Age < 2 years 0 < 5 years 12 < 10 years 15 >= 10 years 23 SIC < < < < Profit/loss < 0 0 <= > > % change in Profit/loss no changes 5 < 0% 0 <= 5% 10 > 5% 20 Net equity < 0 0 < < > D&B Payment Score < 40 0 < 60 1 < >=

21 Scores & Payment behaviour How is the model built? 21

22 Scores & Payment behaviour Payment experiences Collected by D&B via the DUN-Trade program. Both Dutch and International partners are involved in this program. 1 payment experience is the experience of one of our partners over the previous 12 months for the requested company. This total experience is usually based on multiple invoices. D&B Netherlands processes 100 million invoices annually from which result in 29 million payment experiences. Partners (customers of D&B) are selected on coverage in The Netherlands and as much as possible in various industries. Based on payment experiences of several partners D&B calculates a payment score (paydex), which indicates how quickly a company pays, days delayed after payment term. For the calculation of an average payment behavior D&B wants at least 3 suppliers. 22

23 Scores & Payment behaviour Payment experiences D&B Paydex 23

24 D&B Rating D&B Rating Objective risk indicator which can support you taking your credit decision. Per country different, analyses method universal Based on the D&B Failure Score Financial Strenght code/ Risk factor indicator Financial Strenght code (asset strenght)) Net EV (A-H) or subscribed capital (AA-HH) Risk indicator Evaluation of the risk. The chance of a bankruptcy within 12 months (1-4) 24

25 D&B Credit Limit Assuming 1 transaction of an average supplier with a payment term of 30 days Combination risk, size, sector, payment behaviour and equity of the company Use the advice as basis Credit advice is per transaction! Reports are requested by multiple companies at the same time: the advice is therefor not the total credit worthiness of the company 25

26 Other indications of risk Concern structure In addition to a comprehensive insight into the concern structure with the global parent company and the local highest parent company, there is also a count of the number of companies. Board Management functions of the company itself Overview management and (old) other jobs High risk indicators Inactive (no bankruptcy) Inactive (bankruptcy) Company has Rating 4 Will be shown with: Subsidiaries Other jobs Management Liability taker 26

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29 Dashboard, Companies, Alerts 29

30 Search for a new company 30

31 Search tool DNBi searches in your personal folders and if not found D&B checks the D&B database immediately 31

32 The Electronic Credit File 32

33 Chamber of Commerce check 33

34 Save, print, , preferences 34

35 Preferences With preferences you can set your options for printing, and save. These will be saved until you change them 35

36 Snapshots Snapshot: picture of the credit file on a certain time on one day. A note can be added. The snapshot and note can be shared with colleagues. Snapshot is also a way to save a file online (without that you make the file a live credit file). 36

37 Snapshots Where do you find the snapshot? If you choose include snapshots during your search 37

38 Snapshots And in the electronic credit file when you save this in a folder 38

39 Investigation 39

40 Investigation 40

41 Investigation 41

42 Electronic Credit Files Electronic Credit Files HTML of text rapporten Belgium (same reports as in DBAI) Canada Germany All other countries Ireland Italy Netherlands Spain Portugal United Kingdom United States 42

43 Live data Alerts & Dashboard, Filters & Export Belgium Canada Germany France (only overnight) Ireland Italy Netherlands Spain Portugal United Kingdom United States Only Alerts: Austria Swiss 43

44 Countries without an Electronic Credit File 44

45 Snapshots Snapshot can be saved in a folder, but won t be updated on a daily base (live) 45

46 DNBi Core Folders A Credit File in a folder will be update on a daily base with new D&B data. When you have added a Credit File to a folder you can use the: Alerts Dashboard Filters 46

47 Folders Above you see the standard folders. These can t be removed: All Companies: this contains all companies of all colleagues who use the same DNBi workspace, per DUNS with links to credit files and snapshots. All Credit Files and Snapshots: all companies from all users in the same workspace including all Snapshots. My Companies: only the companies the companies the user that has been logged in has requested and saved. Snapshots: all snapshots from all users in the same workspace Investigations: all investigations from all users in the same workspace Consumer reports (optional module): all requested consumer reports Possibility to create your personal folders: Share with colleagues Set up alerts When you open a folder this shows the companies with general data Filters: creates a lot of analysis: the possibitlity to make a query for all folders. For example all rating 4 companies with bad payment behavior. Folders including filter in thefolder Filters Filter export 47

48 Alerts Per folder you can set one alert Every user can set up 3 different alert profiles Alerts are personally, but can be send to 6 adresses The following data elements can be turned on in each profile: Global Failure Risk Band (GFRB) Average days beyond terms Failure Score D&B Rating (only Europe) Delinquency Score (Applicable only for UK, Italy, US and Canada) Besides these data elements you can chose to be alerted when several events occur Customer can chose from 3 alert profiles, but these are all customizable: Standard (almost everything has been selected already) Severe Only (only selected when GFRB gets worse and 3 legal events) Custom (nothing has been selected) Alerts are delivered in DNBi and/or via 48

49 Dashboard Each user can customize his/hers Dashboard 3 types of analyses possible: 1 Top X list with GFRB, Maximum Credit Recommendation, D&B limit, Average days beyond terms, D&B Rating, Out of Business Indicator and Tangible Net Worth etc. 2 Most recent alerts. 3 Portfolio Risk distribution by Global Failure Risk band, D&B Rating and Average Days Beyond Terms. Analyses possible over All companies folder or separate by each folder Click through on graphics 49

50 Global Failure Risk Bands GFRB Instead of using Ratings and Scores from different countries, DNBi uses the Global Failure Risk Band (GFRB) This GFRB is available in the Dashboard and can be selected in an alert profile, to rate companies of their real risk between countries: - all actual (%) chances to bankruptcy per score are mapped to 1 structure There are 9 risk bands 50

51 alerts Availibility GFRB on Dashboard Dashboard Dashboard 51

52 Admin You have full control over the Admin of this application. You can: Set up new users Assign them roles View the usage Set up Exchange rates Delete Credit Files Export data 52

53 Admin - users Set up new users 53

54 Admin - users Only Admin users can set up new users and can also disable them address is the user ID Chose a role Chose a group (if necessary) 54

55 Admin different roles 5 different roles Admin Credit Analyst Credit Supervisor Credit Manager Sales You can select different permissions for every role, but D&B has already pre selected a number of permissions per role in advance (see table next page). 55

56 Admin subscriptions per role Permissions Admin Credit Analyst Data Country Risk Credit Manager Credit supervisor Sales X Priority investigations X Investigations X Electronic Credit File View Notes PDF Print Add notes X X X 56

57 Admin - groups 57

58 Admin exchange rate Manage your own exchange rate DNBi uses automatically updated rates from Xignite You can also use your own Exchange rates 58

59 Admin contract types Unlimited access for The Netherlands Unlimited access for The Netherlands & Foreign Country All-in-1 package with a maximum number of credit files & companies added to the folders on a yearly basis Ask your Account Manager what type of contract you have 59

60 Admin number of companies in folders and request details Overview number of companies in folders/monitoring 60

61 Admin 61

62 Admin delete Credit Files Delete all your snapshots or electronic credit files (this is not a selection but everything) 62

63 Admin export data Select information from the electronic credit files. You can select the data elements as required The filters that have been set up in folders can be used in the selection 63

64 Admin - filters Select a name and filter (or create a new filter) 64

65 Admin The document will be schedules for processing. As soon as you see download the file has been generated 65

66 Admin Fraud/ Write-Off option The Fraud/ Write-Off option is a new functionality in DNBi With this option you can upload Customers/Prospects lists in DNBi with a specific message for your DNBi users, which they can view when ordering a credit file This functionality is free of charge, but needs to be activated in your workspace by Customer Services Are you interested? Please contact our Customer Services. They will activate this option in your workspace and send you a quick reference guide 66

67 Admin Fraud/ Write-Off option 67

68 DNBi Decision Maker Decision Maker (DM) is a separate module in DNBi which makes it possible to test your credit applications automatically against your credit policy combined with the most recent complete D&B information Decision Maker also registers every action and decision, taking account of the strict Corporate Governance rules By using DM a consistent work process is created, which increases team productivity 68

69 DNBi Decision Maker Advantages DM Consistent and automated calculated acceptation-, rejection- or refering advice for the user A workflow that refers credit applications to the right appraisal Own scoring models can be integrated in the decision making rules Makes advanced calculation of own credit limit per decision type Always uses the complete D&B data to support the Seamless integration with DNBi Core User rights can be set for specific product groups or specific countries, etc. Integration with consumer information from Focum. Both commercial and consumer information are considered in a decision Automatically converts the D&B credit limit to your own currency (ask your account manager for the country list) 69

70 DNBi Decision Maker DM process with online credit application form 70

71 DNBi Decision Maker DM process with online credit application form 71

72 DNBi Decision Maker Online Credit Application (OCA) By activation OCA you can make your credit application form available to third parties (e.g. also people you don t want to give direct access to DNBi). For example: Field service Sales department Distributors Agents Potential customers Potential suppliers Occasionally own staff who stay abroad OCA can be set up in a way that the applicant itself has to ensure the matching 72

73 DNBi Decision Maker Online Credit Application (OCA) 73

74 Country Risk Services 74

75 Example Country Risk Line Report (7 pages) 75

76 Example Country Risk Report (59 pages) 76

77 Extra Failure Service 77