Challenges in business information

Let me start with some definitions: when a credit analyst talks about business information, what we mean is data about our customers’ customers (also known as buyers). Business information includes financial data, as well as insight into a company’s operations, strategy, and goals. This can be non-proprietary, as in publicly available, or proprietary and obtained directly from companies by our global network of analysts who are in contact with companies daily.

Sourcing and analyzing the best possible data – in terms of quality, reliability, and comprehensiveness – is a perennial challenge in our field. This is particularly true in jurisdictions where there’s no legal requirement for companies to disclose financial statements, and for obtaining information about SMEs and subsidiaries of larger companies whose financial information might be integrated in a larger report. Across countries and regions there’s no consistency in financial reporting, structure, or nomenclature, so local experts spend a lot of time extracting and sorting raw data before they can analyze it. This task, however essential, is time-consuming, and speed is key when it comes to detecting financial vulnerabilities, early signs of insolvency risk, and suspected fraud.

Innovation in information

With the advent of generative AI and the different tools it can power, we are exploring ways in which we can apply them to enhance how we source and analyze business information.

In every innovation project, we start by deciding on the goal. In my scope, it’s clear – gaining efficiency for our analysts, so they can spend less time on manual tasks and more on those where their expertise in credit assessment adds value.

We know how much time we spend sorting through unstructured data, and as such we can measure with a significant degree of accuracy the time we save and the benefit of applying new tools to these challenges.

Evolutions and changing expectations

More and more, our customers are interested in sustainability across their supply chain. Our analysts have been incorporating certain ESG criteria in our credit risk assessment for a number of years. These indicators can shine a light on a company’s financial vulnerability and insolvency risk, as well as their strategy for climate resilience and how it can impact their financial stability. Given the growing importance of ESG in business decisions we are constantly looking for ways to incorporate related data more systematically.

Collecting and analyzing data is a constantly evolving field, and we must be able to anticipate and respond to new trends, tools, and customer expectations. Our 600 analysts around the world, sourcing proprietary information directly from buyers, do just that. The combination of their analytical skills, the trust-based relationships they build with buyers, and their insight into local and regional business trends differentiate us.