The use of non-financial data in credit files offers the promise of a diversified information capital that will facilitate extension of reasonably-priced credit to those who have not previously accessed formal credit. The second challenge is the need to move towards achieving full file reporting by participating institutions.
Full file reporting, that is, sharing of both negative and positive information on customers is important as it enables risk based pricing through credit scoring. It is important to have full file reporting to facilitate credit scoring mechanism and enhance the information capital.