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Equifax Confidential and Proprietary Building an Effective Credit Information System The Credit Bureau Perspective Sriram Kalyanaraman, Director Sales and Product Development Equifax Credit Information Service, Mumbai Aug12

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Equifax Confidential and Proprietary Global Overview CANADA Consumer#1 Commercial #2 UNITED KINGDOM Consumer#2 Commercial #3 CHILE #1 ARGENTINA#1 BRAZIL Commercial #2 Consumer #2 IBERIA Spain Consumer #1 Portugal Consumer #1 ANDEAN REGION Peru#1 Uruguay#1 El Salvador#1 Honduras#1 Ecuador#1 INDIA Consumer MFI RUSSIA Consumer #1 UNITED STATES Consumer#1 Commercial #3 Equifax is a global information solutions company 113 years history of leadership in credit information services worldwide with a full suite of credit solutions Successful track record and reputation serving global markets across 17 countries Largest US Credit Database and # 1 ranking in most markets where Equifax does business Proprietary databases containing information on over 300 million consumers and 100 million commercial entities worldwide and average of over 10 trade-lines per consumer 2

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Equifax Confidential and Proprietary Risks and Challenges Over-indebtedness and multiple lending Pressure to sustain operations for incumbent players Limit on total loan / exposure of a borrower All Institutions not sharing data SHG data not available Risks and Challenges Over-indebtedness and multiple lending Pressure to sustain operations for incumbent players Limit on total loan / exposure of a borrower All Institutions not sharing data SHG data not available Access Platforms Web based access using proprietary tool. Online batch and system readable format Output available in multiple formats Access Platforms Web based access using proprietary tool. Online batch and system readable format Output available in multiple formats Key Updates Membership : 341 (MFIs 95) Data 200 million + ( MFI 62 Mn) 4.28 mn enquiries processed in FY 2012-13 Key Updates Membership : 341 (MFIs 95) Data 200 million + ( MFI 62 Mn) 4.28 mn enquiries processed in FY 2012-13 The Microfinance Exchange - India Equifax Services Unique search / match algorithm for MFI data Ability to do phonetics based name match Leverage family details Reports provide delinquency string Future Products Industry Reports Mobile Reports Scores Equifax Services Unique search / match algorithm for MFI data Ability to do phonetics based name match Leverage family details Reports provide delinquency string Future Products Industry Reports Mobile Reports Scores Source: MFIN, RBI, Mint Data Initiatives Built a data submission tool for the industry Ability to accept data without ID information Built database using MFI specific data elements such as joint liability group credit attributes Data Initiatives Built a data submission tool for the industry Ability to accept data without ID information Built database using MFI specific data elements such as joint liability group credit attributes Accurate and timely data collection by MFIs on prospects and borrowers from the credit bureau member institutions which is Data supplied by the MFIs to credit bureaus on a regular and timely basis. Collation, correction and standardization of the data and ensuring that the data is complete, searchable and standardized Credit Bureau Products that are accessible, accurate and usable across the lifecycle of a loan for better decision making resulting in more and better quality assets

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Equifax Confidential and Proprietary Our proposed products for MFIs Credit Information Reports Enables Member to determine credit worthiness of a customer & help meets regulatory compliance - No. of active loans, total outstanding balance across MFIs, past due status Portfolio Review Assessment of portfolio quality & behavior of existing customer across all lenders. A powerful tool for regular monitoring of portfolio accounts for proactive risk management LAUNCHED PRODUCTS Portfolio Alerts Provides a series of credit based triggers to pro-actively determine a set of existing customers which are showing either improvement or deterioration in financial status or are looking for fresh credit in the market Industry Reports Comprehensive report that provides valuable insights on industry trends sliced and diced across various dimensions such as geography, customer profile and other parameters; An effective tool to benchmark current operations and guide future business growth Comprehensive report that provides valuable insights on industry trends sliced and diced across various dimensions such as geography, customer profile and other parameters; An effective tool to benchmark current operations and guide future business growth FUTURE PRODUCTS- Evolved MFI Bureau Usage Leveraging the deep product suite, new products will be rolled out based on market needs and readiness Scores Risk indicators that can be used for quick and accurate decision making which is predictive and objective which reduces the dependence on internal criteria and optimizes implementation of learning from market data.

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Equifax Confidential and Proprietary Illustration of Visual Analytics ILLUSTRATION ONLY

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Equifax Confidential and Proprietary Key Enabler/Challenges: Search & Match Name DOB ID Address Name DOB Phone Address Zip ID Phone DOB ID Phone Address Name Zip Name Age PhoneID Complete data submission Ensure all credit institutions participate in the bureaus Ensure that all institution submit complete data Data Quality Address Address Format is not standardized Regional Language References Name Vary from region to region Influenced by religion and caste Many instance of names with just Initials ID Population Not every one has to have one Socio-Economic Condition Joint Family Highly populated

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Equifax Confidential and Proprietary Key Challenges and the road ahead CHALLENGESCURRENT GAPSWHAT NEEDS TO BE DONE Use of credit bureaus Early in the lifecycle on effective use of credit bureaus in decisioning more information vs accurate information Use of data to make differential decisions rather than classification into black and white Score/Risk based pricing Best practice transfer from banking Risk ranking of bureau scores Technology Internet access in remote branches Limited number institution using loan origination systems and automated decisioning systems Mobile Reports Work with bureaus and software providers to create low cost solutions for LOSs and end to end decisioning systems Data Data Capture Low understanding of the importance of data quality and accurate data capture Data Submission Regular & timely submission of data Ensuring complete submission of data Accurate reporting of changes in the data Continuous changes in branches and account nos. SHG data not available in the data submission Investment in technology to ensure the branches are connected and there are basic checks in place on data capture MFIs to continuously work for improved data collection Sharing of SHG data by the banks and state governments (SHG/MFI overlap 80%) Awareness of data quality issues and sensitization of the teams to the importance of accuracy of reporting. Training and awareness Awareness of Information provided by Credit Bureaus and its importance in credit decisions for MFIs for risk management & regulatory compliance Partnership with Bureau, MFI associations and institutions like IFCI for creating awareness on credit bureau importance & need for financial inclusion

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Equifax Confidential and Proprietary How does the future look? Consumer Demographic Data Consumer Surveys Telephone & Utility Exchanges Identification & Linking Data Tri-bureau Data Fraud & Authentication Data Employment Data Marketing Response Data Securities Compliance Data Telephone Number Data Commercial Exchange Address Hygiene Data Consumer Credit Database Monthly Updates: 15,000+ Data Providers 1.8 billion Trades 110M Collections 350K+ Bankruptcies 800K+ Judgments/Liens 12M Address Changes 144M+ Online Transactions Unique Business Models