Why is the credit industry so hard to understand? Credit Key
Why is it shrouded in secrecy?
Why is it so expensive?
Why is the information I pay for not current?
Why do I feel like my business is always the last to know when a supplier is in trouble?
Why indeed. These questions, and others, were the same questions I asked myself prior to creating the original idea behind G2Link. What I quickly found out is that I was not alone in asking these very questions. The status quo for determining trust and reputation has not changed for decades. It’s outdated, inaccurate and expensive. Why has no one come with an alternative? No one had; so I did. It’s called G2Link.
Here are a few reasons why the industry has remained the same for years:
They make a ton of money on data. Selling data is a primary revenue source for the credit bureau industry, which had US revenue of roughly $4B in 2011, according to Consumer Financial Protection Bureau (CFPB). With data, comes power. Even though this data maybe largely inaccurate (one in five consumers has an error in their credit report), without a better methodology, we are beholden to its output – and pay big money for mis-information.
They have 200 million files on consumers. Mistakes will be made. In fact, in the last three months of 2011, 33% of credit disputes by consumers regarding an item in their file were due to errors on behalf of the credit reporting agency, according to the CFPB. In another report issued by the CFPB, only an average of 15% of these disputes was resolved by the credit agencies.
Just exactly what are you paying for? A primary reason for inaccuracy in the data is that there are actually many different “scores” that the credit bureaus are selling. The result being a score that could be “meaningful different” then the true credit score, which could result in an unfair determination of creditworthiness, or worse yet, a favorable rating when the business is going out of business.
So, what is a business to do? Use G2Link to understand and monitor in real time business performance. Business relationships are built around daily interactions between companies, suppliers and customers. Through social media based partner, vendor and supplier interactions, our algorithm uses this data to establish in real time a company’s ability to meet its obligations. By capturing these “smart crowd” interactions, G2Link has developed a software platform that measures and scores these interactions to monitor, track and predict business performance. Instead of pulling an outdated, expensive and inaccurate credit report, the team at G2Link has built a software platform that provides more timely, actionable and clearer visibility into a company’s business performance. Better insight, means better decisions. Since our journey began in February, 2012, we are now tracking over 88,000 companies and have over 5,000 users that are experiencing a better way to measure financial performance.
Stop asking why and join the B2B trust and business reputation revolution at G2Link!