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A Midway, a financial company owned by the Guararapes Group, is the largest issuer of Brazil's Private Label cardsRiachuelo, also known as "store cards", is one of the top ten issuers of branded cards in the country. The company currently has more than 31 million customers who have Riachuelo cards, the retailer that gave rise to the Group. 

In its credit evaluations, Midway is already prepared to take advantage of the benefits offered by the Positive Registry. With this new vision of the client, the company has identified the opportunity to boost its credit approval rate by around 10%, without increasing risk, proving one of the main advantages promised by the Positive Registry. Positive datastimulating credit expansion. 

The results obtained by Midway, although based on preliminary models and relying only on information from financial institutions, are promising. Other gains identified are:

• Aggregating the positive data of those who would no longer have an approval problem helps to classify this profile even more accurately. Midway has identified the opportunity to target profiles with a lower 30% risk rate than the original average for the range. 
• With better risk discrimination, institutions can choose to reduce risk with the same volume of approvals as in the non-positive scenario, which also brings benefits to the customer: this reduction in default can be passed on to them in the form of lower interest rates.

"We believe that the good results we've had with the use of positive data, albeit at a preliminary stage, indicate the great potential that is expected with the entry of information from telecommunications companies and from utilities. It's a huge gain for the consumer," says Bruno Pazzoto, Executive Superintendent of Credit and Modeling at Midway.

The company's experience is in line with a study carried out by the National Association of Credit Bureaus (ANBC), which listed some fundamental issues for the expansion of the credit and consumptionas a stimulus to trade and service activities:  

• Expanding the use of positive information in credit analysis;
• Increasing credit competitiveness through technological innovations in the trade and services sector;
• Promoting affordable credit for small and medium-sized enterprises;
• Encouraging the responsible use of credit aimed at families and entrepreneurs;
• Promotion of an entrepreneurial agenda;
• Improving credit system guarantees.

Experiences such as Midway's confirm the position of the National Association of Credit Bureaus (ANBC) and also tend to enable the main benefits that the credit bureaus sector has to offer. credit bureaus has been publicizing the Positive Registry with automatic inclusion of consumers and companies: conscious consumption and responsible credit.

ANBC Press Relations

Regina Pimenta: (11) 98136.6835 regina@pimenta.com

Ana Carolina Rodrigues: (11) 98674.0348 anacarolina@pimenta.com