for consumers in markets whereby access to the banking sector has been limited so far. in this way, a credit history will be created from scratch at a much lower cost compared to the credit history databases that exist today. at the same time, creditors may get access to such databases on a fee basis, allowing them to receive a list of customers that have already been accessed. in order to get the borrower ’ s profile, no physical appearance may be needed nor any documents that usually accompany a loan application. credit scoring techniques may access data even from the consumer ’ s smartphone and the system will be able to identify potential credit risks with a significant level of accuracy. as certain confidentiality issues may arise, all appropriate technical and legal safeguards should be employed in order to assure all stakeholders of the confidentiality of the provided information. d. competition and level - playing field the establishment of a level playing field, regarding the competition of financial institutions may demand that they are equipped with similar tools, and no relevant restrictions or barriers exist within the eu member states. in turn, this means that credit - risk data may require a high degree of standardization. however, this is far from being the case today, as we are currently facing a fragmented system of national credit data sharing. apart from operating at a national level, a number of challenges arise for calculating and comparing data coverage figures on customers across countries, as each credit bureau does not necessarily collect information on the same population across countries. the european credit research institute has conducted a survey commissioned by 2 / 5 bis central bankers'speeches accis ( 1 ) which provides a list of credit bureaus operating in european countries and underlies the aforementioned challenges. as a result, competition in the information industry within the eu is almost absent. the market for credit data remains national and hence, commercial credit bureaus do not face competition. the eu should have been the relevant market for credit data by ensuring a level - playing field for all credit bureau participants. conditions may improve through the interlinkage of information flows to the various credit bureau stakeholders. more specifically, as information flows between suppliers andand users of information increase, the interlinkage between the national credit bureaus should increase as well, by incorporating more information from customers. in such an interconnected network, all stakeholders would find it more attractive to join. the more sources are connected to the network, the more detailed credit knowledge becomes the more useful it become for risk - management purposes. e. regulatory and supervisory initiatives

: hart publishing ), p. 159, 162. barron j., and m. staten, ( 2003 ), “ the value of comprehensive credit reports : lessons from the u. s. experience. ” in credit reporting systems and the international economy ed. margaret miller. boston : mit press. zhang b et al, sustaining momentum, the 2nd european alternative finance industry report, cambridge centre for alternative finance ( cambridge university, september 2016 a ) ; zhang b et al, the 2015 uk alternative finance industry report, cambridge centre for alternative finance ( cambridge university, february 2016 b ) world bank. 2011a. general principles for credit reporting. washington dc : world bank. www. worldbank. org / en / topic / financialsector / publication / general - principles - for - credit - reporting international finance corporation 2012. credit reporting knowledge guide, washington dc : world bank. ( 1 ) source : page 1 – “ the european credit information landscape : an analysis of a survey of credit bureaus in europe ” aei. pitt. edu / 33375 / 5 / 5 bis central bankers'speeches