Trust Exchange has launched a series of applications that enable governments to connect, engage and collaborate more effectively and operate at the speed of trust. Join us on November 15th at 1:00PM EST as we discuss these innovative solutions and how they help local governments digitally transform their interactions with local businesses.
Financial institutions have a regulatory obligation to mange and monitor the compliance of all of their Third Parties ( Vendors, Customers Partners etc.) This function, while normally complex and expensive has been complicated by the uncertainty added to many companies by the pandemic response over the past 18 months. Join us and some industry experts to discuss the state of Vendor Compliance in this new reality.
Thank you to everyone who filled out our 2021 Vendor Management Survey! We had over 1,500 participants from a variety of backgrounds including Banking, Pharma, Government, and Retail! Despite the huge variety in organization size and number of key vendors, there was something over 80% over our respondents had in common: they expect their vendor management costs to increase in 2021.
Trust Exchange, a collaborative compliance platform, today announced that the company has appointed Graham Richard, former Mayor of Fort Wayne, Indiana to its Advisory Board.
As we pointed out in our prior post, The Secret of the B2B Credit Middlemen, the process for establishing, maintaining, and granting credit is fundamentally busted. It’s expensive, inaccurate, and non-transparent. We believe this industry can be restored in three key ways: 1. Freeing the Data, 2. Socializing the Data and 3. Fixing the Process. In this post we’ll discuss how socializing the data can eliminate one of the key problems in business credit reports: accuracy.
As discussed in our earlier post about B2B Credit Middlemen, a powerful aspect of doing business on the Internet is the elimination of sales and distribution layers between the producer and consumer. In a typical non-Internet value chain there are many “value-added” steps in the process between the producer and consumer. Each step increases costs and reduces profit.
Internet distribution models eliminate many of these steps by scaling distribution and eliminating sales complexity (e.g. Amazon, iTunes, and Zappos). In this post, we will attempt to illustrate the value chain for the B2B credit industry and point out the false value provided by the credit industry middlemen: the credit bureaus.
Credit Bureaus
Credit bureaus estimate a company’s viability by aggregating data from other businesses for them to use in making new credit application decisions. Unlike banks and financial institutions, they DON’T ISSUE CREDIT. Businesses issue credit to each other and should be the real arbiters of worthiness.
Furthermore, this data is created by businesses, provided to the credit bureaus (for a fee of course), and then resold to other businesses. The never-ending fees keep people from using the service and in turn make the data less accurate, less timely, and pretty useless. Who is a better judge of a company’s viability: a random call center operator or the people at companies who interact with each other?
Free the Data
The prevalent business model among these bureaus is to charge companies to ”establish” their profile, charge to view other companies’ profiles, and charge to submit data regarding the quality of interactions they have with other companies. Charging to submit data is a disincentive to accuracy and keeps the largest population of companies (small businesses) from participating. If companies could freely exchange THEIR data, then there would be a more timely and probably more accurate way to determine creditworthiness.
The value of the data increases as the number of active users in the network increases. A sort of Metcalfe’s Law for social networks in practice. The data should be free!
At Trust Exchange, we've created a community of businesses that disclose information with each other to build trust. We believe that with increase trust, business happens faster and more effectively. We've helped many companies in several industries. If you're interested in learning more you can either request a DEMO.
OR...just get started with a Free account HERE.
E: info@trustexchange.com
T: 888 777 8434
24 Veterans Square, Media, PA 19063 | 701 Brazos Street, Suite 1616, Austin, TX, 78701
