Establishment of BISZ
The two-tier banking system evolving in the aftermath of the regime change brought about the requirement for banks to create a database that may be used to reduce the risk in lending. The creation of the database followed the development of the necessary legal background, which defined a framework for the mandatory use of the database, as well as the permissions for and the scope of managing the data contained in it. On 15 February 1994, eight banks established Bankközi Informatika Szolgáltató Rt. (Interbank IT Services), a private limited company, for the development of the credit information database. The founders identified the objective of the Company to be the implementation and operation of the Interbank Debtor and Credit Information System (IDCIS).
Launch of the business IDCIS service
The business subsystem of the IDCIS was launched on 28 June 1995, when it contained full records on the credit agreements of SME-s and businesses. By mid-1996, all of the banks, savings cooperatives and credit unions operating at the time had subscribed for the service. Data submission to the system was continuous and by the end of 1996, the records had become virtually complete.
Widening group of IDCIS users and the consumer service
Effective as of 1 January 1998, the amendment of the Act on Credit Institutions and Financial Enterprises (Credit Institutions Act) significantly widened the group of IDCIS users, requiring not only credit institutions and specialised credit institutions, but also all financial institutions and any investment companies engaged in investment lending to subscribe for the service. Additionally, the Act made it possible to launch the consumer subsystem of the IDCIS, as a result of which BISZ Zrt. set up its debtor records on natural persons in 1998, with actual operations (data submissions and queries) starting in 1999.
Extended data scope in the IDCIS
Since 2002, the business subsystem has contained negative records on insolvent SME-s and businesses, and also negative records on businesses violating their card acceptance agreements. In the same year, the subsystem registering natural persons was appended with records on bank card fraud.
GIRO Rt. becomes sole shareholder
In 2003, shareholder financial institutions sold their shares to GIRO Elszámolásforgalmi Rt. (GIRO Clearing), a company also owned by financial institutions, making GIRO Rt. the sole shareholder of BISZ Rt.
The Central Credit Information System (CCIS)
Effective as of 1 January 2006, the amendment of the Act on Credit Institutions and Financial Enterprises (Credit Institutions Act) set forth detailed provisions relating to the rules concerning the Central Credit Information System (CCIS). As a result, changes were made to the business and consumer subsystems as well. The most important changes concerned the consumer records. In addition to a more precise definition of criteria for both loan defaults and card fraud, the Act contained the requirement of the establishment of new records on loan applications rejected on grounds of false data or false documents.
New name: BISZ Zrt.
As a consequence of legislative changes, the Company adopted the name BISZ Központi Hitelinformációs Zártkörűen Működő Részvénytársaság (BISZ Central Credit Information PLC), abbreviated in Hungarian as BISZ Zrt.
Credit Reference (CR)
BISZ Zrt. launched Credit Reference in 2009 as the first voluntary positive consumer credit information sharing service in Hungary. The service aims to enable both consumers and banks to benefit from the advantages of positive credit histories. Using Credit Reference allows financial institutions a more accurate assessment of the creditworthiness of individuals applying to them. This may simplify application assessment, enabling banks to offer better terms to customers with good credit histories, who present low risk.
Widening group of Reference Data Providers
As of 11 June 2010, creditors domiciled in EU Member States other than Hungary have become eligible to subscribe for the CCIS if they provide cross-border services in Hungary, and enterprises engaged in commercial lending have also become eligible as of the same date.