The challenge of building a credit reference agency from scratch is not for the faint-hearted. The credit information market has historically been dominated by established players whose network effects create significant barriers to entry. At Infact, we're taking an innovative approach to overcome these challenges and build the UK's first real-time credit bureau.
Our strategy centres on what we refer to internally as "progressive data network building" – a methodical approach that combines immediate value delivery with strategic data acquisition. Here's how we're making it work:
The traditional approach to building a credit bureau would require extensive data before providing any value like the approach CallCredit took 20-years ago. We've flipped this model on its head by opting to deliver immediate value to lenders through our Affordability Engine without requiring pre-existing credit data. By leveraging advanced statistical modelling and comprehensive datasets, we deliver personalised affordability assessments that help lenders make better decisions from day one.
This "wedge" product serves multiple strategic purposes. First, it establishes trusted relationships with lenders, creating natural pathways for deeper integration. Second, it demonstrates our technical capabilities and regulatory compliance, building confidence in our ability to handle sensitive credit data.
Trust lies at the heart of credit information sharing. As a regulated credit reference agency handling sensitive financial data, we recognise that earning and maintaining lender trust extends far beyond technical capabilities or regulatory compliance – it demands the demonstration of unwavering reliability, security, and value creation at every stage of engagement.
Rather than pursuing universal market coverage, we're building our network by focusing on sub-networks of lenders where we see an opportunity to reach network threshold value as fast as possible.
Following Reed's Law principles, our sub-networks share similar characteristics and either operate in the same lending category or share customers in the same areas of the credit risk spectrum. Each of these segments demonstrates strong direct network effects where:
Additionally, the power of these network effects is amplified because our target segments share critical characteristics:
This segmented approach creates what we call "compound network density" – where the value of participation increases dramatically within each lending category while also building cross-segment insights. For example, when multiple BNPL providers share data, they gain unprecedented visibility into their specific market while simultaneously contributing to a broader understanding of consumer credit behaviour.
To accelerate network growth, we've implemented a value-in-kind programme that rewards early data contributors. Lenders who commit to sharing credit data receive credits for API calls, effectively reducing their cost of accessing our services. This creates a virtuous cycle: the more data a lender contributes, the more value they can extract from our platform.
This model is particularly effective because it:
For example, when multiple credit card providers share data through our platform, they gain unprecedented visibility into customer intra-month line utilisation patterns across their sector. This specific, relevant insight is often more valuable than broader but less focused data coverage.
Unlike traditional credit bureaus built on legacy infrastructure, our modern, API-first architecture enables real-time data sharing and consumption. This technological advantage means that as our network grows, we can deliver increasingly sophisticated insights without the latency issues that plague traditional systems.
More significantly, our position as an early innovator in real-time credit information sharing presents a unique opportunity to help establish the protocols and standards for the future of credit data exchange. As the FCA's Credit Information Market Study drives the industry towards more timely data sharing, we're actively working with lenders and industry bodies to develop standardised approaches for real-time credit reporting. By creating an open, well-documented API specification that accurately represents modern credit products, we're laying the groundwork for a protocol network effect that could fundamentally enhance how credit information is shared across the industry.
This protocol-driven approach means that as more lenders adopt our real-time reporting standards, the value of participating in the network compounds for all participants. Much like how Ethernet became the de-facto standard for computer networking, we believe that establishing early, practical standards for real-time credit information sharing could create lasting infrastructure that benefits the entire lending ecosystem. Our focus isn't on creating proprietary standards, but rather on fostering industry-wide adoption of protocols that enable more efficient, accurate, and timely credit information sharing.
The regulatory landscape is evolving with the FCA's Credit Information Market Study (CIMS) has highlighted the need for more timely credit information sharing and better representation of modern credit products. Our real-time infrastructure and modern data model position us perfectly to meet these emerging requirements.
As our network continues to grow, we're seeing increasing evidence of positive feedback loops. Each new data contributor makes our platform more valuable, attracting additional participants and expanding our coverage. While we're still in the early stages of our journey, the foundations we've laid through our wedge product strategy, focused network building, and give-to-get model are creating sustainable competitive advantages.
The credit information market is ready for progressive disruption, and by taking a methodical, strategic approach to building our network, we're positioning Infact to become the UK's first real-time credit bureau that complements existing infrastructure. Our progress demonstrates that with the right collaborative strategy, even the strongest network effects can be augmented, creating opportunities for meaningful innovation that builds upon decades of credit information sharing experience.