Established in March 2001 as the CRD Management Council, and later renamed the CRD Association in June 2009, we have evolved into a reputable general incorporated association that continues to operate successfully to this day. Our primary focus has been on “soundly facilitating fund provision to SMEs” and “improving the quality of risk management in finance”. We achieve these goals by offering robust and stable credit risk scoring models and precise statistical credit risk information derived from the Credit Risk Database, which encompasses comprehensive financial and non-financial data pertaining to SMEs' business conditions and default records.
Over the years, the CRD Association has collected an extensive database, comprising more than 26 million financial statements from around 3 million corporations, along with over 6 million financial statements from approximately 1.5 million sole proprietors. Additionally, we have accumulated default data from around 0.35 million corporations (totaling approximately 4 million records) and around 0.2 million sole proprietors (totaling approximately 1 million records). The substantial scale of our database stands as a testament to the exceptional robustness and stability of our CRD credit risk scoring models. These models have demonstrated their high discrimination capability, even in the face of significant economic disruptions such as the Lehman Shock.
To maintain the accuracy of our credit risk scoring models, we have undertaken several revisions in response to evolving economic and business circumstances. Furthermore, we have expanded our range of services, including the Management Consulting Support System Service (McSS), which serves as a valuable communication tool directly linked to the assessment of SMEs' business potential. Additionally, our Apartment Loan Database Service aims to enhance the management of apartment loan reviews by leveraging the Association's business capabilities to its fullest extent.
In recent developments, we have made notable steps in the advancement of our services. We have successfully developed an AI-based credit risk evaluation model called T-Forest, which utilizes deposit account information. This model is now being provided to financial institutions, empowering them to monitor real-time credit risk evaluations on borrowers. Moreover, our growth expectation evaluation model, developed under a contract with the Small and Medium Enterprise Agency, has garnered attention from various stakeholders as it accurately predicts future growth based on past financial information.
I am pleased to share that we have made significant progress in the project to establish CRD Philippines, in collaboration with the Bangko Sentral ng Pilipinas (BSP) and with the support of the Japan International Cooperation Agency (JICA). In fact, the BSP recently held a launch ceremony for the CRD scoring model on April 25th, 2023.
Moving forward, we are dedicated to maintaining and further developing our database, which has become a crucial component of the Japan’s SME financial infrastructure. We remain committed to enhancing the range and quality of our services, ensuring they align with the evolving needs of our members and supporters. Additionally, we aim to expand the business model of the CRD Association to other Asian countries, fostering enhanced financial access for SMEs throughout the region.
July 1, 2023
Satoshi KUWAHARA
Chairman & CEO