5 ways bureau benchmarking improves onboarding, competitiveness and pricing

Credit bureau benchmarking has long been associated with one thing: reducing spend. And yes, it can deliver significant savings. But focusing on cost alone risks missing the broader strategic value it can bring.

For credit, fraud and procurement teams, benchmarking creates visibility and leverage that extends well beyond cost. It opens the door to better decision-making — from how data is used, to how budgets are allocated, to how suppliers are engaged.

In many cases, the real benefit has come from what benchmarking makes possible:

✅️ Smoother, faster onboarding
✅️ Greater pricing agility without margin squeeze
✅️ Improved targeting in risk-based pricing models
✅️ Closer alignment between credit, fraud and procurement
✅️ Contract terms that match current business needs, not legacy agreements

When you have insight into what similar organisations are paying and using, you gain negotiating power. And with that, you’re better equipped to tackle inefficiencies that have crept in over time and refocus resources where they’re most effective.

1. Onboarding that flows

Clunky onboarding journeys can drag on conversion and drive up operational costs. Delays, manual referrals, and decision friction all take their toll. And often, they’re symptoms of over-complicated bureau setups.

It’s not unusual to find multiple checks layered in legacy products still live or data combinations that haven’t been reviewed in years. Without clear comparison points, it’s hard to challenge the status quo.

Benchmarking introduces that clarity. It allows teams to see what others with similar needs and suppliers are doing and, crucially, what they’ve stopped doing.

One lender dropped two bureau checks after reviewing peer benchmarks, with no adverse impact on risk. The result was faster decisions, reduced manual handling, and a notable cost reduction without changing providers or overhauling processes.

2. Pricing flexibility (without losing control of margins)

In sectors where pricing competitiveness is critical — like motor finance or BNPL — the ability to move quickly on rates can make all the difference. But legacy bureau costs can quietly erode the room you have to manoeuvre.

Benchmarking helps pinpoint where current rates are out of sync with the market. This creates options to renegotiate existing contracts and moves savings towards customer pricing strategies that support commercial goals.

These aren’t long-winded transformations. Many lenders have been able to reduce bureau costs and improve pricing agility within weeks, not months.

3. Risk-based pricing, improved by better data choices

It’s easy to overlook the impact bureau spend has on data strategy. When budgets are absorbed by outdated or overpriced services, there’s less room to trial new data sources or refine decision models.

Benchmarking helps redirect spend towards inputs that enhance risk decisions — whether that’s integrating a secondary bureau, adding specialist affordability signals, or incorporating alternative data to support thin-file populations.

In one case, benchmarking enabled a lender to fund an additional bureau feed, resulting in better scorecard accuracy and a reduction in early arrears. Another redirected spend into specialist data to support affordability assessments for younger borrowers, improving performance in a key segment.

No extra budget required. Just smarter allocation of existing spend.

4. Credit and procurement, better aligned

It’s not uncommon for credit and procurement teams to have overlapping but disconnected goals. Procurement wants commercial efficiency. Credit needs predictive performance. Without a shared view, decision-making can stall.

Benchmarking bridges that gap by offering a neutral, evidence-based reference point. It becomes easier to align on priorities, whether negotiating contracts or assessing new data propositions.

And with third-party insight into pricing and usage trends, internal conversations often become more focused — particularly when responding to supplier price changes or reviewing underperforming services.

5. Contracts that reflect today’s needs

Many bureau contracts roll over unchanged, even when the business has evolved significantly. This can result in rigid terms, outdated assumptions, or commercial structures that no longer make sense.

Benchmarking flags where terms have fallen behind. That might be minimum spend thresholds that are too high, commitment periods that don’t offer flexibility, or services that are no longer used but still being paid for.

Adjusting these terms doesn't always require a lengthy procurement exercise. Often, subtle changes to existing contracts can deliver meaningful improvements — in both cost and service alignment.