Q&A with Mark Almeida of Bureau van Dijk
Q: How does the acquisition of Bureau van Dijk fit into Moody’s work?
MARK: For me, the way to think about Moody’s is that we’re an information company. No matter how you slice what we do, we’re all about providing information and insight to as many people as we possibly can.
We believe that financial markets and banking systems operate better and support economic prosperity when those markets are efficient.
When people have confidence in how markets operate — when they feel there’s an even playing field — they’re more likely to participate in those markets and to rely on those markets either as a source of funds or as a consumer of capital. So, one of the ways to make markets more efficient is to ensure that everybody has equal access to information so that they can make better, more informed decisions.
In 2017, we doubled down on that mission when we acquired Bureau van Dijk, a company that specializes in capturing and distributing information on private companies for better decision-making and increased efficiency. Its products include the world’s most powerful data resource on private companies.
Q: What’s the significance of private company information?
MARK: While information about publicly traded companies is readily available, accessing similar details about private companies is more challenging. Bureau van Dijk has done a great job of figuring out how to make that information available to customers all around the world.
Q: How will Bureau van Dijk help advance Moody’s CSR efforts?
MARK: Again, one of the challenges that organizations have in lending money and offering credit is getting reliable information about their borrowers for making decisions. That’s particularly true when it comes to small business lending.
It’s relatively easy for big publicly traded companies to get access to capital. It’s much harder for a smaller business. Bureau van Dijk provides a high degree of transparency for companies and, in particular, their ownership. As a result, organizations can expand their relationships with third parties—including customers and vendors—and make responsible lending decisions with more confidence. This includes more effectively deciding whether to extend credit—and credit limits — to more firms in order to spur business growth and economic vitality in local communities.
They can also analyze corporate groups for risk factors or adverse news — information many organizations use to help them make ethical decisions around their customer and supplier base.
