As banking and financial institutions are faced with constant challenges, from complying with new government regulations to acquiring and managing customers in a volatile marketplace, we understand how important it is for lenders to acquire and manage the right consumers for their asset products. An important lever in identifying the right segment and the right consumer is delivered by reviewing consumer credit information at the time of acquiring the customer and through the lifecycle.
From a borrowers' perspective, it is important that their data is reported accurately and that the information is up-to-date to ensure decisions are made correctly by lenders.
Both the lender and the borrower have the ability to access the information held in our database which helps the borrower maintain and review his/her credit history and helps the lender improve asset quality. Our consumer credit reports are built from our Equifax consumer credit database, using state-of-the-art searching and matching algorithms, backed by data from our member institutions.
The Equifax consumer credit database is a leading information services source for the credit granting community. It allows lenders to make faster, more informed credit granting decisions, while enabling them to manage their risk and maximize growth opportunities.
This is what it offers:
- Consumer credit files from all regions across India with the history of repayment on the consumer across his/her various loans and credit cards.
- Freshness of data, with data being updated on a regular basis from our member institutions.
- Operated using advanced search techniques and matching logic, which aggregates all information about the consumer across his /her various loans and cards with our member institutions.
- Managed in our world class technology and operations platform.
The following are the benefits:
- Better lending decisions led by a "world-view" of the borrowers track record.
- Reduced credit risk with access to the consumer's trade and inquiry information over a period of time.
- Improved identification of the consumer with access to ID information as available with other Equifax members.
- Robust tracking of credit performance of the portfolio on a regular basis.
Individuals can only access their own credit information report (Basic CIR). All other products are available only for members and specified users.
Equifax Dimensions enable lenders to make stronger, more precise decisions by understanding consumer behavior patterns and trends. Trended Dimensions attributes incorporate last 24 month of changes in balance, payment, percent payment, past due, utilization and credit limit to provide a more robust view of the consumers’ credit management tendencies.
By looking beyond a snapshot and identifying the patterns in their past behavior, Dimensions can distinguish prudent savers, risky opportunists, and distressed borrowers. Using the same, customers can optimize existing decision processes through better segmentation targeting.
Some of the business use cases developed using Equifax dimensions are:
- Determine incremental utilization that will lead to likelihood of going bad on CC
- Determine incremental utilization that will lead to likelihood of going bad on any product
- Determine the likelihood that the customer will remain current after 6m of line increase
- Ability for the customer to incur more debt over the next 3m
- Find the right consumer with the highest propensity to open a new account for Credit Card in the next 3 months
- Determine propensity of the customer to balance transfer over the next 3 months
Prescreen of One
Equifax understands that the few minutes of interaction with the customer is the best opportunity for an institution to know the customer and identify his product needs.
Keeping the same in mind, Prescreen is designed as a credit screening acquisition tool which help organizations seamlessly cross-sell additional services and deepen customer relationships.
The unique features of the product are :-
- Make confident, time-sensitive offers when consumers are likely to respond
The real-time results help the frontline associates make competitive need based offers during the critical few minutes of interaction with the customer.
- Better segment consumer groups for more tailored asset (cards, personal loan, home loan etc) products
Prescreen help identify prospects who are most likely to respond to loan offers helping focus product management and sales efforts on those individuals who are most promising and potentially profitable.
- Recognize interest and assess risk earlier for optimal account performance
Prescreen works by tapping the market-leading Equifax consumer credit bureau to identify predictive data elements that can help compute consumer’s inclination to avail asset products as well as identify consumers less likely to default on payments.
- Host customized credit criteria with pre-qualified product offers
Prescreen provides the flexibility of defining the institution’s credit rules to provide a seamless solution of on-boarding customers who match the risk criteria.
Credit Information Reports (CIR)
Equifax maintains an ongoing, continuous improvement approach throughout our business to ensure we always meet and exceed our customers' expectations. We offer basic and enhanced credit information reports to meet our customers' evolving needs.
Basic Credit Information Report (Basic CIR)
A highly usable and readable consumer credit report backed by our advanced search and match algorithms will help you assess consumer risk. With our extensive consumer credit database across our members which cover all regions in India and higher data acceptance rates, you can get a complete view of the borrower.
Our basic credit information report has 5 sections
- Identification and Contact Section: Confirm application information with access to the consumer's name, date of birth/age, address and ID information
- Credit Summary: Get a quick overview of consumer's key credit characteristics.
- Recent Activity: Helps you quickly assess consumer's recent activity including accounts which have gone delinquent, new accounts that have been opened, etc.
- Account Details Section: Account-wise details of the consumer's repayment history.
- Inquiries Section: Details the Inquiries made on a consumer.
Enhanced Credit Information Report (Enhanced CIR)
Our enhanced credit information reports are a more visually detailed format of the basic credit information report with at-a-glance graphs and charts for utilization, credit mix and delinquency trend.
Over and above the sections offered in the basic CIR, an enhanced CIR also provides graphical illustrations that provide a quick snapshot of the credit portfolio, detailing the distribution of credit in the consumer portfolio, available credit limit against utilized and overall performance. This is helpful for institutions doing manual underwriting.
Equifax Activity Alerts are a series of credit event alerts that are delivered by utilizing data from Equifax's credit file. This powerful tool will alert you to credit active customers in your portfolio who have recently demonstrated a possible need or desire for additional credit. Activity alerts can bring attention to customers in your portfolio that are seeking credit and therefore help you in monitoring their behavior proactively.
Equifax Collection Alerts empower changes to your collection process by offering solutions designed to optimize collection efforts and money spent.
It combines the value of industry-leading contact data with strategically selected credit-based triggers that flag when a consumer's ability to pay has improved, indicating that the timing may be opportune to re-initiate collection efforts. Conversely, other triggers highlight when a debtor's ability to pay is degrading, so that collection activity may be suspended to avoid incurring additional costs that are unlikely to yield a recovery.
Equifax Portfolio Review
The Equifax India portfolio review solution is designed to capitalize on predictive insight, with the goal of taking both positive and negative action to assure profit and generate revenue. The product provides added flexibility and actionable customer management.
The unique features of the product are:
- The portfolio review product may be provided in conjunction with Alerts – this is the only Portfolio Review product in the market with this capability. Alerts may be triggered and then a portfolio review may be run on those specific accounts.
- More than 200 attributes can be delivered with a unique attribute packaging
- All Attributes Review
- Provides an overall view of the individual's credit profile
- Focuses on overall credit usage and utilization
- Tracks all delinquencies reported on file
- Credit Card Review
- Contains attributes specific to credit card trade lines
- Secured Installment Review
- Contains attributes specific to secured installment trade lines
- Unsecured Installment Review
- Contains attributes specific to unsecured installment trade lines
- Score Review
- Provides the Equifax Risk Score along with a few key attributes
- All Attributes Review
Equifax Risk Score
The new Equifax Risk Score TM has been developed to leverage the most recent data from its members. This new market-level risk score is designed to predict the likelihood that a customer will default in the next 12 months. It is the first score in the market to score not only those consumers on file but also no-hits. No-hits are data files that are returned when there is no matching record found on the database for the corresponding enquiry due to the lack of complete data or the enquiring customer being new to borrowing. The Equifax Risk Score is calculated based on the enquiry parameters such as demographic attributes. It is especially important to validate the repayment abilities of new entrants to the consumer lending market, particularly for those where credit information / history available is limited.
The unique features of the product are:
- Developed specifically for the Indian market, using Indian data, incorporating local market knowledge
- Developed using data from major market players
- Designed to score consumers for evaluating his/her market level risk
- Can score no-hits and inquiry-only files.
- Designed to work with any standard product type
- Definitions consistent with international standards