Credit Information Company Equifax India and International Finance Corporation (IFC) partner to deepen coverage of the credit data of self-help group (SHG) members.
PTI | August 14, 2017
MUMBAI, 14 AUG, 2017– Equifax India, registered as Equifax Credit Information Services Private Limited (ECIS), a global information solutions company, and International Financial Corporation (IFC), a member of the World Bank Group, have signed a cooperation agreement to work together to deepen coverage of Self-Help Group (SHG) member data in credit bureaus and enable banks to use this data in credit appraisals.
The agreement will promote financial inclusion and access to funds for women from lower income groups, by facilitating integration of SHG borrower data with credit bureaus. This will enable borrowers to get broader access to credit as lenders leverage this data to assess them on a more data-driven approach. The SHG movement continues to be a powerful tool for financial inclusion, and this project aims to build and strengthen credit data collection and credit bureau usage of individual SHG borrowers through a consultative approach.
For more than seven years, micro credit data from microfinance institutions and banks, through Joint Liability Group (JLG) model of lending, has been submitted to Equifax and other credit bureaus to form a rich source of credit history for microfinance borrowers.
“Deepening the coverage of SHG data in the credit bureau is a key initiative for us, and we are pleased to partner with IFC on this journey,” said Sundar Arumugam, head of Product Management, Equifax. “The initiative will increase the number of borrower profiles in the credit bureaus and thereby help them benefit while applying for new credit facilities. This is the second time we are partnering with WBG in the area of financial inclusion. Previously, WBG had engaged with Equifax to support the broadening of Credit Information Bureau (CIB) coverage among microfinance institutions. We intend to replicate our success of credit data coverage and usage in the MFI sector and in SHG lending as well through this joint initiative.”
“Financial inclusion is a key enabler to reduce poverty and boost shared prosperity, our twin goals at the World Bank Group,” said Niraj Verma, Manager – South Asia, Finance and Markets Global Practice, World Bank Group. “This initiative with Equifax will help SHG members, mostly women, with good credit history to leverage that to access capital to grow their livelihoods.”
Equifax has been at the forefront of providing analytical and insights driven solutions for financial services segments, including microfinance over the years, enabling lenders to make the right decisions in a timely manner.
Equifax is a global information solutions company that uses trusted unique data, innovative analytics, technology and industry expertise to power organizations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions. The company organizes, assimilates and analyzes data on more than 820 million consumers and more than 91 million businesses worldwide, and its database includes employee data contributed from more than 7,100 employers.
Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor's (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 9,900 employees worldwide.
Some noteworthy achievements for the company include: Named to the Top 100 American Banker FinTech Forward list (2015-2016); named a Top Technology Provider on the FinTech 100 list (2004-2016); named an InformationWeek Elite 100 Winner (2014-2015); named a Top Workplace by Atlanta Journal Constitution (2013-2017); named one of Fortune’s World’s Most Admired Companies (2011-2015); named one of Forbes’ World’s 100 Most Innovative Companies (2015-2016). For more information, visit www.equifax.com.
About World Bank Group (WBG)
The World Bank Group encompasses five closely associated development institutions that collectively serve as a vital source of financial and technical assistance to developing countries: the International Bank for Reconstruction and Development (IBRD) tackles poverty in middle-income and creditworthy low-income countries, the International Development Association (IDA) provides interest-free loans, technical assistance, and policy advice to governments in the world’s poorest countries, the International Finance Corporation (IFC) is the largest global development institution that provides investment,
mobilizes finance, and provides financing and advise to the private sector, the Multilateral Investment Guarantee Agency (MIGA) offers political risk insurance and credit enhancement to investors and lenders, The International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes. We have set two goals that will shape our work through 2030: ending extreme poverty and boosting shared prosperity. IBRD, IDA, and IFC have an active presence in India.