Equifax BNPL Solutions

Unique Data and Powerfully Predictive Analytics

Today’s BNPL regulatory environment calls for lenders to strike the right balance between innovation, competition and responsible lending with positive customer outcomes. Data, analytics and technology can help lenders prepare for these opportunities and challenges.

Unique, data-driven Equifax BNPL Solutions can provide a more complete view of a borrower’s obligations for more accurate lending decisions. With our market-leading depth of data sources, powerfully predictive analytics and Cloud-native technologies, we can help BNPL providers increase safeguards against fraud, minimise the risk of delinquency, expand merchant services, support healthy consumer credit behaviours and develop more profitable transactions.

Solutions at every step

Examples of areas where we can improve outcomes at every step of the customer lifecycle:

• Merchant POS offer: build new merchant affiliations, conduct fast but comprehensive vetting and onboard efficiently with automated workflows, risk-scoring models and predictive algorithms.
• Identity verification: combine identity verification and authentication into a single, seamless mobile workflow with best-practice technologies.
• Credit check: say ‘yes’ to more consumers and provide BNPL services that meet their financial needs with predictive credit scores and alternative data sources.
• Account management: assess portfolio health, including growth potentials and default risks, with predictive financial insight and automated alerts.
• Maintain customers: position the right offer to the right customer with data-led insights into their recent credit activity and trends that predict future purchasing behaviour.
• Manage recovery: proactively minimise risk exposure and improve recovery rates with automated alerts and seamless, tailored treatment strategies.

Equifax BNPL Solutions Team

Our specialist team is here to work with you to develop transformative solutions and drive more informed lending decisions with the help of our most creative minds in data science, analytics and technology.

Depending on your needs and priorities, we offer turnkey and custom-built solutions that leverage the differentiated data assets, predictive analytics and Cloud-native technology that only Equifax can provide. Your organisation will benefit from greater visibility into risk and creditworthiness to protect your customers and secure growth in a competitive market:

• Increase the purchase value size responsibly to the right consumers
• Reduce default and fraud risk while maintaining a low-friction experience
• Find trustworthy merchants with the right economics to partner with
• Unlock new revenue streams and develop more profitable transactions.

The Benefits of Partnering with Equifax

Challenges & Solutions

Partner with Equifax to reimagine your challenges, overcome roadblocks and accelerate your success in the BNPL market.

• Grow profitable merchant affiliations

  Drive sustained growth and profitability with the right merchant partnerships. Identifying, targeting, vetting and onboarding reputable merchants efficiently is crucial to reducing merchant churn and creating sticky consumer relationships.

  Our data segmentation, business firmographics and credit data can help you quickly identify high-potential merchant partners who fit your target profile. Create category-specific merchant value propositions and drive sustained profitability with data-led service delivery models that provide value and reliability.

  Strengthen your vetting capabilities and onboard quickly with our automated workflows and risk-scoring models that protect against merchant fraud while enhancing the customer experience.

• Provide frictionless identity verification

  With our identity verification, validation and fraud solutions, you can take a proactive approach to mitigating the risk of fraud across the entire customer journey. Know who you are doing business with and ensure the integrity and security of personally identifiable information with our background screening, document fraud analysis, data verification and biometrics technologies.

  Reduce fraud risk at the point of application by checking your customers for known fraud indicators during identity verification. Without disrupting the customer experience, determine your customer's trustworthiness to make instant decisions about the need for further due diligence.

  Our biometrics solutions verify the identity of customers by layering facial recognition with liveness detection and document fraud analysis. This ensures the individual completing the application is a real person, the same person in the ID documents they are presenting, and the ID document is a genuine original ID document.

  Our gold-standard biometrics identity verification solutions use technological innovation and global best practices to combine verification and authentication elements into a seamless mobile workflow.

• Approve more of the right customers

  Improve the speed and accuracy of credit decisions using advanced analytic technology, highly predictive credit scoring and alternative data sources. Our new-generation credit scores, built on extensive event, enquiry and CCR data repositories, give lenders a substantial step up in accuracy for determining and quantifying risk. Modelling analysis shows our scores provide an upgraded ability to approve more consumers for credit without taking on additional risk, even in the higher-risk BNPL sector.

  Alternative data sets add another layer to indicators of creditworthiness. Innovative applications of transaction data, for example, can shed light on the spending and saving practices of applicants new to credit or those making efforts to recover from poor credit history.

  Similarly, innovative machine learning and artificial intelligence techniques can provide highly predictive measures of payment risk across the entire customer journey, helping to forecast delinquency, reduce second-pay default rates and identify creditworthy prospects.

  Increasing the granularity of credit assessment enables more accurate lending decisions and personalised outcomes, encouraging consumers to build healthier financial habits for lower delinquency.

• Assess portfolio health proactively

  Understand which accounts in your portfolios are at risk of default or delinquency by leveraging our sophisticated analytic tools and financial vulnerability indicators. Proactively minimise your exposure and determine which bad debt to act on with automated alerts that provide information on changes to your customer’s circumstance.

  Armed with this knowledge, you can tighten your credit policies to minimise the impact of an evolving macro environment and ensure a positive customer experience by removing financially vulnerable customers from cross-sells and marketing campaigns.

  Offering targeted assistance before a customer spirals into bad debt can help build genuine relationships that rehabilitate and retain customers for greater lifetime value.

• Position the right offer to the right customer

  Identify customer purchase signals and find untapped opportunities for cross-selling and upselling by leveraging data analytics to gain insight into the evolving credit behaviour, customer lifetime value, life stage and buying habits of existing customers.

  For example, you can identify and solicit customers before they are actively shopping by identifying recent credit activity and trends that predict future purchasing behaviour and near-term credit needs.

  From here, you can position the right offer to the right customer and reinforce the message through an appropriately timed multi-channel marketing strategy. Honing in on customer behaviours and triggers can increase the number of products your customer holds and decrease the likelihood of switching.

  Developing a mutually beneficial post-sale relationship fosters loyal customers who become repeat buyers and vocal brand advocates.

• Manage risk and improve recovery rates

  Target the most effective incentives and treatments to reduce delinquency rates and second-pay defaults. Minimise your risk exposure with our automated alerts and seamless, tailored treatment strategies that segment which customers should be prioritised for recovery, retention and win-back offers.

  Our omnichannel communications platform, for example, has built-in analytic tools to deliver hyper-personalised messages quickly and at scale. Engaging customers to repay their debts can be done in a way that puts the customer at the heart of the experience, using seamless and tailored processes, humanity and convenience.

  When it comes to collections, our digital communications technologies enable you to interact with customers on the channels they prefer – SMS, MMS, email, voice, webchat and social – without wasting time switching between platforms. Integrated language translation enables communications in the debtor’s native language, with 2-way responses and emphatic messaging helping to empower customers to repay their debt.