The rapid acceleration of Artificial Intelligence (AI) presents a transformative opportunity for credit management. A recent survey, conducted in partnership with AICM, confirms this forward-looking mindset across the credit management community.
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If you have volunteers working for your organisation, the responsibility lies with you to find out if their Working With Children Check has been suspended or revoked.
Without a process in place for verifying and monitoring your volunteers’ Working With Children Check, you may not have up-to-date information on their clearance status. A volunteer may have had their check clearance denied, yet this could go unnoticed.
Equifax Quarterly Consumer Credit Demand Index: June 2020
Overall consumer credit applications down -38.8% (vs June quarter 2019) Credit card applications dropped significantly by -45.4% (vs June quarter 2019) Personal loan applications dropped -33.5% (vs June quarter 2019) Buy now pay later applications reduced -7.3% (vs June quarter 2019) Auto loan applications down -13.7% (vs June quarter 2019) Mortgage applications increased by +7.6% (vs June quarter 2019).
Equifax Quarterly Business Credit Demand Index: June 2020
Overall business credit applications down -7.53% (vs June quarter 2019) Business loan applications decreased by -4.11% (vs June quarter 2019) Trade credit applications fell -17.82% (vs June quarter 2019) Asset finance applications declined -6.72% (vs June quarter 2019).
It’s a well-known fact that registering on the Personal Property Securities Register (PPSR) boosts your rights when faced with customer insolvency. It’s a lesser-known fact that it’s equally useful when a customer wants to sell their business.
Equifax has been monitoring the impact of government stimulus on commercial SME lending, as well as tracking trade payments to determine the impact of COVID-19.
If one of your customers goes bust and you’re not a secured creditor, expect to lose out. There’s a world of difference between registering on the Personal Property Securities Register (PPSR) to become a secured creditor or remaining unsecured by not registering.
When a business goes into insolvency, there’s an order by which creditors are paid. Secured creditors take precedent, along with the insolvency practitioner, who receives a fee for managing the process. To be a secured creditor, you must have successfully registered your security interests in equipment and goods (‘personal property’) that you’ve sold on terms or leased to the customer. This registration happens on a national online noticeboard known as the Personal Property Securities Register (PPSR).
Few can predict what the economic fallout of the COVID-19 crisis will look like long-term, but even before this pandemic, there was a growing need for lenders to get better at predicting credit risk. With a greater influx of data and rapid changes in consumer behaviour, traditional risk scoring models like linear regression, are often not up to the task of predicting default risk for complex applications involving multiple data sources and relationships.
Without the right attributes in place, businesses will lose access to vital intelligence behind the ever-expanding data landscape.
“The information consumers generate will grow from 33 zettabytes in 2018 to 175 zettabytes by 2025 across the globe,” predicts market intelligence firm IDC. Along with an average growth of 27% per year from 2018 to 2025, IDC estimates that by 2025, “every connected person in the world on average will have a digital engagement over 4,900 times per day – that’s about one digital interaction every eighteen seconds.”
The arrival of open banking and the growing value of data processing and analysis makes data collaboration within and among businesses more crucial than ever. Meaningful collaboration requires teams and industry partners to work together in real-time, sharing ideas, criticisms and understandings of the data they are all using.
