Risk Solutions

Equifax's next-generation credit score has generated considerable interest for its ability to yield more predictive insight than our previous scores. Its step-up in predictive power and functionality makes Equifax One Score a powerful consumer credit risk analysis tool. 

Developed using innovative analytic techniques and incorporating recent data sets, our new score can facilitate better business outcomes for lenders across the customer credit lifecycle from financial literacy through to pre-screening, pre-qualification, origination decisions, account management and early collections.

Discover the most common questions asked about Equifax One Score.

(29 April, 2021)

Whether or not the end of the JobKeeper wage subsidy will lead to a spike in corporate insolvencies is a hotly debated topic. Some believe that Australia's strong economic recovery and favourable trading conditions will insulate against a wave of business failures.

Others argue we can't be that lucky.

The deferred payment agreements and default reporting gaps left on credit files from COVID-19 will continue to hang around long after the pandemic has run its course. 

There’s often confusion about the https://www.edxppsr.com.au/resources#glossarypurpose of the Personal Property Securities Register (PPSR). Business owners who don’t realise how important it is to register on the PPSR miss out on a valuable opportunity to protect against the financial loss that could occur when a customer goes bust.

The newly released Equifax Score is our most predictive score yet, making it easier for lenders to extend credit responsibly by more accurately assessing the risk of default for each customer1.

For some credit applications, it’s a fast and straightforward decision whether to grant or deny approval. For others, evaluating a borrower’s credit risk isn’t as easy, requiring more time and work chasing up referrals and double-checking background information. These marginal applications are a drag on efficiency, slowing down processes and impacting profitability. Too many credit opportunities are rejected because not enough is known about an applicant at this early stage of the credit lifecycle.

We all know how important it is to be able to explain and justify the basis for a credit decision. It’s not just lenders and regulators seeking greater explainability, but consumers too want the transparency of understanding why a loan was approved or denied.

Alternative data opens up a world of possibilities for more accurately determining creditworthiness. Where a person lives, where they dine out and how they spend their income…these are all data sources that have the potential to enhance traditional credit score models for improved assessment of financial reliability.

Predictability, continuity and reliability are crucial prerequisites for successful credit scoring. Sound risk assessment decisions rely on credit score models that move with the times, evolving to reflect changes in consumer credit behaviour and improvements in risk prediction technology.

Treasurer Frydenberg’s announcement on 25 September is about simplifying Australia’s credit framework.  As part of the proposed changes, APRA becomes the key regulator for home and personal lending with the intent of removing duplication by two regulators and freeing up the flow of credit, to help kick-start economic recovery.