- HOW IT WORKS?
- Credit Score & Report
- Credit Bureaus
Headquartered in USA, Equifax Inc. operates in 15 countries throughout North America, Europe, Asia and Latin America. Registered as Equifax Credit Information Services Private Limited (ECIS), Equifax India is a joint venture between Indian financial institutions – Bank of India, Sundaram Finance Limited, Kotak Mahindra Prime Ltd, Bank of Baroda, Union Bank of India, State Bank of India, Religare Finvest Limited, and Equifax Inc., USA. In India, the head office is in Mumbai, and has branch offices in Bengaluru and. Delhi Equifax India provides solutions related to risk management, credit information and business analytics.
On 26th March 2010 to form as an information company related to credit under ‘The Credit Information Companies (Regulation) Act 2005 (CIC Act) Equifax India was granted its ‘Certificate of Registration’ by Reserve Bank of India (RBI). On May 2011, to address regulatory and growing lending requirements of microfinance, Equifax India launched a dedicated bureau. Currently, it has 1300 plus members that are registered and still adding new data and members to this credit bureau. On September 2010, Equifax India Launched Consumer Credit bureau.
Equifax India Collects the information from their respective members, processes the data to a usable and readable style and provide reports related to credit information and other relevant products that is within the purview of CIC Act, on consumers for many different types of uses. Equifax India also provides information on habits related to bill payment and individuals borrowing in addition to information related to the identification and this helps banks and lenders to determine worthiness related to credit of their respective borrowers.
Through a combination of robust analytics and data, Equifax India objective is to provide assistance to lending institutions to manage their risk efficiently and to meet Indian requirements using global proprietary tools that are customized to help them to make better credit and business decision.
For borrowers and guarantors, Equifax India have a plethora of products on offer currently – Reports related to Enhanced Consumer Information, Equifax Alerts and Credit Information Report related to Microfinance Institution, Basic Consumer Information Report, Cleansing and data enrichment services are offered to improve the data quality and also to improve the available credit information.
What does Equifax?
To produce Credit Information Reports (CIR) and credit scores under the Credit Information Companies Regulation Act 2005 on customers, Equifax India Collates the information that is provided by the members who are registered by converting into a format that is usable. To achieve outstanding accuracy, Equifax India uses advanced techniques related to searching and matching algorithms.
Product Portfolio of Equifax:
By launching its microfinance bureau in May 2011, Equifax India is providing portfolio reviews and risk scores of various microfinance institutions across the country. Equifax India offers an interface related to single window for both credit enquiry and for data entry and through credit lifecycle. Equifax India offers many services that can be used through the lifecycle related to credit.
List of Equifax Products and Services Includes:
1. Microfinance bureau – As India is one of the largest markets related to microfinance in the world, in the year 2011, by joining hands with Microfinance Institutions Network (MFIN), Equifax set up a microfinance exchange in India. To deliver specific functions, Equifax India
Uses its customized options as below.
- Microfinance Score – The first-of-its-kind in India, Equifax microfinance score that was launched in the year 2011, helped in predicting the possibility of default in the six months and helps in facilitating better-automated decision making.
- Microfinance Credit Information Report (CIR) – Equifax Microfinance include same parameters that of consumer information report such as credit summary, contact details, account details, inquiries section and account details.
- Microfinance Portfolio review – It includes three parameters – Entry strategy, early warning indicators and benchmarking. Entry Strategy focuses on aiming at exploring a potential market. Early warning indicators helps to track sourcing trends in the industry of microfinance. In a specific area/dimension/region, Benchmarking includes the comparison of various institutions related to microfinance.
2. Verification Services – To verify essential data such PAN and Aadhaar Numbers, Equifax India offers an ID verification services that are automated.
3. Multi bureau Solutions – For Data Consolidation from various credit bureaus, Equifax India offers a single point of inquiry.
Credit Information Reports (CIR)
Created with its in-house search analytics that is advanced and algorithms, Equifax Credit Information Report (CIR) is a basic consumer report that is created by Equifax. It helps in assessing the creditworthiness of borrowers In short CIR includes the borrower’s financial health that helps in determining the eligibility to avail for a loan. Credit Information of Equifax India report comprises of following sections as listed below.
- Credit Summary – It consists of an analysis of credit characteristics related to the customer
- Identification Section – It includes contact details of the individual like age, name, and address proof.
- Section related to Account details – It includes repayment history of an customer in form of account-wise break- up
- Recent activity – It consists of details related to new accounts that have opened and also any accounts that are delinquent.
- Inquiries Section – It consists the details related to the number of inquiries made on a consumer.
- Equifax Risk Score – To predict the likelihood of a default, this score is based on the various parameters that include attributes related to demographic.
For data consolidation from various credit bureaus, Equifax India provides a single point of inquiry.
Value added services include five kinds for customer loyalty and retention as listed below.
- Process Redesign – To achieve a balance between customer experience and credit effectiveness
- Monitoring and Governance Frameworks – For profitability related to segment level.
- Industry Diagnostics – Analysis of trends related to macroeconomic vis-a-vis a geography and product.
- Portfolio Management – For customer retention and loyalty offerings
- Collection Solutions and products – For optimizing strategies related to collection in line with the responses of the customer
- Fraud Management and Credit Risk products and solutions – For effective risk and fraud management strategies.
- Pricing Design and product – For choosing right consumer for the right product.
1. Who are the users that are primary of Equifax in India?
The potential borrowers who are keen to get credit include, existing borrowers and primary users of Equifax reports are lending institutions like NBFCs, banks and financial organizations.
2. From where does Equifax get its information?
From members that include financial institutions that are registered with it, Equifax gets its information. With no other external information going into making scores, Equifax uses only this information to generate its reports.
3. Who has the access to the information collected by Equifax?
The information can be accessed only by consumers who have provided their respective information and members that include banks/financial institutions that are registered themselves with Equifax. Furthermore, consumer has only access to his or her information and will not be able to access reports of others.