What is Equifax?
Equifax is one of the leading credit bureaus and has presence in all continents. In India it has been established as a private limited company where seven leading banks of India have a stake in this bureau. These include State Bank of India, Bank of India, Bank of Baroda, Religare Finvest Limited, Kotak Mahindra Prime Limited, Union Bank of India and Sundaram Finance Limited. It provides many services like credit bureau, business analytics and risk management. IT started its credit bureau operations in September 2010. Currently it has 200 members supplying credit information about borrowers.
One of its key strength is that apart from maintaining individual credit information, they also maintain a huge repository of data about credit information of microfinance institutions. Equifax launched its dedicated credit bureau for microfinance institutions in May 2011. The credit report of microfinance institutions is particularly of interest to large banks as they are the lenders to most microfinance institutions.
What are services provided by Equifax?
Equifax India provides many services to lenders and borrowers across India. These include:
- Basic consumer credit information report – includes all credit information history of individuals like various loans and credit card borrowings, repayment, recent activities, account details and enquiries sections.
- Enhanced consumer credit information report –an enhanced version of basic report which also includes graphs and charts to help the creditor with a quick snapshot of individual’s credit behavior.
- Microfinance institution credit information report – Similar to a consumer credit information report, but pertaining to a microfinance institution. It is made reliable because of the widespread database of Equifax spread across India.
- Microfinance Portfolio review – This is important for microfinance institutions to know their standing as compared to other similar MFIs and other similar information helpful for strategic decisions.
- Equifax alerts – These solutions help generate specific alters for example to monitor individuals who are seeking out credit or to alert creditor if borrowers credit limit has increased etc.
- Equifax Risk score – It is a special offering of Equifax which helps predict if a borrower will default in the next 12 months. This can also be calculated for individuals with no credit history based on demographic attributes supplied in the enquiry. This is especially helpful with not much credit information is readily available about an individual.
- Data enrichment and cleansing services
Equifax has its own set of global proprietary tools that are used to analyze the huge amount of data gathered from various institutions and assess the creditworthiness of borrowers. Equifax especially focuses on using the latest technology and highly efficient algorithms to search and match data.
Apart from these Equifax also provides some auxiliary services like
- • Verification services – Identity verification by matching different government databases like PAN number, ADHAAR number and alerting for mismatches
- • Value added services – different products like credit risk and fraud management products, product and pricing design, collections solutions, portfolio management, process redesign, government and monitoring frameworks, industry diagnostics. These services are targeted to help businesses lower their costs improve their yields and get better customer loyalty, thus improving the overall profit performance.
- • Multi-bureau solution – Equifax also has a solution for lenders to see the consolidated credit information reports from multiple credit bureaus. This requires some integration with other systems.