Powered by MOMENTUM MEDIA
subscribe to our newsletter
CCR offering lenders more holistic view of customers

CCR offering lenders more holistic view of customers

Recent research has shown that consumers’ more complete credit profiles are helping lenders better manage risk, following Australia’s shift to comprehensive credit reporting.

The two studies conducted by Veda, the largest credit reference agency in Australia and New Zealand, found that more than 930,000 people who may have previously been financially excluded under negative reporting now have a credit profile after Australia’s move to comprehensive credit reporting (CCR).

Veda highlighted that more complete credit profiles are proven to aid Australians in accessing credit and help lenders better manage risk.

Advertisement
Advertisement

Mike Cutter, Veda’s executive general manager of credit risk and advisory services, commented: “The insights that come out of Veda’s consumer bureau are invaluable to lenders and financial institutions, because they offer a more holistic view of their current and prospective customers, what they want and how best to build a relationship with them.”

Veda’s research highlighted that 21 per cent of Australians with CCR data loaded have more than one lending relationship, and thus lenders are able to understand the risk profile of their customers at other financial institutions.

“CCR data on who is, or has recently been, in arrears and their behaviour once they fell behind in their payments, gives lenders advanced warning of who may recover versus who will likely proceed to default. This allows for a level of proactive account management that simply isn’t achievable without CCR data,” Mr Cutter said.

“By combining the emerging CCR data with Veda’s existing wealth of insights on credit active Australians, we can provide lenders with the most complete and dynamically updated picture of a person’s financial situation,” he added.

[Related: 1 in 4 Aussies fear credit score will affect loan approval]

CCR offering lenders more holistic view of customers
mortgagebusiness

 

Latest News

A class action suit has been filed against the major bank for allegedly approving home loans outside serviceability. ...

In its update on the implementation of Commissioner Hayne’s recommendations, the corporate regulator has hinted that it is investigating...

A non-major lender has announced a number of credit policy changes, including the addition of a maximum debt to income ratio. ...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The current mindset of the mortgage industry

Is enough being done to ensure responsible lending?