Consumer and commercial information solutions provider Equifax India on Tuesday announced the launch of its new risk score system 'TM ERS V2' which, it said, will assist banks in account acquisition and customer management.
According to the company, the new offering leverages the highest quality of data available to deliver attributes and scores, which will give banks a complete picture of the consumers they are lending to.
"Our newest risk score not only benefits our members, but it also provides value to consumers who might not have been in our credit file previously," said Shahid Charania, managing director, emerging markets, Equifax.
Charania said the new score has been scaled between 300 and 900. The system also provides a unique category of of 'no hit' which represents consumers with little to no credit history.
"By giving these ('no hit' category) consumers a score, we're providing them with opportunities for better lending - which means they might be able to finance a car, a home, or a student loan that was not available to them previously," Charania added.
The company elaborated that the new risk score gives a complete insight into a customer's behavioural profile - derived from credit history, payment behaviour and demographic data.
The company added that the score can be used across the customer life- cycle - and will help lenders manage the underwriting of new accounts, better control over the exposure of existing customers to credit offers, aid in pricing and collection strategies, and evolve a comprehensive customer value management framework.
Currently, Equifax India serves more than 875 members, including some of the largest financial institutions in the country.
