Providing a competitive advantage through analytics and knowledge. The Equifax data services complement TrueTime® by providing lenders with a complete solution for assessing the risk of a loan applicant, helping them to meet the latest FCA regulatory obligations on affordability checks, fraud and data sharing.
The LMX Products
Helping Lenders to make accurate decisions on affordability, potential indebtedness and to assess financial stability.
LendingMetrics provide tailor made bespoke reports and have a QCB (data block) of over 1000 characteristics, covering;
- Payment History
- Debt Levels
- Financial Background
LendingMetrics can also provide Insight quotations and customer management searches, these searches are visible to the customer only.
Accuracy and depth of data is imperative to risk strategy, utilise insight data to predict the future and get the complete client picture to ensure you make balanced risk management decisions.
Data integrity is at the foundation of Equifax, identifying when separate records should be attributed to one individual or one address, to provide a complete financial profile of that person’s history.
Insight holds information provided by credit providers and other lenders, including details of existing and previous credit commitments and historical information about the repayments of these agreements.
Quotation searches should be used when providing a quotation for a credit facility. For example when a consumer specifically asks for the “cost” of the credit, and isn’t making an application, quotation searches do not affect the consumer's credit score like credit applications can.
Customer Management Searches should be used when processing an inbound or outbound enquiry from an existing customer as part of the account management process.
- Independent client evaluations have demonstrated a higher GINI than comparable CRA scores
- Delivering GINI’s between 25 and 45 depending upon the portfolio and “bad definition” used
- Developed on a sample of known “unreliable payers” also incorporating two widely used Equifax scorecards that have highlighted predictability on those consumers with a willingness to repay against those that do not
- The Score has been specifically calibrated on short term loan performance data with specific outcome definitions (how likely the applicant is to repay within 30 days of their due date)
- The score is just as predictive on a new short term loan customer, not just with historical short term loans and performance
- The score can be overlaid on any bespoke scorecard to add additional predictive power
New To Market Applicants
Equifax’s bespoke scorecard has been proven to increase the GINI higher than comparable CRA scores for the alternative lending market and resulted in significant uplift in predictive power for lenders. Not only does it highlight the value of Equifax’s data but it is also indicative on new to market customers because the data utilised is not just short term lending data. There are key characteristics on a new to market applicant's borrowing habits in certain other sectors that can forecast and estimate how likely they are to default.
- Access millions of accurate records, covering the whole UK adult population
- Highlights important alerts, including forwarding addresses, HM Treasury sanctions, senior political figures, Office of Foreign Asset Control and Halo TM (Deceased)
- Provides the UK financial services sector with an unrivalled ability to tackle the threat from money launderers and terrorist finance
AML helps protect lenders from fraud by addressing the latest anti-money laundering regulations and operational challenges. Providing an extensive selection of checks on each application, conveniently available through a single search with reports that provide a pass or fail outcome against lenders specific pre-determined standards to give an instant safe decision.
- Bank Verifier instantly matches the sort code and account number provided by an applicant to the name and address held by their bank.
- The matching of bank account details the applicant has supplied is transparent and flexible allowing the lender to know if there is an exact, partial or no match
- Directly combats account fraud and meets regulatory requirements
Direct debit fraud is on the up, with over 41,000 incidents per year, BCA verifies applicant's account detail by checking sort code and account numbers against a trusted source before transferring funds, delivering a new level of confidence that your customer is credible. It also helps reduce the risk of failed transactions arising from invalid bank details, reducing your administration costs, providing a comprehensive service that quickly verifies that customers truly are who they say they are.
- Utilises Current Account Turn Over Data (CATO) supplied directly from the banks and building societies to verify salary and does not rely upon modelled data
- The customer's salaried account is identified by using superior matching technology looking at consistency and sufficiency
- Removes anomalies from the customers’ accounts such as unusually high amounts and credit as recorded in Insight
Turning Compliance into Strategy
Equifax Financial Stability Suite (EFS) was developed to meet new compliance guidelines for “Responsible Lending” to verify income to assess a customer’s affordability, however utilising EFS as part of credit risk decisioning tools has provided an uplift in identifying bad debt rates by up to five times.
A computational process that avoids manual error and is quicker and more cost effective than manual verification, while still allowing for deductions such as tax, national insurance and scaling to a year’s income.
- Land Registry / Registers of Scotland
Details of residential property sales dating back to 2000.
- Property Valuation
Having a clear understanding of property values is key to assessing the risks involved with Mortgage lending. Valuations through a surveyor can be costly and time-consuming and Indexation can be unreliable. We can solve both of these problems and help enable your business to make the best strategic decisions through our new Automated Valuation Model (AVM).
- Mortgage characteristics
How a customer pays down their mortgage gives an indication of how they manage their finances in general and how resilient they will be to potential financial shocks. We will provide this insight through equity estimations, starting mortgage LTV and the amount of mortgage debt that has already been repaid.
- Property ownership
We will help you to identify the Commercial Ownership types which include Social and Council Housing and Student Residence.
- Council tax
Council Tax bands and values for all residential properties.
- Rental properties
We provide historic rental listing details and rental valuation estimation models for various housing types including private, social and council housing. These rental estimates can also be used to advise potential rental yields on Buy-to-Let Mortgages.
- Postcode demographics
Postcode-based characteristics can help you to understand your target markets which can add value to marketing campaigns and branch footprints and more.
Equifax Property Insights can help you know your customers by understanding how they live. It can assist in credit risk and affordability assessments, lead to improved decision-making and help you to lend more responsibly. Understanding your customers living situation can help you to understand their circumstances better. In doing so you can provide them with the most suitable products.