Equifax India - Everything You Need to Know

The Credit Information Company (CIC) collates information provided by its registered members for conversion into a usable format to produce Credit Information Reports (CIR) and credit scores on customers under the Credit Information Companies Regulation Act 2005. The information provided by registered members is used to determine the credit behaviour of customers and thereby, help lenders gauge the creditworthiness and repayment capacity of borrowers.

The CIC uses proprietary tools which are customised to cater to specific requirements to help lenders make informed credit decisions. The credit information available in the Equifax database can be accessed by both lenders and borrowers. The lenders can, therefore, improve their asset quality while the borrowers can review their credit reports. The credit reporting agency uses specific matching algorithms and advanced techniques (search) for achieving greater accuracy.

Equifax product portfolio

Apart from offering traditional credit information services courtesy its consumer credit bureau which was launched in 2010, the CIC is often credited with taking leadership in providing risk scores and portfolio reviews of various microfinance institutions across the country by launching its microfinance bureau in May 2011.

The reporting agency also offers multi bureau solutions in that data from various credit bureaus is consolidated into a single point of inquiry for simplifying procedures. Equifax offers various value added services which can be utilized through the credit lifecycle. Equifax also offers a single window interface for both data entry and credit enquiry.

Equifax Products and Services

The list of products and services offered by the CIC are listed below:

• Consumer credit bureau
• Microfinance bureau
• Multi bureau
• Verification services
• Value added services

1. Consumer credit bureau
   1. Consumer credit bureau performs one of the primary functions of Equifax India - provide credit information scores (numerical score between 1 and 999) and reports. Consumer bureau helps lenders zero in on the right asset product for the right consumer by timely review of the credit information. Borrowers should ensure that data related to them is reported sans errors and is up-to-date without any outdated information. Equifax's consumer bureau has a large information base vis-a-vis credit activities of customers across India. Equifax uses latest technology and operations platform for updating and maintaining its credit information. As a result, lenders can have a holistic view of the creditworthiness of their borrowers and thereby, minimise risk. What's more, Equifax also facilitates simpler and faster verification of the identity of customers and portfolio analysis on a regular basis. Consumer bureau performs various additional functions such as providing fraud detection triggers and Equifax Alerts as well. The various services offered by the consumer bureau are listed below:
      
   2. Credit Information Reports (CIR): An Equifax Credit Information Report (CIR) is a basic consumer credit report which is created by Equifax with the use of its in-house specific algorithms and advanced search analytics for assessing a borrower's creditworthiness. In other words, a credit information report reflects the financial health of a borrower which determines whether the latter is eligible to avail of a loan. With a large consumer credit database and the use of global industry-specific technologies, Equifax is in a position to make a comprehensive assessment of borrower's credit profiles. Equifax charges Rs.400 for providing both a Credit Information Report and score (Charges: Rs.100, Rs.231 and Rs.69 for a report, score and delivery respectively)A Credit Information Report comprises five sections as listed below:
      1. Identification Section: Consists of contact details of a customer including his or her name, age, date of birth and address proof among other details
      2. Credit Summary: Consists of an analysis of essential credit characteristics of a customer
      3. Recent Activity: Consists of details of any new accounts which have been opened and any delinquent accounts
      4. Account Details Section: Consists of an account-wise break-up of the repayment history of a customer
      5. Inquiries Section: Consists of details of the number of inquiries on a consumer
   3. Equifax Alerts: activity alerts and collection alerts. Activity alerts is an effective tool which identifies customers who are seeking credit. Collection alerts, on the other hand, indicate the right timing to either initiate or suspend collection activities.
   4. Equifax Portfolio Review: Equifax India portfolio review is run on specific accounts after Equifax alerts are triggered. Equifax portfolio review entails the use of predictive insight, as it were, aimed at cutting losses and generate revenue. As part of the Equifax portfolio review, over 200 different attributes may be delivered, including secured and unsecured instalment review, credit card review and score review among others.
   5. Equifax Risk Score: The Equifax risk score is based on various parameters including demographic attributes to predict the likelihood of a default. Equifax risk score covers consumers with recorded credit payment history and no-hits as well.
      
2. Microfinance bureau
   1. Equifax set up a microfinance exchange in India in 2011 to rein in over-leveraging in the microfinance industry by joining hands with Microfinance Institutions Network (MFIN). India is one of the largest microfinance markets in the world. Equifax uses its customized platforms to deliver specific functions as listed below:
      
   2. Microfinance Score: At the time of its launch in 2011, Equifax microfinance score was reportedly considered the first-of-its-kind in India. It is aimed at predicting the possibility of a default in six months. Also, Equifax risk score facilitates better decision making (automated) sans long drawn-out procedures.
   3. Microfinance Credit Information Report (CIR): An Equifax microfinance CIR encompasses the same parameters as that of a basic consumer information report such as contact details, credit summary, recent activities, account details and an inquiries' section.
   4. Microfinance Portfolio Review: Portfolio review includes three specific parameters - benchmarking, early warning indicators and entry strategy. Benchmarking entails comparison of various microfinance institutions in a specific region/area/dimension. Early warning indicators track receding sourcing trends in the microfinance industry while entry strategy is aimed at exploring a potential market which can be tapped by a microfinance institution.
   5. Microfinance Score: At the time of its launch in 2011, Equifax microfinance score was reportedly considered the first-of-its-kind in India. It is aimed at predicting the possibility of a default in six months. Also, Equifax risk score facilitates better decision making (automated) sans long drawn-out procedures.
3. Multi Bureau Solutions: Equifax India offers a single point of inquiry for data consolidation from various credit bureaus.
4. Verification services: Equifax offers an ID verification service (automated) to verify essential data such as Aadhaar Numbers and PAN numbers.
5. Value added services: Equifax offers five kinds of value added services for customer retention and loyalty as listed below:
   1. Credit Risk and Fraud Management Products and Solutions: For effective fraud and risk management strategies
   2. Product and Pricing Design: For choosing the right consumer for the right product.
   3. Collection Products and Solutions: For optimising collection strategies in line with customer responses.
   4. Portfolio Management: For loyalty offerings and customer retention.
   5. Governance and Monitoring Frameworks: For segment level profitability.
   6. Process Redesign: For achieving a balance between credit effectiveness and customer experience.
   7. Industry diagnostics: For analysis of macroeconomic trends vis-a-vis a product and geography.
      

Who can Access the Equifax Credit Report?

1. If you are an Equifax member, you can access the Equifax database. Members include regular Equifax members, a few banks and also financial Institutions.
2. You can access information from the Equifax credit bureau only if you are a registered and authorized member.
3. The membership will be granted according to the Credit Information Companies Act. A member who has met the requisite data regarding borrowers are allowed to access the credit reports. If you want to get your credit history, you have to first get access directly from Equifax.

What Does Equifax Offer

If you are a Lender

1. Your repayment history as the lenders have reported it
2. Your consolidated credit behavior across every loan account
3. Data on your creditworthiness which will be based on the data given by every contributing member
4. Your address, demographic information and identification information (reported by member companies)
5. You will get access to Equifax ePORT after you register

A good credit score can help you secure lower interest rates on loans and credit cards.

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