Veda, a leading provider of consumer and commercial data intelligence and insights has today released results from the largest Comprehensive Credit Reporting (CR) simulation ever undertaken in the region. The passage of Privacy Amendment (Enabling Privacy Protection) Bill 2012 initiates new era for credit issuance in Australia. Veda Pilot Spotlights the Impact of Comprehensive Credit Reporting
Australia now has a detailed case study of the benefits of Comprehensive Credit reporting – using de-identified account records from ten lenders to model the impact of additional data on credit risk assessment. The Veda study indicates that more data, more often will drive up to 40% improvement in credit bureau scores predictive accuracy.
Timed to coincide with the passage of the Privacy Amendment (Enabling Privacy Protection) Bill 2012, the Veda Comprehensive Credit Reporting Pilot models outcomes from real Australian data to demonstrate the impact of the most significant changes to credit reporting since 1988*.
Nerida Caesar, Veda CEO, commented: “Our pilot provides a new composite picture of accounts and demonstrates how different and better data will benefit all Australians. Lenders have the information needed to make responsible choices about what credit to extend, to whom, while consumers will be empowered to get the best deals for their own circumstances, developing a higher level of ‘credit consciousness’ in the process. “This change in legislation is effectively micro-economic reform. Comprehensive credit reporting provides improved sharing of information, leading to better credit issuance, credit product and services innovation, as well as increased competition across the financial services landscape – good news all round.”
Source: Veda Advantage