Equifax and Mastercard are using open banking data to boost credit access for millions of Australians with limited or no credit history.
Equifax Open Score taps Mastercard’s global Open Finance network to access consumer-consented bank transaction data obtained through Australia's Consumer Data Right. This data, which includes income, expenses and spending patterns, is analysed in real-time to assess the person's financial health, giving them a score between zero and 10.
According to Equifax, there are 2.5 million Australian consumers with limited or no credit history who may still need access to financial services. This includes young people, new migrants and those re-entering the credit market - groups often overlooked by traditional assessment models.
Melanie Cochrane, CEO, Equifax A/NZ, says: “By tapping into alternative data like income, expenses or rental payments, Open Score can uncover insights into consumers that aren’t available with traditional credit reporting information. These insights will assist all Australians, but will be especially powerful for consumers who have traditionally been credit invisible."