It supports advisers through credit data
Equifax New Zealand focuses on empowering Kiwis to make strong financial decisions by ensuring consumers are aware of their credit files and credit scores.
The credit bureau’s core focus is supporting brokers and lenders to access a customer’s data, attributes and scores by analysing analytics and providing relevant information for a loan application.
“We help brokers save time when they want to access this data by having more complete information and giving the end consumer a better customer experience,” said Equifax NZ managing director Angus Luffman (pictured above).
Luffman said brokers used credit reports and affordability reports to provide the strongest selection for their customer prior to offering a loan application from a lender.
“Advisers are becoming more knowledgeable with the new regulations and policies introduced so using external data gives them a better picture upfront,” Luffman said.
“It also allows the adviser to understand what the consumer’s profile looks like before it hits the bank, so will have a better idea where to path an application for the consumer.”
The data analysed by Equifax NZ is embedded into broker CRMs to become part of brokers’ workflow along with information services being sent through and integrated for lending decisioning and processing efficiency.
Equifax also releases a quarterly business credit demand index which measures the volume of credit applications for trade credit, business loans, and asset finance.
“The recent December 2021 quarter in consumer credit demand focuses on applications for credit as a lead indicator declined sharply in the quarter,” Luffman said.
“In this quarter we had the CCCFA changes which only impacted one month out of three. Since then, we have released date on declines in new account openings again since the commencement of the new regulation.”
Luffman said Equifax was seeing a softer period with account opening figures down. However, housing turnover and price movement increased by two-thirds during the final quarter for 2021 which gave an indicator of future movements.
“We look at two things, application credit enquiries and new openings which is always a seasonal demand, especially in a COVID period where it can have its ups and downs,” he noted. “Retail credit in account openings has dropped 44% year on year and home loan openings declined 35%.”
The December 2020 quarter was the strongest bounce back period post initial COVID lockdowns and the biggest volume of applications came through as the mortgage market grew and governments introduced polices for the economy to continue.
