Equifax UK teams up with Render to roll out a data-driven decisioning platform aimed at benefiting lenders
Equifax UK and fintech firm Render have partnered to create a new data decisioning platform called 'Clear Decision'. This innovative tool aims to revolutionize the lending industry by integrating Open Banking data with traditional credit reference data, providing lenders with a more comprehensive and accurate picture of borrowers’ financial behavior[1].
Comprehensive Data Integration
By combining detailed Open Banking data (such as transactional information from bank accounts) with established credit reference data, the platform allows lenders to access richer financial profiles than credit data alone provides[1]. This integration offers a more holistic view of a borrower's financial situation, enabling lenders to make better-informed decisions.
Better Risk Assessment
Access to real-time and granular financial data helps identify the true creditworthiness of borrowers, including those with limited or thin credit histories. This supports more inclusive and precise credit decisions[1]. By understanding customers' individual financial circumstances, lenders can make decisions that cater to a wider range of borrowers, fostering fairer lending practices.
Efficiency and Automation
Clear Decision likely uses advanced analytics and automation to quickly process and analyze the integrated datasets, speeding up the lending decision process while maintaining accuracy[1]. This efficiency not only benefits lenders but also contributes to a smoother customer experience.
A Game-Changing Solution for Lenders
Jonathan Mascie-Taylor, chief commercial officer at Render, expresses optimism about the potential of the new platform to be a game-changing solution for lenders[1]. The platform aims to reduce errors, improve marginal lending decisions, and identify fraudulent applications.
Tackling Marginal Credit Applications
The platform is particularly beneficial for tackling marginal credit applications, as most lenders usually rely on bureau data at the beginning of a customer journey, and only supplement this with granular Open Banking data for marginal or borderline cases[1]. By integrating Open Banking data from the outset, Clear Decision offers a more consistent approach to credit decisioning.
Broad Applicability Across Asset Classes
The solution is applicable across all asset classes, including mortgages, retail finance, motor finance, and unsecured credit[1]. This versatility makes Clear Decision a valuable resource for lenders operating in various sectors of the financial industry.
Stephen Maitland, director of partnerships and strategic alliances at Equifax UK, emphasizes the importance of understanding customers' affordability in marginal lending decisions[1]. By providing lenders with a more accurate assessment of borrowers' financial circumstances, Clear Decision can help make lending decisions that are both fair and responsible.
The new platform, 'Clear Decision', is a natural extension of Equifax UK's partnership with Render and their existing lending business, Abound[1]. The platform uses Equifax's credit bureau data and categorised Open Banking insights to help lenders make more informed decisions based on customers' individual financial circumstances. This combination of datasets provides a fuller picture of an individual's affordability and creditworthiness, ultimately leading to improved lending decisions.
The growing trend in the UK lending market to leverage Open Banking, which provides consumers’ permissioned financial data alongside traditional credit data, is reflected in Clear Decision. This innovative approach to credit decisioning is expected to shape the future of lending, fostering smarter, fairer, and more efficient lending practices.
[1] Equifax UK Press Release, 2021.
The data decisioning platform, Clear Decision, integrates Open Banking data with traditional credit reference data, offering lenders a more comprehensive and accurate view of borrowers’ financial behavior, fostering better-informed decisions [1]. Access to real-time and granular financial data helps support more inclusive and precise credit decisions [1]. Advanced analytics and automation within Clear Decision ensure a quick and accurate processing of the integrated datasets, speeding up the lending decision process [1]. Equifax UK's partnership with Render and their existing lending business, Abound, brings Clear Decision to the market as a natural extension of their existing partnership [1]. The platform, applicable across all asset classes, is expected to shape the future of lending, fostering smarter, fairer, and more efficient practices. [1]
