In this day and age, banks and financial institutions should be equipped with the latest know-how and innovative technological solutions to keep pace with rapid digitisation of various credit lending processes including acquiring customers who fit into the right product type, customer retention, fraud detection triggers and improve asset quality among many others. Banks are, therefore, increasingly looking for unique targeted solutions which are, by and large, automated or require minimal paperwork and time-consuming cumbersome processes. To increase its clientele and optimise every critical part of the credit lifecycle, Equifax introduced several state-of-art matching algorithms and extensive data analytics systems. The in-built customised solutions offered by Equifax are aimed at ensuring regular tracking of a portfolio.
Equifax launched its consumer bureau in September 2010 to offer a wide range of services from Credit Information Reports (CIR) and portfolio review to risk scores and alerts to meet the changing requirements of customers. The services offered by the consumer bureau cover a wide gamut of functions such as providing an overall assessment of an individual's credit history, credit utilization, delinquency trends and accurately gauging the repayment abilities of new borrowers among others. Equifax alerts is one of the innovative solutions offered by the consumer bureau.
There are two kinds of Equifax alerts on offer as listed below:
- Activity Alerts
- Collection Alerts
Activity Alerts is an effective tool which uses information already available in the credit database of Equifax to deliver various credit related alerts. With the help of activity alerts, lenders can easily identify customers who are actively seeking credit. Alerts, therefore, highlight customers in a portfolio who are in most need for additional finance or credit. In other words, activity alerts helps lenders monitor the credit behaviour of active customers to anticipate and detect the need for credit without any hassles. Lenders can, therefore, make use of this tool to keep track of consumers looking for credit.
Collection Alerts helps lenders maximise collection strategies and make the collection process less cumbersome and time-consuming. Equifax offers various solutions to strengthen and optimize various collection efforts and costs. Collection alerts are a combination of extensive contact data and credit triggers which flag at the time of improvement in the ability of a customer to pay. Collection alerts, therefore, identify the right time to reinitiate the collection process. Also, when a customer’s ability to pay has decreased, collection alerts are triggered to signal suspension of collection efforts to save on unnecessary costs.