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Experian launches new consumer credit score

India Infoline News Service | Mumbai |

Experian has also introduced a new scorecard for first-to-credit customers or individuals who have never had a loan in the past

Experian Credit Information Company India Limited launches a new consumer score (Delphi score), which provides a summarized indication of an individual’s creditworthiness. It considers various aspects of evaluation including existing outstanding, payment track records and past defaults. Statistically derived, the score measures the propensity of an individual to go delinquent within a 12-month time frame. The Delphi score range falls between 300 and 900; higher the score, higher the creditworthiness of the individual.
 
In addition, Experian has also introduced a new scorecard for first-to-credit customers or individuals who have never had a loan in the past. This scorecard has six grades between one to six: one representing high risk and six representing low risk.
 
Commenting on these developments, Mohan Jayaraman, 
Managing Director, Experian Credit Information Company of India Pvt. Ltd. and Country Manager, Experian India, said: “We are pleased to announce our effort towards facilitating a well-balanced, credit-scoring mechanism in India. The new scorecard has been built on a richer credit history thereby producing a more predictive scoring model which will be able to significantly discriminate between the borrowing habits of individuals.
 

Nihal Desai, Chief Risk Officer, Capital First Limited said: “We welcome the efforts by Experian in bringing their next-generation scorecard to India. This is in line with the requirements of the consumer finance lending institutions in India of better differentiation of credit and allowing for a clear segmentation of the new-to-credit customers, which is crucial to enhancement of financial inclusion.”
 
The improved scorecard blends Experian’s scoring capabilities with its deep understanding of Indian consumer data and significantly improves the client’s ability to identify creditworthiness of their customers.
 
Credit scores provide the end-user with a summary of the overall credit behaviour of an individual, using historical data and advanced statistical tools. Scores act as predictive tools for banks, financial institutions, telecom and insurance players thereby ensuring better customer management. With credit scoring, sourcing new customers is made more efficient by reducing the amount of manual checks. This improves credit penetration. Existing creditworthy customers with good credit scores can be offered new products, which in turn increase cross-selling efficiency. With Experian’s deep analytical knowledge and experience in scoring individuals with or without a credit background in other geographies, Experian aims to enhance credit penetration and achieve financial inclusion in the country.”

 

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