Developed using Equifax UK’s largest ever data set, Risk Navigator 5, has shown potential to deliver a 6% average improvement in predictive power1, which in turn will help drive an increase in acceptance rates for credit applications. With access to more robust, representative data, lenders and creditors can now make better-informed and explainable decisions.

The enhanced predictive power should also reduce bad debt provisions, improving lenders’ portfolio performance.

For the consumer, Risk Navigator 5 is likely to increase access to credit, especially for younger people who may not have long established credit histories. Testing so far has shown an 8% improvement on credit score accuracy for those with a thin credit file1. This means lenders will be better equipped to offer credit to a segment of consumers who were previously underserved by mainstream financial institutions.

Jayadeep Nair, Chief Product and Marketing Officer at Equifax UK, said:

“Building a true picture of creditworthiness is a challenge for lenders, with important risk consequences for both their businesses and the wellbeing of their customers. Ensuring credit decisions are made using the latest predictive data available is more important than ever, as society navigates through the continuing financial uncertainty created by the pandemic.

“The launch of Risk Navigator 5 provides lenders with powerful insights that inspire confidence and transparency in decision making, with seamless and flexible integration alongside current risk models or as a standalone credit risk assessment. This latest evolution in credit risk will help improve responsible lending and financial outcomes for businesses and consumers alike at all stages of the credit lifecycle.”