Lenders to benefit from new Veda service

VedaScore Apply takes advantage of the enhanced data Veda is able to collect from individuals, following changes to the Privacy Act last year.

Lenders can now access stable risk scoring models, assisting them in minimising risk while maximising approval rates and, in addition, easing the transition to comprehensive reporting.

“While traditional negative data is a good predictor of credit defaults, the comprehensive data we can now collect in Australia allows businesses to see the complete picture of an individual’s credit history including insights into good repayment records,” Veda's general manager of consumer risk, Angus Luffman, said.

Veda noted the need to decrease the burden inflicted on lenders who rely on these scoring metrics to review their customers.

Mr Luffman said the early insights from New Zealand demonstrate how the superior predictive power of VedaScore Apply scoring models can help strengthen lenders' credit decisions, reduce risk and benefit consumers by allowing their recent positive credit behaviour to speak louder than any blemishes they may have had in the past.