ASX-listed marketplace lender DirectMoney has signed a comprehensive credit reporting (CCR) agreement which will give it greater access to client credit data.
The deal with credit reporting bureau, Dun & Bradstreet, will give DirectMoney access to additional information on the credit history of potential borrowers, with the aim of strengthening loan application assessments.
“CCR will be fully integrated within our day-to-day loan assessment and approval processes very shortly,” DirectMoney chief information officer, David Russell, said.
“We expect CCR will improve both our loan approval rates and help us maintain our already strong credit performance.”
DirectMoney’s agreement with Dun & Bradstreet will provide the lender with additional information regarding a new loan applicant’s prior performance on previous loan obligations.
This will include access to data relating to the timeliness of loan payments and overdue accounts, which DirectMoney says will allow better determination of the “creditworthiness of a loan applicant”.
DirectMoney will also share information regarding its borrowers' performance with other lenders who have adopted the CCR regime.
Dun & Bradstreet director of consumer risk solutions, Steven Brown, welcomed the partnership with DirectMoney.
“DirectMoney’s adoption of CCR further entrenches the momentum of the CCR system in Australia, which offers significant benefits for both lenders and consumers,” Mr Brown said.
“DirectMoney acknowledges the richer insight into consumer risk behaviour that CCR provides, while their customers will be rewarded for good credit behaviour with better rates and great access to more innovative credit offerings.”
[Related: Lenders urged to share credit data]