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Two recent studies have found that the number of people building their credit history is growing at a “swift” rate, following the country’s shift to comprehensive credit reporting.
The studies conducted by Veda, the largest credit reference agency in Australia and New Zealand, found that more than 930,000 people who may have previously been financially excluded under negative reporting now have a credit profile.
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Veda highlighted that Australia’s adoption of comprehensive credit reporting (CCR) is beneficial as more complete credit profiles are proven to aid customers' access to credit and help lenders better manage risk.
The recent study on consumer bureau insights revealed that only 56 per cent of enquiries come from the largest lenders, with the remaining balance spread across various industry sectors, which according to Veda shows the wide variety of loans consumers are accessing.
Veda executive general manager of credit risk and advisory services, Mike Cutter commented: “Lenders are regularly loading CCR data on more than 5.4 million Australians to Veda’s bureau. It stands to reason that the number of people positively affected by the change will continue to increase in line with lender participation.”
Veda said that the insights of its studies can help lenders and financial institutions, as they offer a holistic view of their current and prospective customers.
[Related: New mortgage players to change pricing dynamics: Veda]
