Equifax UK updates credit risk scores to empower better lending decisions
Newly enhanced data sets have shown improved predictive risk scores that will help businesses make better consumer lending decisions
Equifax UK has updated its flagship credit risk product, Risk Navigator 5, setting a new standard in
powering better decision-making and improving consumer credit outcomes.
Developed using Equifax UK’s largest ever data set, Risk Navigator 5, has shown potential to deliver a 6%
average improvement in predictive power 1 , 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
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 file 1. 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.”
NOTES TO EDITORS:
1. Equifax data & analytics: Average Gini improvement compared to Risk Navigator 4. Commonly
used to compare the prediction power of different models and scores and measures how
effective a model is at differentiating between customers who can and cannot meet repayments.
2. Equifax data & analytics: Risk Navigator 5 offers an 8% Gini improvement for thin file customers
compared to Risk Navigator 4.