Marketplace lending company DirectMoney has embraced Comprehensive Credit Reporting (CCR) after signing an agreement with credit reporting bureau, Dun & Bradstreet.
The agreement provides DirectMoney with access to additional information on the credit history of potential borrowers, which will strengthen the assessment of loan applications and credit quality of the fintech’s growing loan portfolio.
CCR provides lenders with additional important information regarding a new loan applicant’s prior performance on previous loan obligations. This includes access to data relating to the timeliness of loan payments and overdue accounts, allowing better determination of the creditworthiness of a loan applicant.
The agreement also builds upon an existing relationship with credit reporting agency, Veda, and allows CCR to be integrated into DirectMoney’s loan approval process, maintaining its focus on managing credit risk.
As part of the agreement, DirectMoney will also share information regarding its borrower’s performance with the other lenders who are CCR participants.
“CCR will be fully integrated within our day to day loan assessment and approval processes very shortly. We expect CCR will improve both our loan approval rates and help us maintain our already strong credit performance,” David Russell, CIO of DirectMoney said.
Dun & Bradstreet’s director of consumer risk solutions, Steven Brown, says DirectMoney’s adoption of CCR further entrenches the momentum of the CCR system in Australia, which offers “significant benefits” for both lenders and consumers.
“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 greater access to more innovative credit offerings,” he said.