Mastercard and Equifax launch open banking credit score initiative
Momentum in the open banking regime has been flagging but a reset last year has boosted activity, including a Mastercard-Equifax tie up called Open Score.
Global payments scheme Mastercard and credit data and analytics provider Equifax have partnered to provide a new, much broader, consumer credit rating service, called Open Score, the first product designed exclusively for the labouring Australian Consumer Data Right (CDR) regime.
Open Score is a consumer credit rating that Equifax will market to lenders utilising Mastercard’s open finance capability which is based on CDR – or “open banking” as it is also known. Mastercard is also the regulated entity.
This will be the first bespoke product built on the open banking framework. Other users of CDR data augment it with what is called “screen scraping”, the practice of gathering data off the internet and from consumers. The Federal government plans to eventually ban screen scraping, replacing it with the more secure, credible and efficient CDR.
“This will be the first solution to market that uses the CDR framework for a risk score or a credit health score and with (this and Mastercard’s data) we can include data from many sources not available for current scores,” Equifax CEO Melanie Cochrane told Capital Brief.
