Equifax and Mastercard are harnessing open banking data to enhance credit accessibility for millions of Australians who either have limited or no credit history.
Equifax Open Score leverages Mastercard’s extensive Open Finance network to utilize consumer-consented bank transaction data, sourced through Australia’s Consumer Data Right. This real-time data—including income, expenses, and spending habits—is analyzed to evaluate individual financial health, resulting in a score ranging from zero to ten.
Equifax identifies approximately 2.5 million Australians with minimal or nonexistent credit histories who still require access to financial services. This demographic encompasses young individuals, recent migrants, and those re-entering the credit marketplace—groups that are often neglected by traditional credit assessment models.
Melanie Cochrane, CEO of Equifax A/NZ, stated, “By incorporating alternative data such as income, expenses, and rental payments, Open Score can unveil insights that aren’t captured by traditional credit reporting methods. These insights will benefit all Australians, but will be particularly empowering for those who have historically been considered credit invisible.”