Equifax and Mastercard announce new CDR-backed credit assessment

Equifax Australia and Mastercard have revealed Open Score, a new CDR-powered credit assessment system that aims to provide support for 2.5 million Australians with limited or no credit history.

The target market of this product includes young people, new migrants, and those re-entering the credit market.

Open Score utilises transaction data obtained through CDR to help generate credit scores. Borrowers are given a score between 0 and 10, factoring in things like income, expenses, and spending patterns.

Equifax developed the technology while leveraging Mastercard’s global open finance network.

The companies said Open Score will improve the visibility of credit scores for those with little or no history, making obtaining loans easier.

Another benefit of the product is an alert function that can help identify fraudulent transactions.

Open Score is reportedly the first phase of the partnership, with more innovative products expected down the track.

Equifax A/NZ CEO Melanie Cochrane said Open Score will help consumers better manage their financial health.

“By tapping into alternative data like income, expenses or rental payments, Open Score can uncover insights into consumers that aren’t available with traditional credit reporting information,” she said.

“These insights will assist all Australians, but will be especially powerful for consumers who have traditionally been credit invisible. Equifax is proud to have developed Open Score, and to be working with Mastercard to launch an offering that will assist with increasing financial inclusion for this cohort and support more Australians to live their financial best.”

Mastercard’s open banking platform will power Open Score, promoting safety and security of data. 

“Open Score empowers Australians to use their own data more easily and securely to help improve financial literacy, manage budgets, and make more informed borrowing decisions,” said Brenton Charnley, vice-president, open banking, Australasia at Mastercard.

[Related: New solution anticipates client needs before they do]

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

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