New Zealand
New Zealand New Zealand
Consumers make most of their payments by internet banking
  • 74%
    BFSI
  • 70.5%
    TELCO
  • 54.5%
    RETAIL
  • 46.5%
    BFSI
  • 39.6%
    TELCO
  • 40.7%
    RETAIL
  • A higher percentage make payments via internet banking to banks and insurance companies, telcos, and retailers, respectively, compared to the regional average
  • Impact: Anti-fraud capabilities critical to the increased digital transaction frequency and customers’ trust in banks
Australia
Australia Australia
Consumers are most satisfied with the post-fraud service of banks and insurances companies
  • More than 70% satisfaction rate compared to 59.7% on average
  • Impact: Increased trust in BFSIs
Indonesia
Indonesia Indonesia
Consumers that encountered most fraud incidents in the past 12 months
49%
34.7%

AP Average

  • 49.8% have experienced fraud at least once compared to 34.7% on average
  • Impact: Overall anti-fraud capabilities need improvement
Singapore
Singapore Singapore
Consumers have the highest trust towards government
AP Average
  • 75.5% choose government agencies, compared with 51.7% on average
  • Impact: Trust of personal data protection is centered around government agencies
Vietnam
Vietnam Vietnam
Consumers encountered most fraud incidents in retail and telco during the past 12 months
  • 55%
    TELCO
  • 54.5%
    RETAIL
  • 32.8%
    TELCO
  • 35.2%
    RETAIL
  • 55% and 54.5% have experienced fraud at least once in retail and telco, respectively, compared to 32.8% and 35.2% on average
  • Impact: Overall anti-fraud capabilities need improvement
Thailand
Thailand Thailand
Most Thai consumers believe speed and resolution are severely lacking (response/ detection speed toward fraud incidents)
AP Average
  • 60.5% think it is most important, compared to 47.7% on average
  • Impact: Response time as one of key factors to fraud management to retain customers and gain their trust
India
India India as standalone
Consumers have the largest number of shopping app accounts in the region
India
  • Average of three accounts per person
  • Impact: Highest exposure to online fraud
Hong Kong
Hong Kong Hong Kong
The least percentage of consumers with high satisfaction level toward banks and insurance companies’ fraud management
AP Average
  • Only 9.7% are most satisfied compared to 21.1% on average
  • Impact: effective response towards fraud incidents to be improved
China
China China
Consumers are the most tolerant toward submitting and sharing of personal data
AP Average
  • 46.6% compared to the AP average of 27.5% are accepting of sharing personal data of existing accounts with other business entities
  • Impact: higher exposure of data privacy and risk of fraud
alert
Japan Japan as standalone
Consumers most cautious on digital accounts and transactions
50.7% Actively maintain digital accounts’ validity
27% AP Average
45.5% Do not do online bank transfers
13.5% AP Average
  • More than 70% did not encounter fraud incidents in past 12 months, compared to 50% on average
  • Impact: Relatively low risk of fraud

How positive data could impact your next credit application

How positive data could impact your next credit application

Australians applying for a new credit card, loan or mortgage may soon be assessed on their credit repayment history over the last two years after the federal government moved to fast-track greater sharing of positive data amongst banks and credit providers.

 

Until 2014’s Privacy Law reforms, credit providers based your credit record assessments on purely negative data. This included basic information like how many credit applications you had made (irrespective of their approval or rejection) and details of any overdue debts, defaults, bankruptcy, or court judgments against you.

 

But in a move welcomed by 70% of Australians, as reported in our consumer paper “Know the Score – how positive data could impact your next credit application” Australian credit providers have started actively sharing positive credit data, which means it is now it’s even more important than ever before for all Australians to understand how their financial history could impact their next credit card, loan or mortgage application.

 

Why? Along with the announcement in the most recent budget that young Australians will have to start paying back their HECS debt at a lower salary threshold, the growing national conversation around the future of housing affordability means that having a strong credit score and understanding its potential impact is paramount if the next generation is to be confident when seeking to enter the property market.

 

During this year’s Federal budget, Treasurer, The Hon Scott Morrison, announced that the Government will “legislate a mandatory comprehensive credit reporting regime if credit providers are not reporting at least 40 per cent of their data by the end of 2017,” as recommended by a Productivity Commission report.

 

The move to fast-track industry collaboration under the comprehensive credit reporting regime is expected to help borrowers with a strong track-record of making timely credit repayments be better recognised and will assist others to avoid entering into unmanageable levels of debt.

 

Your credit score

Many Australians lack an understanding of how their credit score is calculated and what impacts it and as a result fail to grasp how the world of positive data sharing could potentially impact their ability to borrow money – either in beneficial or detrimental ways.

 

In the past, lenders were only given access to negative data such as bankruptcies or defaults, and having multiple credit accounts also may have decreased a person’s score without any of their strong history of making repayments being able to be taken into account.

 

Without the ability to see how indebted a customer was or their bank account open and close dates, lenders lacked verifiable insight into how indebted a borrower was, increasing their risks of defaults and bankruptcies. But as more positive information is shared, credit providers are better able to identify and evaluate your credit position, based on a broader range of data which includes the accounts you hold and how well you’ve been repaying them over time.

 

Customers who are in control of their debt also benefit from positive data sharing, for example, those who may have had multiple credit accounts but were up to date with their repayments. In fact, Experian’s insight shows that the vast majority of Australians have a clean record of not missing a repayment. These borrowers with a strong repayment history, will increasingly be better recognised by lenders aided by positive data.

 

How the new world of positive reporting impacts you

Also known as Comprehensive Credit Reporting, positive credit reporting is already increasingly available in Australia. Credit reports now often include information about the current accounts you hold, what accounts have been opened and closed, the date that you paid any default notices, and how well you meet your repayments.

 

With up to 24 months’ worth of repayment information at hand, lenders are able to make more comprehensive assessments of your credit history when you apply for credit.

 

For borrowers armed with a strong repayment history and credit score, positive data provides an opportunity to negotiate with lenders for more competitive terms while lenders are more empowered to assist customers to avoid entering into unmanageable debt.

 

Those who are recovering from debt and have brought their accounts up to date may also increasingly see an improvement in their credit score, where previously the existence of the debt would have more strongly counted against them.

 

What you can do now

Experian’s March 2017 survey of over 1,000 Australians found that while 32% don’t know how to check their credit scores, a staggering 24% don’t even know what a credit score is. In total, 71% of Australians don’t know where they stand with potential credit providers and may be unaware of the changes they can make to improve their rating.

 

It’s important to start positively impacting your future credit score with a matter of urgency as the new data is increasingly shared. Our whitepaper provides more insight into the importance and composition of your credit score, and how positive credit reporting will make a difference.

 

By diligently making your repayments on time and ensuring your bills are paid to avoid your debt being sent to a recovery agency, as well as regularly checking in with your credit score you’ll ensure you’re in the best spot to take advantage of the new, positive credit reporting era.

 

To check your current credit score and start planning for your financial future in this period of change, you can contact us or visit our partners creditsavvy.com.au to set up a free credit profile.

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Poli Konstantinidis

By Poli Konstantinidis 11/02/2017

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