Equifax Canada Exploring How Payday Loan Data Could Help Drive Financial Inclusion

TORONTO, ON (May 17, 2024) – Equifax Canada, a global data, analytics, and technology company, is committed to promoting financial inclusion and access to fair and responsible credit opportunities for all Canadians. As part of this commitment, Equifax is exploring how data sources not traditionally used in credit scores, such as payday loans, could help create a more complete picture of consumers' credit  health.

"We believe everyone deserves the opportunity to build a strong financial future," said Rebecca Oakes, Vice President of Advanced Analytics at Equifax Canada. "By exploring new data sources like payday loans and the possibility of including this data in a consumer’s credit history, it could put the financial mainstream within reach for more Canadians and promote greater financial inclusion."

Equifax Canada is currently working to analyze data and understand its potential impact on credit histories and scores. Exploring new credit models and insights that leverage non-traditional data sources has the potential to create increased credit visibility for those consumers looking to rebuild their credit, those with thin credit files or those that may have been previously unbanked or unscored. 

“Using alternative data could result in improved credit scores for those consumers with responsive repayment of payday loans,” explained Oakes. “Adding this data to the mix could paint a more accurate picture for those who don’t have data traditionally used to describe their financial health, which, in turn, could lead to better loan terms and interest rates from lenders in the future.” 

Equifax Canada is committed to exploring new ways to drive critical financial opportunities to help people live their financial best and create financially inclusive communities.

 

About Equifax

At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.ca.