Australia-based digital lender MONEYME has officially launched a new credit score product following a successful beta trial period. The trial saw over 37,000 new customers looking to discover their score despite no marketing taking place at the time.
MONEYME’s new product enables customers to check their credit scores for free without negatively affecting them. The feature also offers users the ability to see what is on their credit file and how it is affecting their scores.
Additionally, users can view how their score has changed over time while also gaining a better understanding of their chances of approval for credit products offered by MONEYME.
The new credit score product is available in the MONEYME app. The feature addition leverages credit file data from credit reporting company Experian.
The move by the Australian government is publically supported by MONEYME which explained that increased transparency would enhance responsible lending practices. The company also explained the move would benefit the accuracy of credit assessments.
Clayton Howes, CEO and managing director of MONEYME, urged people to act on the news. He explained: “Given Treasury’s review of BNPL regulation, we’d love to see BNPL users, in particular those with multiple accounts, take some steps now to better understand how they can improve financial behaviours and also their credit score.”
Levelling ‘the playing field in the industry’
Clayton Howes, also commented on the timing of the launch. Howes said: “We are strong believers in responsible lending and responsible borrowing, for the sake of both consumers and lenders alike. So we welcome the Federal Government’s intention to improve consumer credit regulation, and in particular the proposals that would see BNPL providers subjected to the same obligations as other lenders.
“Accurate and extensive credit reporting allows lenders to be more accurate in our credit decisioning and, in turn, helps to protect consumers. The limitation of BNPL data in credit reporting creates a blind spot for lenders and hinders us from getting a holistic view of a person’s indebtedness and ability to meet repayments.
“Some of the changes proposed by the Treasury would also level the playing field in the industry. Similar onboarding requirements to other credit products in the market would impact the ease at which consumers can access BNPL, which might see consumers shift away from BNPL and back to credit cards. With this advantage no longer in play, it would also make it less attractive for merchants to offer it at the point of sale, as credit card merchant fees are often a cheaper option.”