Hometrack and Callcredit win HSBC Group contract
Hometrack Data Systems, the UK's leading supplier of automated valuations and risk analytics, together with Leeds-based credit reference agency Callcredit have today announced the award of a contract to supply the HSBC Group with Equity Indicator, a ground breaking product, designed specifically to assess an individual's overall equity status.
Equity Indicator provides the HSBC Group with the ability to view the amount of equity any customer has in their home. The equity assessment allows for both secured and unsecured borrowing and combines the power of Callcredit's bureau information with Hometrack's automated property valuation.
"Equity Indicator falls very much in line with recently published OFT guidance aimed at counteracting irresponsible lending. As part of their recommendations, the OFT state that "lenders should make a 'reasonable assessment' of whether a borrower can afford to repay their loans."
David Catt, Hometrack's Chief Operating Officer, comments,"Hometrack has worked closely with HSBC and Callcredit for the last two years in developing and building Equity Indicator. An invaluable product, Equity Indicator will provide HSBC with the ability to determine an individual's credit worthiness and their total equity position. This is the first time a lender has been able to draw such a precise picture of the financial status of every single customer. As such it has been designed to play an instrumental role in customer and risk management processes as well as significantly aiding arrears handling."
Graham Lund, Callcredit's Managing Director comments, "Equity Indicator is a powerful new tool that will give our clients further help in managing their businesses at this challenging time. Market leaders have joined forces in working together to develop a product that supports the consumer through adding to the 'Responsible Lending' array of information available to lenders. The quality of the product is also evidence of what can be achieved when companies with different but complementary specialisms work together."
Mark Thundercliffe, Head of Retail Credit Risk at HSBC adds, "We have enjoyed working closely with Callcredit and Hometrack on this development and look forward to taking full advantage of the significant risk management benefits this will deliver across the business. Equity Indicator enables HSBC to make better informed and more robust lending decisions. We believe this to be the next generation of credit profiling."