British information services company Experian has received approval from the Australian Competition & Consumer Commission (ACCC) to establish a joint venture company, Experian Australia Credit Services.
The joint venture company is formed with six of Australia’s major financial institutions including, ANZ, Citibank, Commonwealth Bank of Australia, GE Capital, National Australia Bank and Westpac Banking Corporation.
Each of these six financial institutions holds a minority stake in the new company and Experian will be responsible for all operations of the credit bureau.
Experian managing director for Australia and New Zealand Kim Jenkins said today’s ACCC decision paves the way for Experian to establish a new credit bureau in the market and introduce valuable competition.
"Experian’s entry to the Australian credit reporting services market will deliver benefits to all credit granting organizations and consumers, encouraging higher levels of innovation, further improving standards and better industry services," Jenkins said.
The new consumer and commercial credit bureau will provide consumer and business credit information services to credit providers.
According to Experian, the new company will help lenders assess risk and allocate credit more efficiently, in addition to protecting consumers against over-indebtedness by enabling responsible lending by credit grantors.
Experian said it will operate a fully inclusive credit bureau, which means that every authorized credit grantor will have the opportunity to contract with Experian to share and access data with the bureau, in accordance with legislation.