Equifax® (NYSE: EFX) a global data, analytics and technology company today announced that the company has signed a definitive agreement to acquire Teletrack®, a U.S. leader in alternative credit data, from CoreLogic®. The combination of Teletrack with the Equifax DataX business creates a leading U.S. specialty consumer reporting agency, with data on more than 80 million thin-file, unbanked, underbanked and credit rebuilding consumers. This powerful source of information will enable lenders and service providers to access more alternative data sources in credit decisioning that can help open new consumer financial opportunities.
“Our strong financial performance, balance sheet, and cloud investments allow Equifax to reinvest our cash flow in this accretive and strategic acquisition of Teletrack that will expand the breadth of differentiated data assets that only Equifax can provide,” said Mark W. Begor, CEO of Equifax. “The acquisition of Teletrack is yet another significant investment in our United States Information Solutions (USIS) business that will provide new value to our customers and further establish Equifax as a leading provider of alternative data for use in credit decisioning.”
Teletrack has been a leader in the alternative credit data market for more than 30 years. With the ability to receive real-time updates, the Teletrack database can accept new inquiries and a continuous stream of consumer loan performance data from businesses nationwide, including small-dollar installment lenders, rent-to-own businesses, furniture financing companies, auto financiers and subprime credit card issuers. This data can help create a more robust personal financial profile for unbanked or underbanked individuals when they apply for loans and other services.
“The combination of Teletrack and DataX creates a leading specialty consumer reporting agency that will leverage the power of our Equifax cloud investments to make non-traditional credit information more accessible to our U.S. financial institution and service provider customers,” said Sid Singh, president of Equifax USIS. “Bringing the combined DataX and Teletrack data assets to our unique data fabric powered by the Equifax Cloud will enable us to create new solutions that can be used in conjunction with bank transaction data, telco and utility payment history and other alternative data assets to create more products to bring unbanked consumers into the financial mainstream.”
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According to the Federal Reserve, 63 million American adults are either unbanked or underbanked. These individuals potentially face higher costs for borrowing money and barriers to housing and employment. Helping more of these consumers obtain access to mainstream financial services and products requires new insights into individual financial history. More data reveals more scorable consumers, more opportunities for lending offers, and higher approval rates. Equifax research shows that alternative data and technology can enable an additional 21 percent of thin/invisible consumers to become scorable.
“CoreLogic and Equifax have a shared commitment to the development of solutions that help people live their financial best, which in turn strengthens our local communities,” said Frank Martell, president and CEO at CoreLogic. “Enabling broader access to alternative data insights is critical towards driving financial inclusion in the United States. The Teletrack team is excited to join forces with DataX to help more consumers obtain access to the credit they need at a time when they need it most.”
The transaction is subject to customary closing conditions and regulatory review and is expected to close in the second half of 2021. All Teletrack employees are expected to join the Equifax USIS business unit.