New Zealand
New Zealand New Zealand
Consumers make most of their payments by internet banking
  • 74%
    BFSI
  • 70.5%
    TELCO
  • 54.5%
    RETAIL
  • 46.5%
    BFSI
  • 39.6%
    TELCO
  • 40.7%
    RETAIL
  • A higher percentage make payments via internet banking to banks and insurance companies, telcos, and retailers, respectively, compared to the regional average
  • Impact: Anti-fraud capabilities critical to the increased digital transaction frequency and customers’ trust in banks
Australia
Australia Australia
Consumers are most satisfied with the post-fraud service of banks and insurances companies
  • More than 70% satisfaction rate compared to 59.7% on average
  • Impact: Increased trust in BFSIs
Indonesia
Indonesia Indonesia
Consumers that encountered most fraud incidents in the past 12 months
49%
34.7%

AP Average

  • 49.8% have experienced fraud at least once compared to 34.7% on average
  • Impact: Overall anti-fraud capabilities need improvement
Singapore
Singapore Singapore
Consumers have the highest trust towards government
AP Average
  • 75.5% choose government agencies, compared with 51.7% on average
  • Impact: Trust of personal data protection is centered around government agencies
Vietnam
Vietnam Vietnam
Consumers encountered most fraud incidents in retail and telco during the past 12 months
  • 55%
    TELCO
  • 54.5%
    RETAIL
  • 32.8%
    TELCO
  • 35.2%
    RETAIL
  • 55% and 54.5% have experienced fraud at least once in retail and telco, respectively, compared to 32.8% and 35.2% on average
  • Impact: Overall anti-fraud capabilities need improvement
Thailand
Thailand Thailand
Most Thai consumers believe speed and resolution are severely lacking (response/ detection speed toward fraud incidents)
AP Average
  • 60.5% think it is most important, compared to 47.7% on average
  • Impact: Response time as one of key factors to fraud management to retain customers and gain their trust
India
India India as standalone
Consumers have the largest number of shopping app accounts in the region
India
  • Average of three accounts per person
  • Impact: Highest exposure to online fraud
Hong Kong
Hong Kong Hong Kong
The least percentage of consumers with high satisfaction level toward banks and insurance companies’ fraud management
AP Average
  • Only 9.7% are most satisfied compared to 21.1% on average
  • Impact: effective response towards fraud incidents to be improved
China
China China
Consumers are the most tolerant toward submitting and sharing of personal data
AP Average
  • 46.6% compared to the AP average of 27.5% are accepting of sharing personal data of existing accounts with other business entities
  • Impact: higher exposure of data privacy and risk of fraud
alert
Japan Japan as standalone
Consumers most cautious on digital accounts and transactions
50.7% Actively maintain digital accounts’ validity
27% AP Average
45.5% Do not do online bank transfers
13.5% AP Average
  • More than 70% did not encounter fraud incidents in past 12 months, compared to 50% on average
  • Impact: Relatively low risk of fraud

Managing credit post a divorce: A separation of financial lives

Managing credit post a divorce: A separation of financial lives

Divorce or a legal dissolution of a marriage often leaves many couples in tatters, not alone from emotional issues, but by complex financial matters that could inflict a lasting impact on future lives unless they carefully contemplate, sort and manage them at the earliest.

 

While it is imperative to be well-informed of your own financial profile, it is far more significant to understand the implications of a separation - in situations wherein you have an obligation - either as a joint applicant or a guarantor since it could leave a long-term impression on your credit worthiness.

 

Often, couples seeking divorce would sign all basic legal documents including those to split their key assets though many tend to overlook their jointly held financial obligations. In such a scenario – wherein divorcees fail to keep their repayment deadlines or have plenty of overdue payments - it can utterly mar their financial profile. And if either party chooses to ignore swelling financial obligations or becomes unsuccessful in creating separate accounts, it will become difficult for the other to obtain credit, or at times, even to open a bank account.

 

Thus, it is good to sort out your individual finances even if it is complicated. Obviously, most of the lenders are used to such situations hence would be willing to help out. Keep them informed of your changed situation as it is in their interest to make certain that their loan is not unheeded and that all parties are aware of their respective liabilities. You are legally responsible for another person’s debt - if it is also in your name or that you have agreed to be a guarantor.

 

Here are few simple steps that can improve your credit profile post the divorce:

 

#1 Check credit-reports and credit scores 

If an individual is not financially dependent on the ex-spouse, he or she should verify loan accounts – both individual loans and joint accounts - to evaluate personal liabilities. If a couple is in the final stages of divorce, they should individually inform their lenders to update their records. Even though large loans like home loans could be difficult to refinance, one might have to work with the ex-spouse to pay off a joint loan and then apply for a new one. It is important to keep in mind that an ex-spouse's actions can affect the partner’s current credit score.

 

#2 Dissolve all joint cards and accounts

Usually, married couples apply for loans together. In the event of a divorce, this would result in them having joint loan accounts and credit cards or being guarantors to each other’s loans. Post the divorce, it is imperative to ensure that all joint credit card accounts are dissolved - after paying off loans, if any. One should remember that when lenders share information on a joint loan or list the guarantors, the information is reflected on one’s credit report along with the complete credit history. This, in turn, affects the individual credit score.

 

#3 Establish credit independence

The first step to safeguard financial freedom is to rebuild the individual credit history. It is advisable to keep the credit limit low to ensure that the spending is within the individual limits which would boost one’s credit health. Paying bills on time and building debt in a rational manner will ensure a good credit history over a period of time.

 

#4 Re-create individual credit history 

The key to building a good credit score is to show that one can manage his or her credit responsibly. This includes borrowing only the desirable amount and servicing it dutifully. A big step towards building your finances is by creating individual accounts. Markedly, one’s financial behaviour – especially in the immediate two months after the divorce – gives ample indication to a person’s credit risk.

 

Contributed by Mr. Mohan Jayaraman, Managing Director, Experian Credit Bureau, India

Read full article

Mohan Jayaraman

By Mohan Jayaraman

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