Equifax Inc. (EFX) recently entered into a partnership with Exchange Solution Inc. (ESI). As per the terms of the partnership agreement, both the companies will jointly provide solutions to financial institutions to engage in a two way dialogue with their customers and provide customers the opportunity to cross sell their product and enhance their customer service capabilities.
The Web 2.0 platform of Exchange Solution Inc. includes a software application named ‘exchange agents’ that enables the customer to obtain special products and services from the company, which in turn can be utilized by their customers. So this creates good business for both the parties involved. By using this new capability, the financial institution can retain customers, offer competitive pricing of products and improve the quality of services, which should lead to greater customer satisfaction.
This apart, the new solution combines ESI’s technology with Equifax’s rich data and credit risk analysis solution, InterConnect. With the help of InterConnect, Equifax can optimally use and change the business rules, keeping the customer needs in mind. Apart from the abovementioned benefits, this will help new client acquisition and increase market responsiveness. This solution will also be offered to companies in the retail and telecommunications industries.
We believe that at a time when financial institutions are negatively hit by the worldwide economic downturn, this kind of innovative solution can help companies generate greater business volumes and win and retain existing customers. On the other hand, we expect pricing to be a key issue, as financial institutions are following a cost control policy and won’t really pay a premium pricing for any product or service. Equifax’s high dependence on the financial services industry has been a cause for concern, but the company is making an effort to diversify into other industries which may prove beneficial for its business.
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