Creditinfo Credit Bureau confidently accepted as a core business tool by Tanzanian Banks & MFIs
Creditinfo Tanzania, the leading credit bureau in Tanzania, recently conducted a survey amongst financial and non-financial institutions, aimed at finding out the level of understanding and acceptance of credit information sharing system. It proved to be highly successful with responses from over 130 professionals representing banking, microfinance, insurance, mobile, manufacturing amongst many other sectors of the economy.
In a series of three surveys, over the last two years, it is clear that pulling a credit report for a new loan has moved from an occasional option, in early 2014, to an absolute policy at the end of 2015. It goes in line with a high level of understanding of credit bureau concepts and the part their play in credit risk management process.
Are you familiar with the credit bureau concept?
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In the recent survey, 98% of respondents indicated taking a credit report on each new credit application. This figure has increased from 45% on the last survey, conducted in June 2014.
Does your institution use credit reports from CRB prior to granting a loan?
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The institutions confirmed that the Creditinfo Credit Reports are being used in all segments of the market loans, mortgage, SME, business loan, and others – as represented in the table below.
For what sort of products do you use credit reports?
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The majority of the respondents (85%) confirmed that the usage of credit bureau data is part of their internal KYC and credit application process. As a result of this new information which enables lenders to make significantly better decisions 80% expect defaults rates to fall in the next 12 months. Creditinfo Tanzania have already been informed that many “early adopters” of Creditinfo credit bureau are seeing significant reductions in default rates from effective use of Creditinfo credit bureau.
As the market becomes more aware of the positive impact credit bureaus make on the overall profitability of their businesses more and more customers are looking into more advanced products Creditinfo credit bureaus have on offer. There is a growing interest in scoring and monitoring services, with some institutions already actively using credit scorecards in their credit risk assessment process. Simply put a credit score is a numerical expression based on a level analysis of a person’s credit files (and various other information), to represent the creditworthiness of the person. Recent validation analysis conducted by Creditinfo shows the credit score is performing very well in identifying high and low credit risk applications for credit. These statistics demonstrated the power of the Creditinfo Predictor credit score and the potential benefits that can be made to the business portfolios.
Monitoring services allow on the other hand effective follow up of your accounts, with automated notification service, which informs about any changes on the accounts.
Is a credit report part of the internal KYC and credit policy process?
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This survey is an industry service provided by Creditinfo Academy.
MORE INFORMATION
For full details on Creditinfo Tanzania services and copy of the survey please contact Van Reynders.
For more information about Creditinfo Academy, please contact Agata Szydlowska.
Agata Szydlowska
Head of Financial Inclusion and CRB Awareness – Africa
Creditinfo Group hf
Email: agatas@creditinfo.com
Mobile: +254 702997588
Skype: agatacreditinfo
Van Reynders
Head of Sales – Creditinfo Tanzania
Email: v.reynders@creditinfo.co.tz
Tel: +255 22 212 7263
Mobile: +255 76 284 8320
Skype: Van.Reynders
COMPANY PROFILE
Creditinfo Tanzania is the first licensed and operational credit reference bureau in Tanzania. We received our license from the Bank of Tanzania early June 2013. Our core services to cover each stage of the customer life cycle. Our services help banks and other credit providers to evaluate prospective customers, monitor performance of existing ones and manage the debts that they may have incurred. We collect data from as many sources as possible, process and make it available in a useful format to subscribers who have a rightful reason to use that data. We provide these services in accordance with the relevant legal framework provided by the Bank of Tanzania. Creditinfo Tanzania provide quality data from the Bank of Tanzania’s Credit Reference Databank; automation of the capture and decisioning of new credit applications, development of bespoke scorecards and credit risk management consultancy.
Creditinfo Academy is a skills development and training provider that delivers accredited, generic and customized training services related to credit lifecycle management. The focus at Creditinfo Academy is to provide training for clients in need of skills development interventions to improve operational efficiency and overall business performance.
