Top trends that will shape banking in 2022
We sat down with our Direct Markets Director at Creditinfo Group, Samuel White, to discuss some of the key trends that will shape banking in the MENA and Asia region. These were some of his thoughts:
New market players from non-traditional lenders such as telco or payment providers
We are seeing an increasingly number of non-banks entering the markets. There has been a clear sign that these companies have a wealth of internal data through their platforms and usually e-wallet transactions. It has been proven that this data is extremely valuable during the risk assessment process.
SME finance
SMEs are playing an instrumental role in local economies but still struggle to receive the access to banking products in a timely fashion. In the region every country is looking at how better to serve these customers and provide them with the solutions they require.
Digital Banks, Neo Banks, Born Digital Banks
Many of the traditional lenders are based on legacy technologies and we have seen an accelerated approach to digital transformation over the last 2 years. We have also seen some banks create new digital arms to their organization setup with new technology away from legacy portfolios. These Born Digital Banks are increasing in the region, and anybody left behind can expect to lose some market share in the future.
BNPL
Buy Now Pay Later (or as some are calling it Save now pay later) is not a new concept but there is no doubt it is growing with popularity. The demand for flexible payment offerings is at an all-time high. Typically, these smaller value loans are based on impulse buying so lenders must make sure they have the process in place to offer instant decisioning.
We also asked him how Creditinfo is playing a role in shaping these trends:
How is Creditinfo helping banks lead in the digital era?
At Creditinfo we are focusing on helping banks streamline and improve the credit process across the full credit lifecycle, from origination through scoring, risk, decisioning and portfolio management. We are offering enhanced digital channels to meet the customer demands and reach the underserved or unbanked segments. We recognize it has become more accessible for individuals and SMEs to make use of digital financial services and by working with Banks we can develop software and applications to deliver services that are more transparent and automated.
What is Creditinfo’s business model and how do you see this model shaping the banking industry?
Creditinfo is a provider of credit information and risk management solutions worldwide, one of our primary goals is to help facilitate access to finance. We have built credit bureaus globally and across different markets, giving us key insights and knowledge into best practices. Creditinfo has a vision to create successful partnerships with lenders, governments, central banks to help increase financial inclusion and generate economic growth by allowing credit access for individuals and SMEs.
Creditinfo wants to continue building products and working with partners to add further solutions and data to enable lenders to further lend in a responsible fashion. Lenders are shifting their attitude towards FinTechs to keep pace with change and remain competitive. There is a huge variety of FinTech offerings available today using wide range of data that’s delivered through applications to provide lending decisions in only a few seconds.
Creditinfo Lithuania invests 1 Million Euros in new Credit Bureau System
The credit bureau is carrying out strategical changes and gathering resources inside of the group of companies.
In implementation of the development plans and presentation of new services, the credit bureau “Creditinfo Lietuva“ informs having invested one million euro into a new information system of the credit bureau and that it is going to introduce several innovative products soon. The credit bureau is implementing strategical changes – it is gathering all the data resources and processes inside the group of companies “Creditinfo Lietuva“ for more effective administration.
Last March, “Levine Leichtman Capital Partners” (LLCP) became the new main shareholder of the group of companies “Creditinfo”. It announced its plans to grow and to expand the activities of credit bureaus in the international market and to invest into development of new data-based solutions. The investor with solid international business management experience focuses on the information technologies and automated solutions.
“We have a good possibility to start providing more new services in Lithuania (as in other advanced financial markets), to start providing more new services that would enable the creditors to make faster and more accurate decisions, and the consumers to receive financing more expeditiously, – says Mr. Aurimas Kačinskas, CEO of “Creditinfo Lietuva“. – The services of credit information, risk management and data analysis that we are providing demand for bigger collection of the resources in one place, thus, we have invested into development of the credit bureau’s system of a new generation, and we have expanded the available IT platform. This allows controlling quality of the services better, providing them continuously, and expanding the suggest scope of services by innovative products.”
Automated solutions and artificial intellect data services will be introduced
The services of “Creditinfo Lietuva“ that will be launched soon will help the clients to use more automated solutions and products of the credit bureau not only in Lithuania, but also in other countries, and to evaluate creditworthiness of borrowers, and to control the financing risks. It is planned to introduce the innovations in the first quarter of this year already.
The pending changes are the part of strategy of the new main shareholder of the group of companies “Creditinfo”, LLCP – to apply the international business management experience for the activities of credit bureaus in more than 30 countries. The company of private capital, “Levine Leichtman Capital Partners” operating for 38 years, is managing 14 investment funds and has invested into 90 companies in the United States of America (USA) and Europe.
The international group of companies “Creditinfo“ includes the credit bureau operating in Lithuania, “Creditinfo Lietuva“, that was established in 2000. The credit bureau has been collecting and managing the biggest data system on creditworthiness of the Lithuanian companies and residents, and providing services of credit risk management, rating creation and modelling for more than 20 years. The company has 43 employees and its annual income in 2020 amounted to 5,6 million euro.
More information:
Aurimas Kačinskas, CEO of “Creditinfo Lietuva”
Aurimas.Kacinskas@creditinfo.lt
Tel: +370 618 10110
Creditinfo Gulf and Tech Access Strategic Partnership
Creditinfo Gulf and Tech Access joined forces and announced a strategic partnership to enhance risk assessment and facilitate access to finance in the MENA region.
Both companies will help Lenders and Tech firms streamline the risk assessment process and increase credit quality, earnings and growth while mitigating credit risk.
Creditinfo is a leading service provider for credit information and risk management solutions worldwide. It has established more than 33 credit bureaus in mature and emerging markets over 4 continents, thus tangibly contributing to growing and strengthening economies.
Tech Access has become an acknowledged industry leader in the ICT enterprise distribution market in the MENA region. Providing technology solutions to large Govt., private and public corporations across UAE, KSA, Pakistan, Levant & Africa regions.
“Our partnership, comprised with Creditinfo Gulf, is to enhance our local and regional coverage on credit information and fintech service provider across the globe, offering cutting-edge analytical tools and software solutions for the financial industry for efficient credit risk and strategic decision making” commented Jawwad Rehman, CEO Tech Access.
“This announcement marks another significant milestone, and we are excited to start this new partnership with Tech Access to provide full potential of intelligent information, software and analytics solutions. Supported by international know-how and local market support, setting a remarkable high bar in the MENA region. We look forward to working with Tech Access and Financial Lenders to deliver these capabilities.” commented Gary Brown, Managing Director Creditinfo Gulf
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Creditinfo awarded contract as the service provider for the Credit Information System of Seychelles
Creditinfo to establish a new Credit Information System for the country.
London, UK – 11th January 2022: Creditinfo Group, the leading global credit information and decision analytics solutions provider, today announced that it has signed a contract to design, implement and support a new Credit Information System (CIS) for the Central Bank of Seychelles (CBS).
The contract – which will see Creditinfo’s solution rolled out over the next 12 months – makes CBS the 10th central bank to procure a credit information solution from the company.
At the end of 2020, the Seychelles population stood at 98,963, out of which there were approximately 20,099 active retail credit consumers. Seven commercial banks, all licensed and regulated by CBS, are currently the main institutions granting credit facilities to customers. A local credit union and two micro-finance institutions, also supervised by CBS, are the other major providers of credit facilities.
One of the recommendations in Seychelles’ Financial Sector Development Implementation Plan adopted in 2014 was the need to enhance the effectiveness of the existing CIS operated by CBS, inclusive of broadening the scope for the capture of information across all relevant credit providers. In this context, CBS initiated a tender process in April 2021, inviting credit information solutions providers to submit proposals to develop and implement a new CIS. The contract has ultimately been awarded to Creditinfo.
The solution will include scoring, benchmarking, and the implementation of external data sources. Creditinfo will also provide training, consultancy and ongoing support services for the management of the system over the next five years to ensure that CBS employees, local lenders and data providers have the necessary knowledge to make the new CIS a successful endeavor.
Once established, the new CIS will support existing lenders and, over time, onboard other credit data providers, including fintech companies, state-owned enterprises, hire purchase providers, credit sales and financial leasing companies, insurance companies, amongst others. Hence, the new and expanded CIS will support the incorporation of additional data to supplement traditional sources and ultimately provide more individuals and businesses with the financing needed to realize their goals and grow the economy. In addition, the enhanced system will assist the overall mitigation of credit risk.
Samuel White, Regional Director at Creditinfo commented: “While the Central Bank of Seychelles currently has a credit information system in place, it doesn’t meet the market needs of today, and certainly doesn’t enable it to realize the future ambitions of the country and its economy. We’re delighted to win this tender to put in place the technology and knowledge base to help open doors for individuals and small and medium-sized enterprises by increasing access to credit.
We see huge untapped potential in the market, and we are excited to work with our 10th central bank customer to establish a credit information system fit for the future. Once operational, this new system will enable more responsible lending by empowering local credit providers with the data they need to ensure they manage lending risks appropriately, ultimately boosting access to finance for individuals and small businesses.”
Caroline Abel, Governor, Central Bank of Seychelles, said: “Seychelles has a vibrant financial services ecosystem, and access to credit is an important aspect as we look to boost financial inclusion in the market and look at ways to grow our economy. At the same time, lenders should have access to appropriate data to have a better overview of the creditworthiness of borrowers, be able to assess credit risks and make sound financial decisions. Information collected through such a system can also be used for analysis and monitoring in the areas of financial inclusion and stability.
The CBS is therefore looking forward to the collaboration with Creditinfo over the next five years to have a modern credit information system that is in line with industry standards, ultimately assisting the development of the credit environment and overall financial sector.”
Paul Randall, CEO of Creditinfo Group added: “Creditinfo has been effective in strengthening the financial infrastructure in numerous countries across the world, and working with central banks to create a robust and fair way to assess risk and credit affordability. We are looking forward to supporting the Central Bank of Seychelles with their implementation of a future-looking credit information solution and widening access to the information and financing that will be key to future business and economic growth in the country.”
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About Creditinfo
Established in 1997 and headquartered in London, UK, Creditinfo is a provider of credit information and risk management solutions worldwide. As one of the fastest-growing companies in its field, Creditinfo facilitates access to finance, through intelligent information, software and analytics solutions.
With more than 30 credit bureaus running today, Creditinfo has the largest global presence in the field of credit risk management, with a significantly greater footprint than competitors. For decades it has provided business information, risk management and credit bureau solutions to some of the largest lenders, governments and central banks globally – all with the aim of increasing financial inclusion and generating economic growth by allowing credit access for SMEs and individuals.
For more information, please visit www.creditinfo.com
Media Contacts:
Matt Silver
Babel PR for Creditinfo Group
+44 (0)20 7199 3997
Creditinfo awarded license to become Malta’s first Credit Bureau
Creditinfo Malta will help local credit providers take a more intelligent approach to risk and boost financial inclusion.
London, UK – 21st December 2021: Creditinfo Group, the leading global credit information and decision analytics solutions provider, today announced that its Maltese business has been granted the license to act as a Credit Reference Agency, officially recognizing the Creditinfo Malta as the first licensed credit bureau in Malta.
This license will enable the company to launch a credit scoring system for Malta, and collaborate with local banks and lenders to create dedicated scoring products and strategies, tailored to their needs and risk appetite.
Consumers and SMEs in smaller markets like Malta are less likely to obtain financing than those in larger market with more established financial infrastructure, due to lack of information about their credit history. A credit reporting system – like the one Creditinfo is putting in place – helps to provide the information on borrowers and their financial situation lenders need to derisk the system and give them the confidence to widen access to financing.
The deal, which will see Creditinfo play an increasingly important role in the Maltese market, strengthens the company’s relationships with two key local authorities, the Malta Business Registry and the Malta Financial Services Authority, who are equally invested in growing the Maltese economy and boosting financial inclusion.
Clifford Debono, Country Manager of Creditinfo Malta commented: “A formalized credit reporting system in Malta should help open doors for small and medium-sized enterprises that have long been closed, by increasing access to credit. That will in turn enable them to grow, create jobs and benefit the overall economy.
“We see huge untapped potential in Malta, and we’re excited to establish the country’s first ever credit bureau, which will be a key driver of digitalization in Maltese financial services., ultimately boosting access to finance for individuals and small businesses.”
Paul Randall, CEO of Creditinfo Group added: “Creditinfo has been effective in strengthening the financial infrastructure in numerous countries across the world. We’re looking forward to seeing how the local lending landscape develops as we roll out our market leading credit bureau solution in Malta, derisking the financial system and widening access to the financing that will be key to future business and economic growth in the country.”
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About Creditinfo
Established in 1997 and headquartered in London, UK, Creditinfo is a provider of credit information and risk management solutions worldwide. As one of the fastest growing companies in its field, Creditinfo facilitates access to finance, through intelligent information, software and analytics solutions.
With more than 30 credit bureaus running today, Creditinfo has the largest global presence in the field of credit risk management, with a significantly greater footprint than competitors. For decades it has provided business information, risk management and credit bureau solutions to some of the largest, lenders, governments and central banks globally – all with the aim of increasing financial inclusion and generating economic growth by allowing credit access for SMEs and individuals. For more information, please visit www.creditinfo.com
Media Contacts:
Matt Silver
Babel PR for Creditinfo Group Creditinfo@babelpr.com
+44 (0)20 7199 3997
New Creditinfo Jamaica Country Manager encourages Jamaicans to be proactive
Christopher R. Brown who was appointed as the new Country Manager for Creditinfo Jamaica on August 11, 2021, is encouraging Jamaicans to “be vigilant in guarding their credit history and their credit data and in managing them” to ensure there are no surprises when individuals or businesses seek to access services which require a credit report.
Brown, in an interview with the Jamaica Observer, reminded Jamaicans that they are entitled to one free copy of their credit report each year by law. He said Jamaicans should go to any of the credit bureaus and request their credit report each year and scrutinise it for “errors or outdated information” and where these are found, “they can then lodge a formal dispute after which it is the responsibility by law for the institution that they have lodged the complaint against, to investigate and correct it, once it is proven that it is an inaccurate record that is kept for that individual”.
He said errors can occur in the case where people may “have closed an account and completed payments on a loan account or a mortgage account, or a hire purchase agreement, and unfortunately it is not updated in the system and it is negatively impacting their credit score. So even after you have closed an account or some contract, or some credit cards or loans that you have paid, it is good to check to ensure those information are updated in the system so that your credit report is always current and up to date, because managing your credit is very essential in these days where credit is king and so fundamental to economic livelihood and, by extension, economic growth.”
He told Sunday Finance that if the entity against which the error complaint is brought, investigates and validates that there was an error, the law requires an updated credit report to be generated and dispatched to the institution which the individual had sought to do business with in the last six months. Whether terms or conditions of any agreements change after the updated information is then to be negotiated with the entity with which the individual is doing business. He stressed the importance of having the records updated because entries stay on the report for seven years.
Brown said getting Jamaicans to be vigilant in guarding their credit data is the message Credit Info Jamaica is pushing.
Credit Info Jamaica is the first credit bureau that was established in the country following the passage of the Credit Reporting Act in 2010. The company, which started its Jamaica operation in 2011, is part of a global network which has operations in Europe, Africa and sections of the Caribbean. In the region it also has facilities in Barbados, Guyana and the Eastern Caribbean.
“We see ourselves as an important part of the local financial infrastructure…part of the push for economic growth,” he outlined. Credit bureaus “have been a fundamental part of the whole improvement in how individuals and institutions now manage their risk in an integrated way. Whereas in the past, institutions would have to take the information that is given to them either by the client and other sources that they have to use intelligence to gather, now they can get it instantly, automated and at the click of a button, they can have the information of a customer sitting infront of them. It makes the application process more efficient and faster. It allows institutions to know how and who they can market their products to and what type of products they can market to individuals. It allows them to determine the credit terms that they will offer based on the credit history associated with the individual,” he added. He indicated that this has seen Jamaicans being more responsible because the list of institutions which credit bureaus collect information from to create a credit profile on an individual is extensive.
Article was originally published on the Jamaica Observer
Edwin Urasa appointed new CEO of Creditinfo Tanzania
New CEO Creditinfo Tanzania
Press Release
London, UK.
30/11/2021
Creditinfo Group is pleased to announce the appointment of Mr. Edwin Urasa as new CEO and Executive Director of Creditinfo Tanzania effective 01st November 2021. He is replacing Mr. Van Reynders whose tenure ended in April 2021.
Edwin brings 10 years of experience from the local banking industry having spent significant time around credit and risk management, recently before joining he was responsible for the Retail and Micro-SME segment at NBC Bank as Head of Retail Credit.
“I am especially excited to join Creditinfo Tanzania, which has been in operation for the last 9 years and has over the years continued to grow rapidly enabling small to large organizations effectively manage risk and support the government and banking community providing responsible lending in Tanzania. I am looking forward to expanding the companies’ product portfolio and services through application of best practices while leveraging Creditinfo global knowledge and expertise”.
“We are very excited to have Edwin Urasa join us as the new Creditinfo Tanzania CEO. With his vast knowledge and experience in the Tanzanian banking and credit industry, we have no doubt that he will lead Creditinfo Tanzania to greater heights and move the company’s journey forward in pushing our innovative solutions to the Tanzania market as well as pushing one of our core pillars – financial literacy, to the public at large”, says Paul Randall, CEO of Creditinfo Group.
Edwin holds a Bachelor Degree in Commerce (Hons), Majoring in Finance from the University of Dar es Salaam, an MBA from Edinburgh Business School at Heriot-Watt University-UK and has also several certifications namely, a Mortgage advisor (CeMAP)-UK, Modules in Commercial Credit from Moody’s Analytics-USA, and Risk Management from City University -UK.
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PR contacts:
Marketing Manager/ PR for East Africa
Phidi Mwatibo
Email: Phidi.mwatibo@creditinfo.com
Analysis of the Lithuanian construction sector
Financial and performance indicators in the construction sector reveal positive rather than negative trends. The boom in real estate emerging in the time of the pandemic has remarkably boosted the sectoral activity (during the first 6 months of this year alone the volume of constructions works grew by almost one fifth) and positively reflected in performance indicators of most of the companies. Sectoral earnings have been rapidly growing both on the domestic and foreign markets. After discounting the impact of seasonality and working days abroad, the volume of construction works is an increase of 21.5% year-on-year. The number of construction companies have been mushrooming, accounting for an increase by a third during the second quarter of this year compared to the previous year.
Financial statements filed by construction companies show that the number of construction companies in Lithuania in 2021 has grown by additional 531 from 15,784 to 16,316 (an increase of 3.4%) year-on-year. A very similar pace of growth (4.1%) was observed in the average corporate earnings (from EUR 809,994 to EUR 842,872). In terms of the staffing level, though, it has decreased slightly from 102,072 to 101,833. Despite a favorable situation, managers of construction companies are very cautious about the growth in the number of staff due to higher labour and other construction costs. Due to a more pessimistic mood in the sector, during summer this indicator started to decrease.
Another important positive factor is the decreasing number of debts and their aggregate values. For instance, during pre-pandemic August 2019 the number of corporate debts in construction industry stood at 12,336, with their aggregate value of EUR 128.7 mln. At the same period in 2020 the number of corporate debts stood at 11,539 compared against a reduced value of debt of EUR 94.3 mln. Although at the end of last August the number of corporate debts in the construction industry grew once again to 12,055, the aggregate debt value accounts for EUR 96.6 mln.
Some positive trends may be seen in the solvency of the construction industry. For instance, a year ago 23% of companies in this sector belonged to the high or highest group of bankruptcy risk, whereas this year the number of such companies dropped to 20%. In terms of delayed payments, some improvement may be observed too: last year the number of companies within the group of high and highest risk of delayed payments accounted for 47%, compared against 37% this year.
A number of construction companies going bankrupt has been decreasing steadily. In 2017-2020 the number of bankruptcies dropped from 366 to 163, whereas the updated statistics for this year give a solid ground to expect a further similar decrease in the number of reported bankruptcies.
Despite the reported drop in earnings in 2020 from 10% to 4% in comparison to 2019, other performance indicators in the construction industry have improved. For instance, the corporate sales median increased by 16% (from EUR 143,155 to EUR 166,133), the quick ratio has grown from 1.86 to 1.95, while the profit margin before tax increased from 1.25 to 1.35. The equity ratio has improved from 43.83 to 46.23, the accounts payable turnover decreased from 134 days to 128 days, whereas the accounts receivable turnover shortened from 57 to 51 day. EBITDA grew from 9.1 to 12.3%.
Jekaterina Rojaka,
Head of Business Development and Strategy, Creditinfo Lithuania
Creditinfo Lithuania included immunization levels into its list of corporate indicators
After the Department of Statistics launched publication of immunization levels in specific companies, credit office Creditinfo Lithuania immediately included this indicator into its corporate reports. From now on, clients ordering detailed information about a selected company will be able to see the proportion of immunized staff.
“The inclusion of immunization indicator into corporate reports will facilitate a better risk analysis of potential disruptions of activities due to staff illnesses which will help a business partner, or a client make further business decisions”, Aurimas Kačinskas, CEO of Creditinfo Lithuania said.
The first ever publication of immunization levels has demonstrated that, e.g., the largest share of immunized staff (80%) work for the IT sector, and the least immunized staff (as little as 27%) work for transportation companies. In comparison, as many as 80% of Creditinfo Lithuania staff have already been vaccinated.
Moreover, the official information published by the Department of Statistics will soon enable comparison of the share of immunized staff in one enterprise with counterpart organizations in the same business sector. To this end, an additional indicator is published as well – the so-called percentile. For instance, if an enterprise’s percentile is 100, it means that it is among one percent of companies with the highest immunization level. The lower the percentile, the fewer employees have immunity, i.e., have been vaccinated with at least one doze or have recovered from the coronavirus.
According to the Department of Statistics, for the purpose of confidentiality the percentage of immunization is indicated only for those workplaces with over 10 members of staff.
“We believe that monitoring these indicators contributes to the national fight against the Covid-19 pandemic, encouraging companies to take a more proactive approach with regard to staff vaccination”, A. Kačinskas said adding that “we always try to include new indicators into our reports in a timely manner so that our clients could benefit from exhaustive information about other companies”.
As of last May, Creditinfo Lithuania included into the list of monitored indicators information about average gender pay, and soon is planning to introduce yet another one – the sustainability indicator.
Creditinfo launches SME blended scorecard in Kenya
Credit information leader launches pan-African SME initiative, ahead of global rollout
LONDON, UK, 21st July 2021 – Creditinfo Group, the leading global credit information and decision analytics provider, is today announcing the launch of a scorecard solution tailored for small to medium-sized enterprises (SMEs). Through its unique approach to data and algorithms, this scorecard will help financial institutions improve their credit assessment and facilitate financing to the SME market, which has typically been less able to access finance.
Creditinfo, recognizing the importance of SME risk assessment across the world is aiming to roll out a global solution to address this challenge. The company will first launch the SME scorecard in Kenya, ahead of a wider rollout across countries in Africa, and several other key economies across the globe.
The unique modeling approach Creditinfo have developed significantly reduces, and in some cases eliminates, the human effort needed to assess customers’ risk profile based on credit data. It is delivered in a software platform which unifies, streamlines, automates and centralizes the risk evaluation process. Creditinfo’s SME scorecard is considerably stronger at predicting business failure than existing traditional models.
Burak Kilicoglu, Director of Global Markets at Creditinfo, commented, “SMEs drive innovation and push digitalization forward for many people by providing services to underserved segments of the population and creating job opportunities. SME scorecards will accelerate access to finance for the benefit of whole economic ecosystem. At Creditinfo we have access to a wealth of credit bureau data as a starting point, and so are uniquely positioned to offer this solution in global markets.”
Kamau Kunyiha, CEO of Creditinfo CRB Kenya, added, “Kenya is the most dynamic and receptive market for SME lending innovation, demonstrated by the successful adoption of mobile wallets and microloans. We look forward to seeing the economic impact of this new solution as it comes into full effect and we see more capital flowing through the SME economy.”
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About Creditinfo
Established in 1997 and headquartered in Reykjavík, Iceland, Creditinfo is a provider of credit information and risk management solutions worldwide. As one of the fastest-growing companies in its field, Creditinfo facilitates access to finance, through intelligent information, software and decision analytics solutions.
With more than 30 credit bureaus running today, Creditinfo has the most considerable global presence in this field of credit risk management, with a significantly greater footprint than competitors. For decades it has provided business information, risk management and credit bureau solutions to some of the largest, lenders, governments and central banks globally to increase financial inclusion and generate economic growth by allowing credit access for SMEs and individuals.
For more information, please visit www.creditinfo.com
PR contacts:
Marketing Manager/ PR for East Africa
Phidi Mwatibo
Email: Phidi.mwatibo@creditinfo.com
