ICRA and Creditinfo Tanzania launch first credit rating agency for Tanzania institutions
Dar Es Salaam, 24th January 2024 – Creditinfo Tanzania, provider of credit information and risk management solutions, and ICRA (International Credit Rating Agency) have partnered to launch the ICRA Rating Agency, the first credit rating agency locally based in Tanzania.
The joint venture will provide credit rating and evaluation services to Tanzanian financial institutions, creating for the financial industry. Combined, ICRA and Creditinfo’s Tanzania team bring decades of experience and practical knowledge in credit risk management and analysis to support and improve credit assessment in Tanzania.
Adv Hassan Mansur, Local Director of ICRA Rating Agency Limited said: “We are delighted to launch Tanzania’s first credit rating agency that is fully geared towards strengthening the economy through providing credit rating services that are tailored to the African market. Our partnership with Creditinfo will provide ample opportunities and offer a competitive edge for various institutions, most especially the Tanzanian institutions in the International Market.”
Edwin Urasa, CEO of CreditInfo Tanzania said: “At Creditinfo, we are committed to sustainably growing our business and identifying ideal opportunities to build strong and profitable credit rating agencies, while helping more local citizens and businesses access finance. Our partnership with ICRA marks an important milestone for us and gives us the opportunity to improve the standards of credit assessment. Tanzania is an optimal market for us to introduce this service because of its tremendous promise for inclusive financial services. This venture will set a new standard in credit rating and promote financial health and empowerment across Tanzania.”
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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 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 tz.creditinfo.com
About ICRA Rating Agency
ICRA Rating Agency Limited has been accredited for being the First Ever Credit Rating Agency approved by Bank of Tanzania (Central Bank of Tanzania) to which we are the only regional central bank approved credit rating agency offering credit rating services. Our organisation also gets the special status of ecai (external credit assessment institution).
ICRA has an expert team with a combined experience of more than 25 years in Audit, Inspection, Financial Analysis, Credit Research, Banking, Compliance, AML and Certification. Our ratings significantly influence corporate and financial institutions to achieve better market standing. ICRA ratings aim to help various corporations and institutions demonstrate their financial capability.
For more information, please visit www.icrallc.com
Creditinfo Estonia’s sanctions’ monitoring solution for small businesses
With the ongoing aggression initiated by the Russian Federation in Ukraine, the need to implement international sanctions has to be embedded in the daily business activities of our companies.
We know that companies – operating in the fields of activity subject to such a special obligation – must do more due diligence to mitigate the risks associated with implementing sanctions, but the processes should be somewhat similar to all of the companies operating in Estonia.
Such companies, whose daily economic activities do not deal with continuous customer background research or transaction monitoring, can sometimes be in a difficult situation where they do not have enough know-how or manpower resources to assess the risk of whether one of their customers or partners falls under the established restrictions or not.
Finding such a necessary workforce is always possible, but as you know, making such a fixed cost can sometimes be impossible according to the company’s business model. In this case, one of the options is to delegate the control of said risks outside the company or to use convenient and straightforward, but at the same time reliable services to help with this task, which are available on the market.
For these cases, Creditinfo is offering small businesses the opportunity to mitigate their risks in two ways – by delegating the checking of compliance with sanction lists for their customers and partners entirely to us or by using a straightforward and convenient solution on our e-Krediidiinfo portal – WebScreening.
The web-based service WebScreening allows you to request the entry of a person of interest to you through a convenient and comprehensive user interface, both on international sanctions (European Union and the United Nations) and watch lists (so-called local sanctions and “black lists” of various countries, in some instances, for example, wanted persons) as well as persons with a national background ( PEP) from the lists.
With additional functions, it is possible to perform user management in the portal (if the company has more than one user) or view the archive of requests made. At this point, it is good to note that the archive of performed requests is convenient to use, for example, to check the performance of the employee’s duties and prove the requests made to the supervisory authority, if necessary.
Check out the service: www.creditinfo.ee/kyc
Nova Credit and Creditinfo Bridge Cross-Border Credit Access for Ukrainians
NEW YORK – January 17, 2024 – Nova Credit, the leading cross-border and alternative credit analytics company, has announced a strategic collaboration with Creditinfo, a global service provider for credit information and risk management solutions, to help Ukrainians gain access to the necessary financial services needed to effectively rebuild their lives abroad. The partnership is powered by Nova Credit’s Credit Passport®, the only cross-border credit solution enabling newcomers to access their foreign credit history when applying for financial products in their new home country.
Bridging this critical data gap, Nova Credit and Creditinfo are providing Ukrainian expats and refugees with the tools they need to get started on the right financial footing upon arrival.Since March 2022, the U.S., U.K., and Canada – Nova Credit’s largest partner markets – have seen a combined 840,000 Ukrainians move*, and that number is expected to grow as the Russia-Ukraine War continues. As many will seek permanent residency in these new countries, a lack of credit history will introduce an obstacle to accessing financial services as, historically, new-to-country individuals have had no way to carry over their credit history and financial identity. This presents a challenge for both new arrivals who are looking to re-establish their lives, in addition to lenders who lack the credit data needed to provide their financial services and products to this newcomer population.
With this partnership, credit data from International Bureau of Credit Histories (IBCH) Ukraine (a Creditinfo credit bureau) – one of the three main credit bureaus in Ukraine – can be instantly translated into a local-equivalent credit report and score so that lenders who use the Credit Passport® solution can assess the credit risk of new-to-country Ukrainian applicants. Nova Credit’s partners using the Credit Passport® today include American Express, HSBC, Scotiabank, and Verizon.
“Of the many credit-excluded migrant populations around the world, few are in more dire need of support than the Ukrainian people,” said Misha Esipov, co-founder and CEO of Nova Credit. “Credit access isn’t just a piece of the puzzle; it’s a lifeline for the countless Ukrainians uprooted by the chaos of war. We set out to build this partnership with Creditinfo and IBCH Ukraine from the onset of the war, and our teams have worked hard to enable this integration. Together, we’re using data to bridge a world where everyone, regardless of where they come from, has a fair shot at building a brighter future.”
“We are delighted to partner with Nova Credit to help Ukrainians arriving in the U.S. gain access to financial services and credit checks as they look to settle and rebuild their lives,” said Satrajit Saha, Global CEO of Creditinfo Group. “Among the many challenges facing Ukrainians, is finding ways to access finance. Having a positive credit history is vital to doing many things in the U.S. such as renting a property and securing a job. This is why the information we can provide through our partnership with Nova Credit is so important – it offers the data financial institutions, employers and landlords need to provide basic services to Ukrainians wanting to rebuild their lives.”
The Credit Passport® Ukraine data integration is available for deployment into any credit risk or underwriting process across the U.S., U.K., Canada, U.A.E, and Singapore. To learn more about how to get started with Credit Passport®, visit: www.novacredit.com/business/credit-passport
*Source: 380,000 into the U.S. according to the U.S. Department of Homeland Security, 250,000 into the U.K. according to UNHCR, and 210,000 into Canada under the CUAET program.
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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 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
ABOUT NOVA CREDIT
Nova Credit is a credit infrastructure and analytics company that enables businesses to grow responsibly by harnessing consumer credit data. The company leverages its unique set of data sources, bank-grade infrastructure and compliance framework, and proprietary credit expertise to help lenders fill the gaps that exist in traditional credit analytics. Nova Credit serves as the bridge between data and credit excellence, providing a comprehensive suite of solutions designed to give lenders across various industries – including finance, fintech, property management, telecom, and automotive – a competitive edge in the open finance era. Its cross-border credit product, Credit Passport®, cash flow underwriting product, Cash Atlas®, and income verification product, Verification of Income, are used by leading organizations like American Express, Verizon, HSBC, SoFi, Scotiabank, and Yardi. Nova Credit is backed by investors including Canapi Ventures, Kleiner Perkins, General Catalyst, and Index Ventures as well as executives from Goldman Sachs, JP Morgan, and Citi. Learn more at https://www.novacredit.com or reach out to connect@novacredit.com.
An excellent Account Information Service is based on the accuracy of the categorization of transactions
In 2021, Creditinfo Estonia received permission from the Financial Supervision Authority to start offering account information services in Estonia, which later expanded to the markets of Latvia and Lithuania. Today, we have been offering the account information service on the market for almost two years. The account information service is based on the PSD2 directive. We have access to the transaction data of customers of banks and financial institutions using a secure data transmission channel and customer consent.
Account information categorization is the first and most trivial account data processing that creates customer value. In addition to the primary value, categorization is also an input for all subsequent, significantly more value-creating services (for example, debt risk assessment). Without categorization, each time finding, analyzing and displaying value from account information becomes too resource-intensive, so the end user would have to wait a relatively long time to get a result from their data.
Unfortunately, categorization is worthless if the accuracy and quality of the categories are low. Of course, every transaction on a bank account is not an input for assessing a person’s credit risk. When determining credit risk, it is critically important that the accuracy of the categorization of transactions required for analysis is as high as possible. This is to prevent credit losses for companies and overdue debts for private individuals, directly affecting both interest groups’ reputations.
The main input from categorization is related to income
Visit creditinfo.ee/en for more information.
Ivo Vallau
Open Banking Product Manager, Ceditinfo Estonia.
Access to customer bank transaction data provides a basis for more intelligent business decisions
In 2021, Creditinfo Estonia received permission from the Financial Supervision Authority to start offering account information services in Estonia, which later expanded to the markets of Latvia and Lithuania. Today, they have been offering the account information service on the market for almost two years. The PSD2 directive regulates the account information service, that grants account information service provider (Creditinfo) access to the transaction data of end-customers of banks and financial institutions, using a secure data transmission channel and customer consent.
Intelligent business decisions can only be made when decision-makers have enough information when making the decision. Decisions made without comprehensive information may remain superficial or rely too much on intuition. A joint decision becomes smart by including relevant, up-to-date, appropriate and verified data for decision-making, analyzing it and drawing conclusions from it.
Companies that want to be competitive in the market and, at the same time, grow faster than the market must act consciously and operatively to take advantage of the exponentially increasing amount of data and to navigate the diverse data landscape. The word “action” means the application of well-thought-out multiple technologies, the careful selection of primary data and adaptation to large, innovative data sets that provide the company with necessary data inquiries and detail-specific analyses. The actions mentioned in the previous sentence are based on the data value chain – a framework for managing data from collection to decision-making.
Access to bank transaction data gives the financial sector and several other sectors an unlimited opportunity to use innovative data sets to improve their business processes. Data (including account data) collection, analysis, targeted use and data-driven decision-making directly relate to Creditinfo’s core business. Creditinfo has invested a lot of time and knowledge to ensure and support its customers in successfully using the account information data. Remember that the customer does not have to invest resources in implementing the necessary specific technologies and data analysis in addition to their core business to filter and acquire value from bank transaction data.
Creditinfo adds value to account data with information from other sources
Bank transaction data helps to make more intelligent and more informed decisions regarding the products, services and conditions offered to the end customer. Figuratively speaking, credit bureau data enlighten one corner of the room of a person’s financial behavior, and the information obtained from account transactions enlightens the other corner of the room of a person’s financial behaviour.
Account information, besides evaluating financial behavior, provides information about a person’s daily habits, experiences, preferences, hobbies and much more.
In summary, access to the data of the end customer’s bank transactions provides a foundation for making business decisions based on an even more extensive and significantly more diverse data set, in other words, making decisions even smarter. As a universal, comprehensive solution provider throughout the Baltics, Creditinfo is the only partner for its customers with access to credit bureau data, global KYC data, and bank account data.
Visit creditinfo.ee/en for more information.
Ivo Vallau
Open Banking Product Manager, Ceditinfo Estonia.
Creditinfo’s Account Information Service Product
In the spring of 2021, the Estonian Financial Supervision Authority authorized Creditinfo Estonia to offer Account Information Service in the Estonian market. In the autumn of 2021, the Estonian Financial Supervision Authority also granted the authorization to provide Account Information Service to the Latvian and Lithuanian markets. This act added to our product portfolio a new, exciting product that benefits our customers in the short and long run. As of today, we have had the Account Information Service in our cross-Baltic product portfolio for two years.
About the Account Information Service
The opportunity to provide Account Information Service emerged when the European Union (EU) Parliament and the EU Council adopted a new directive regulating payment services in the EU internal market on November 25, 2015 (PSD2), which emphasized the expansion of open banking in Europe.
Open Banking refers to provide third-party financial service providers open access to transactional data of bank and financial institution customers, using secure data transmission channels and customer consent.
The Account Information Service is a part of the Open Banking initiative, defined as an online service where the service user (customer) is identified and authenticated via strong identification and authentification means. The service itself means transmitting customer’s bank account data through a secure channel to third party from whom the customer wishes to apply a credit product.
How does Creditinfo provide the Account Information Service?
Using Creditinfo Estonia’s solution, both individuals, which is regulated by the aforementioned payment service directive, and companies can transmit their account information to third parties.
Beside financial sector the possibilities of the Account Information Service can be successfully used in application processes in various sectors. Previously mentioned customer consent is obviously obligatory.
Different sectors that can benefit from account information:
- Public sector companies that provide subsidies to individuals and businesses, where the information in the account details creates significant value when determining subsidies;
- Insurance sector companies, which can use behavioral information from the bank account for determining insurance premiums or simplifying the insurance incident evidence burden;
- Other sectors where value from account information help to create better personalized offers for their products and services.
The strength of our Account Information Service is categorization.
The greatest value of the Account Information Service provided by Creditinfo Estonia comes from categorizing account transactions, which our clients (data recipients) can conveniently use in their business decisions.
Categorization is a solution that can and should be continuously improved over time. Precise and detailed categorization is a top priority for Creditinfo Estonia’s Account Information Service.
The data from the Account Information Service serves also as an input for our Account Information Service Report. The report helps to make more informed business decisions both internally and towards our client’s customers. The report highlights all the key ratios, indicators, “green and red flags” and much more that can be extracted from account information.
The report is designed in a way that can be customized to meet the client’s needs, which make it a tool for everyday business decisions.
More information about the service: https://creditinfo.ee/en/avoid-debts/psd2/
Creditinfo: “The BIC reform will make it possible to take a big step towards financial inclusion.”
Reform of BICs, impact of inflation on solvency, feedback from the Checkinfo service – an overview with Sidimohamed Abouchikhi, Regional Director for Francophone Africa of Creditinfo Group, and Director of the Board of Directors of Checkinfo.
Finance News Hebdo: In this inflationary context, what assessment do you make of individuals’ and businesses’ insolvency risks?
Article translated in English as first seen on Finance News Hebdo For more inofmormation visit: www.checkinfo.ma
Retrospective of the semi-annual statistics of the Register of Payment Failures in Estonia
The Payment Default Register managed by Creditinfo Eesti reflects the debts of private individuals and companies and thus helps to make smart credit decisions. It is the first and oldest register containing debt data, which was established in 2001 by Estonian banks.
There are tens of thousands of people with payment defaults in Estonia
As of the end of the first half of 2023, there were 57,694 individuals with valid payment defaults. Compared to the period a year ago, the number decreased a bit.
When the debt is liquidated, the current payment default is marked as closed – at the end of the first half of 2023, there were 109,766 private individuals with closed payment defaults.
A closed default shows that the debt has been paid, but at the same time it gives the creditor a warning that the person has had problems paying bills in the past and it allows for a more accurate assessment of their creditworthiness. In the case of private individuals, closed payment defaults are published for up to 5 years after the payment default has ended.
The number of companies with payment defaults is increasing
As of the end of the first half of 2023, there were 21,121 legal entities or companies-institutions with valid payment defaults. Thus, there has been an increase of 3.3% compared to last year.
There were 32,836 legal entities with closed payment defaults. In the case of companies, the information provided will be published for another 7 years after the closing of the payment default.
There are more than 150 thousand active payment defaults in the Register
There were 128,405 active payment defaults in the Payment Default Register of private individuals at the end of the first half of the year. The closed payment defaults for private individuals with payment defaults reached to 350,120.
There were 44,472 active defaults of legal entities at the end of the first half of the year. There were 65,816 closed defaults of legal entities.
The number of active payment defaults has increased
In total, there were 172,877 active payment defaults published in the Payment Default Register. If one also adds information of closed payment defaults, the total number of payment defaults in the Payment Default Register is 588,832, which has increased by approx. 6.6% compared to the end of 2022.
By Creditinfo Estonia.
Visit: www.creditinfo/ee/en
Risk Management Framework
Risk management is an essential function for any bank, as it helps to protect the bank’s financial position, reputation, and long-term viability. An effective risk management framework consists of several key components that work together to identify, assess, and manage risks.
Risk Governance
The first key component of an effective risk management framework is risk governance. This involves establishing clear risk management policies, procedures, and guidelines that align with the bank’s overall strategy and objectives. The bank’s board of directors and senior management should be actively involved in setting risk management policies and overseeing the bank’s risk management activities.
Risk Identification
The second key component is risk identification. The bank should have a comprehensive risk identification process in place to identify all potential risks associated with its business activities, products, and services. This includes identifying internal and external risks such as credit risk, operational risk, market risk, and compliance risk.
Risk Assessment
Once risks are identified, the bank should assess the likelihood and impact of each identified risk to determine its potential impact on the bank’s overall operations, financial position, and reputation. This includes assessing the potential impact of risks on the bank’s customers, employees, and other stakeholders.
Risk Mitigation
The bank should develop and implement risk mitigation strategies to manage and reduce the likelihood and impact of identified risks. This may include implementing internal controls, establishing risk limits, and developing contingency plans.
Risk Monitoring
An effective risk management framework should include ongoing risk monitoring to ensure that the framework is functioning as intended. This involves continuously monitoring the bank’s risk management activities to identify emerging risks and ensure that existing risks are being effectively managed.
Risk Reporting
The bank should have a robust risk reporting framework in place to provide timely and accurate information on risk exposures and mitigation activities to the board of directors, senior management, and other stakeholders. Effective risk reporting helps ensure that the bank’s management team has the information they need to make informed decisions about risk management activities.
Risk Culture
Finally, an effective risk management framework should foster a risk-aware culture throughout the organization. This involves ensuring that all employees understand their roles and responsibilities in managing risks and are held accountable for their actions. A strong risk culture helps to ensure that risk management activities are integrated into the bank’s day-to-day operations.
In conclusion, an effective risk management framework is essential for banks to identify, assess, and manage risks. The key components of such a framework include risk governance, risk identification, risk assessment, risk mitigation, risk monitoring, risk reporting, and risk culture. By implementing an effective risk management framework, banks can effectively manage risks and protect their financial position, reputation, and long-term viability.
Joe Bowerbank,
Business Development, Creditinfo Group.
Digital Transformation in Credit Risk Management: What You Need to Know
The rise of digital technologies is transforming the financial industry, and credit risk management is no exception. With the increasing use of digital channels for financial transactions, there is a growing need for credit risk management strategies that can effectively manage risks in these channels. In this blog post, we will explore the concept of digital transformation in credit risk management and discuss some of the key trends and best practices in this area.
What is Digital Transformation in Credit Risk Management?
Digital transformation in credit risk management involves the use of digital technologies to manage credit risk more effectively. This includes the use of advanced analytics and machine learning to analyze large amounts of data in real-time, as well as the development of digital platforms that enable faster and more efficient credit risk management processes.
One of the key benefits of digital transformation in credit risk management is the ability to analyze data more effectively. By using advanced analytics and machine learning algorithms, financial institutions can analyze large amounts of data in real-time, identifying trends and patterns that may be indicative of credit risk. This can help financial institutions make more informed lending decisions, reducing the risk of default on loans and other credit products.
Another benefit of digital transformation in credit risk management is the development of digital platforms that enable faster and more efficient credit risk management processes. For example, some financial institutions are developing digital platforms that enable borrowers to apply for loans online, with the platform automatically analyzing the borrower’s credit risk and providing a decision in real-time. This can significantly reduce the time and cost associated with traditional lending processes, making it easier for borrowers to access credit.
Key Trends and Best Practices in Digital Transformation in Credit Risk Management
There are several key trends and best practices in digital transformation in credit risk management that financial institutions should be aware of:
Use of advanced analytics and machine learning: Financial institutions should leverage advanced analytics and machine learning algorithms to analyze large amounts of data in real-time, identifying trends and patterns that may be indicative of credit risk.
Development of digital platforms: Financial institutions should develop digital platforms that enable faster and more efficient credit risk management processes. These platforms should be user-friendly and easy to access, making it easier for borrowers to apply for loans and access credit.
Integration with other digital platforms: Financial institutions should integrate their credit risk management platforms with other digital platforms, such as mobile banking apps and online marketplaces, to provide a seamless and integrated experience for borrowers.
Investment in cybersecurity: Financial institutions should invest in cybersecurity measures to protect against cyber threats and ensure the security of customer data.
Conclusion
Digital transformation is transforming the financial industry, and credit risk management is no exception. By leveraging digital technologies such as advanced analytics, machine learning, and digital platforms, financial institutions can manage credit risk more effectively, reducing the risk of default on loans and other credit products. As the financial landscape continues to evolve, it is likely that new digital technologies and best practices will emerge, requiring credit risk management professionals to stay up-to-date with the latest trends and developments.
Gary Brown,
Head of Commercial Development, Creditinfo Group.
