International Finance Corporation (IFC), a member of the World Bank Group, and DataCheck Pvt Ltd, Pakistan's leading private credit bureau, Thursday launched the first credit bureau scoring system in the country, which will enhance the credit environment and increase access to finance.
The new credit bureau services provided by DataCheck will benefit Pakistan's entire lending community. The effort was led by IFC Advisory Services in the Middle East and North Africa - PEP-MENA.
Dr Shamshad Akhtar, Governor of the State Bank of Pakistan noted that developing a sustainable and dynamic credit environment is key to a healthy economy, and that lenders need access to effective tools and methodologies to make better lending decisions and support the growth of Pakistan's economy.
She said, "We have taken an active role in developing the credit industry and are pleased that the private sector also recognises the importance of this field. We welcome new ideas and best practices from around the world that will help the industry grow in a profitable and sustainable manner."
Credit bureaus worldwide specialise in collecting information about the repayment behaviours of consumers and small businesses. This information allows lenders to make more informed decisions about issuing loans, which helps improve access to finance, prevent over-indebtedness, and drive down the cost of borrowing.
The raw data that credit bureau collect requires an expert eye for evaluation, and this poses a challenge in emerging markets, where there may be a limited number of experienced credit officers. Bureaus scoring can assimilate raw credit data into a quantitative measure of risk, yielding a score that is easier to interpret.-PR
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