Sept. 08--Al Etihad Credit Bureau continues to work on scheduled plan and all set to achieve its goal to bring all financial institutions in the country under the bureau by the end of 2013.
The Banking Working Group of 12 banks, representing around 80 per cent of the retail borrowers in the country, is testing the system with the bureau. Rest of the financial institutions hosting approximately 20 per cent of the retail borrowers' data will join in the next three months. Total 51 financial institutions operate in the UAE.
"Since its establishment, banks and financial institutions operating in the UAE showed a strong interest in working alongside the bureau," Al Etihad Credit Bureau vice-chairman Younis Haji Al Khoori said in a statement on Saturday.
The bureau is currently working on completing the initial stage of its four-part execution plan and awaiting final approval of its regulations by the UAE Cabinet before it proceeds with the final contract signing with banks and issuing credit data reports for clients.
"We are developing, through our two working groups which include; 12 banks, the Ministry of Finance, the central bank and the UAE Banks Federation, as well as telecommunications companies, a world class credit reporting system and working practices. Our cooperation with the UAE financial institutions reflects the added value that Al Etihad Credit Bureau will provide to the banking and financial sector," Al Khoori said.
The bureau recently organised a workshop for representatives from 24 banks and financial institutions in the UAE to raise awareness of its operations, policies and procedures, in addition to its value added services. This workshop will be followed by several other business, technical and system-related events. The workshop reflects the bureau's ongoing commitment to adopt global 'credit risk' best practices, enhance transparency of lending within the UAE's banking and financial sector and ensure that all banks and financial organisations are members of the credit bureau.
This workshop, which is one of the on-going series of events organised by the bureau, included 24 banks and financial institutions showcased Al Etihad Credit Bureau's latest developments, operation requirements and guidelines to provide credit information, in addition to a detailed explanation of the credit report to be issued for individuals and companies. "In line with our strategic plan, we are working closely with our partners to ensure we achieve Al Etihad Credit Bureau's core objectives. We are committed to increasing transparency in the lending process by providing accurate and comprehensive credit reports on individuals and companies operating in the UAE to financial and credit providing agencies, Al Khoori said.
Mashreq, Standard Chartered Bank and Emirates NBD have already joined the bureau in the soft launch with other 10 financial institutions.
"Emirates NBD has worked closely with the bureau to work out system development, testing, report design, etc," Emirates NBD Retail Banking general manager Suvo Sarkar told Khaleej Times in June.
"We are also working on bureau roll-out plans internally, to ensure good customer experience during transition period," Sarkar added.
During the first phase of four-part execution plan the credit bureau commences the collection of consumer credit data from a pilot group of UAE financial institutions to improve the transparency of lending.
In the second phase, it will compile another comprehensive database of all commercial companies operating in the country including joint-stock companies. Financial information on borrowing by government companies will also be included in the database. Phase three will see the introduction of value-added services for lenders, while individual scores based on historical data will be completed in phase four.