Press Release – For immediate release: 1st June 2016
Financial Sector initiative on credit scoring (A case study of FINCA Uganda)
Today, 1st June 2016, FINCA Uganda and Compuscan Credit Reference Bureau jointly have the pleasure to reveal a case study on the successful implementation of a credit bureau scoring pilot study that was carried out at FINCA Uganda during 2015/2016.
FINCA Uganda embarked on this journey with Compuscan to address some of the challenges related to over indebtness and financial inclusion to the bottom-of-the-pyramid in an effective and efficient way.
Compuscan responded by delivering a cross- sectional market based credit scoring solution that was customized to FINCA‘s credit risk appetite; and it is this process that we are here to share with key stakeholders in this market especially, financial institutions.
During the pilot period, FINCA also worked with a team from Kfw Development Bank’s who joined the project as an independent evaluation team to analyze the process.
During the launch of the Credit Scoring pilot results at Serena Hotel Kampala, the Managing Director FINCA Uganda, Mr. Julius Omoding remarked: “The use of Data is increasingly becoming helpful in creating confidence in the financial services sector. While the initial benefits are a much improved turnaround time with less inconveniences to the customer, a better customer experience for loyal, good paying customers and an instant decline for high risk customers, all these parameters provide the financial institution with an ability to better provide advisory and relationship management services tailored to a client’s need/behavior.”
FINCA believes that the above will ultimately improve the perception most people have towards the financial service providers and as a result improve the need to act responsibly; and whilst consumer protection has been tagged a lot towards the customer, now the customer and the Bank both have a mutual role to play.
“Therefore, as we add more data sources to our analysis of clients’ ability to manage credit through items like Water, telecoms, electricity payments, etc., this will improve on the credit rating process as a wholesome analysis and not just financial as has been the case before. Indeed, this is a huge change we bring to the financial services sector and we are proud to have led the way on this very important journey.” Mr. Omoding concluded.
At the same event, the Managing Director Compuscan, Mr. Mike Malan said:
“Compuscan’s Credit Bureau Scoring Solution is a first in Uganda bringing a combination of a two tiered approach to credit decision making. The solution evaluates the credit bureau information and introduces a layer of intelligence that is delivered through on-line systems bringing automation to how credit has previously been granted. Compuscan’s Credit Bureau scoring solutions make credit granting safer, more structured, ensuring that accountability and control are easier to manage.
“Being able to control risk by using Compuscore and CODIX helps banks to reduce NPL’s and grant more credit to known better risk customers. This solution also helps significantly improve the customer experience by turning the decision around so much faster.” He added.
Malan concluded by thanking FINCA for their willingness to share the findings of the credit scoring implementation with the financial sector at large and recognized the view by FINCA that access to improvements in lending technology should be a win for the entire country.
About FINCA Uganda (MDI)
FINCA Uganda is the first MDI to be licensed by Bank of Uganda and offers life-changing financial solutions which include: Savings, Loans and Money Transfers across a network of 27 branches countrywide.
FINCA Uganda is a subsidiary of FINCA International based in Washington DC, United States of America, which serves more than 1,800,000 customers in 23 countries across 5 continents.
For more information, contact: Simon Ahimbisibwe – Head of marketing FINCA Uganda on 0776650096.
About Compuscan CRB LTD
Since establishment in 1994, Compuscan has emerged as a reputable and trustworthy credit bureau, committed to providing total credit reporting and risk management solutions throughout the credit life-cycle. Compuscan have experienced rapid growth and have evolved from being a local credit information agency to a full service credit bureau delivering solutions to a range of institutions in markets across Africa, providing a range of comprehensive datasets which offer a holistic view of consumer and business information to assist businesses to make the most informed decisions.
Compuscan has headquarters in Stellenbosch South Africa and employs 350 people in 8 countries.
For more information about Compuscan, contact: Mike Malan – Managing Director on 0706200001.