Al Etihad Credit Bureau to start issuing credit reports.
Dubai: Al Etihad Credit Bureau will begin to issue consumer credit reports to financial institutions which have submitted historical credit data to the bureau, from the beginning of September 2014.
The credit bureau has completed the process of uploading six months of credit data and information collected from banks and financial institutions to its credit reporting system. Banks and financial institutions will have access to their customers' recent and up-to-date credit reports and will be able to evaluate them before making any lending or financial decisions.
The credit reports will include records about consumers' debt levels, financial obligations, credit payments, history of default payments and late payments.
"The strategic objectives of Al Etihad Credit will be achieved through a multiphase process. The first phase, which will be launched in September, will allow banks and financial institutions to access and purchase existing and potential customers' credit reports electronically after submitting all the necessary documents. Customers will also have access to their credit reports through our soon-to-be-launched customer service centres," said Marwan Ahmad Lutfi, CEO of Al Etihad Credit Bureau.
Most banks in the UAE met the deadline to submit the credit data to the credit bureau and acknowledge that the availability of data will improve the overall credit quality in the banking system.
"Availability of credit data will improve transparency and credit quality in the banking system. We have been closely cooperating with the credit bureau to achieve its goals. From our experience in different markets across the world we are sure of the benefits it bring to the banking system," said Mohsin Ali Nathani, Chief Executive Officer of Standard Chartered UAE.
Al Etihad Credit Bureau is currently in the process of uploading customers' credit information for the past 24 months, in addition to individuals' Emirates ID details. 5.2 million credit facilities of individuals residing in the UAE have been added to the bureau's credit reporting system. This represents 97 per cent of the total credit facilities provided by local and international banks and financial institutions operating within the UAE, including credit card and loans.
"The issuance of credit reports to banks and financial institutions is an important step in reducing credit losses resulting from non-performing loans and will in turn help individuals and companies to have a deeper understanding of their financial obligations and debt levels," said Lutfi.
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|Publication:||Gulf News (United Arab Emirates)|
|Date:||Aug 13, 2014|
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