Credit reference bureau (CRB) Africa, a leading credit bureau solutions provider has launched its operations in Rwanda, promising to provide adequate information about the borrower’s credit history.
The CRB idea came into place in 2009 when the Rwanda Bankers Association released a request for a proposal to a number of international bureau operators to bid for the opportunity to establish and operate the credit bureau in Rwanda.
“This initiative fits our strategic objectives since we are currently expanding CRB Africa to countries around Africa and providing technology and consulting services to many other credit bureau initiatives,” said Paul Pavlidis, the Chief Executive Officer (CEO) of CRB.
The CRB will be responsible for providing accurate information on borrowers’ debt profiles and repayment history, an activity that is currently done by lending institutions.
The recorded information will be used by commercial banks, credit institutions and Microfinance Institutions to quickly decide on ones’ loan request.
Pavlidis said that the new credit bureau services will encourage lending and commitment to loan repayment, hence the overall development in the economy.
Francois Kanimba, the Governor of the National Bank of Rwanda said the CRB will play a vital role in assisting financial institutions in their credit appraisal processes and manage credit risk effectively by providing timely and accurate information on a consumer’s debt profile.
“The services allow the Small and Medium Enterprises to build a credit history, an asset that can reduce physical collateral to support borrowing for micro loans,” said Kanimba.
The Central Bank is mandated to supervise the operations of the bureau to ensure that the information collected is managed in the most secured manner and the standards adhered to in accordance to the law.
With CRB being a new concept in the country, an educational campaign is set to be launched in order to sensitize the general public about its benefits and create favorable perceptions about the bureaus.
The existence of CRB will also enhance competition within the financial sector and it will also align and support government programs, the Governor said.
CRB Africa is the largest networked credit reference bureau and credit management solutions provider with current operations in 9 African countries.