Al Etihad Credit Bureau (AECB), UAE's sole provider of credit reports, has announced that it will be operational in H1, 2014. The pre-operational phase will be complete by Q1 2014, with all financial institutions will complete testing data validity and accuracy , training users and establishing internal roll-out plans for the bureau to start operations.
Al Etihad Credit Bureau has been working on implementing many of the customisation requirements raised through workshop groups to build a solid foundation for the most important components of a credit bureau, including the data dictionary, its file formats and accuracy thresholds for all mandatory and optional fields. During initial testing, four banks were able to provide over 90% accuracy and consistency in the submission of credit information.
The second phase of system development is well underway and shall be introduced in H2 2014 to enhance the quality of the reports and enable better decision-making across the financial sector. Such additions will include bounced cheques information, telecom bill payments behaviour and delinquencies, along with alerting tools.
HE Younis Haji Al Khoori, Vice Chairman of Al Etihad Credit Bureau, said: “The bureau is working hard to enhance efficiency and stability in the UAE’s financial infrastructure by providing a highly reliable, accurate and secure credit reporting system. As such, we’re aiming to obtain data with high level of accuracy and maintain confidentiality through adopting international standards. Our upcoming plans reflects our commitment to all stakeholders.”
Marwan Ahmad Lutfi, CEO of Al Etihad Credit Bureau, said: “Credit bureaus all over the world are proven to support responsible lending, enhance payment behaviour and reduce credit losses. In accordance with the Central Bank’s guidelines our mission is to provide a sustainable and reliable credit information resource that aims to strengthen the UAE’s financial infrastructure and add value to the banking industry.”