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According to the World Bank's Doing Business Report 2009, the new system has already boosted the UAE's global business standing, recognizing the importance of the tool in improving the country's business landscape by allowing for better supervision of the debt issued by financial institutions.
Major mortgage industry players are looking forward to the benefit they can receive from Emcredit and are positive about the role in which the system can play in increasing accountability and fostering a more conducive business environment in the UAE.
"Credit verification is already common practice in more developed markets and is an efficient way of managing the risks associated with issuing debt. It benefits both the banks and consumers as it provides essential information needed to make more informed lending decisions,"
says Dommett.
"Overall, it will result in fewer loan defaults and speed up the entire loan application process as the banks will no longer have to bear the burden of piecing together the credit history of the applicant," he added.
In order to maximize the benefit of the database, all financial firms in the country should participate, says Dommett.
"In order for Emcredit to be successful, accurate consumer data will need to be submitted by all members. The more members sign on and the more information they provide, the more effective the service will be."
John Charcol Dubai takes the complexity out of the mortgage selection process by offering independent mortgage advice and quality brokerage services that provide speed and transparency every step of the way.
Posted by Nadeen El Ajou
