High level support for UAE credit bureau

His presentation outlined the three existing lines of credit checks in the UAE, which all contain privileged information and so could not be made public.

But he suggested that the addition of a fourth credit check system, particularly for credit cards would be a good idea. However, he added, 'we do not immediately need a credit bureau.'

Stuart Clayton from Visa highlighted the advantages of credit bureaux to banks, notably improve portfolio profitability, better screening of applications with a consequent reduction of bad debt losses, pre-screening of offers and as an economic barometer.

Leading credit and risk experts from international corporates such as PIC Solutions, IFC, Experian and Fair Isaac shared their experiences through presentations and case studies, illustrating the benefits of credit bureaux.

'Visa believes that the establishment of Credit bureaux is a primary tool to increase access to financing, improve portfolio monitoring and accelerate economic development and we are eager to work with the Central Banks and other financial institutions to provide the necessary support, resources and information required,' said Kamran Siddiqi, General Manager for Visa International Middle East.

Coinciding with the International Credit Bureau Conference in Korea on March 11, the Visa conference offers a platform for financiers to gain a significant insight into the methods and processes involved, whilst also providing the opportunity for open dialogue and joint cooperation in future activities.

'Following strong demand by the business community for tighter control over commercial lending risk, we hope that by working together and sharing data with existing and new credit groups that we can improve the efficiency of credit referencing and foster long-term growth for the region,' added Siddiqi.

The region has witnessed a growing number of initiatives towards greater automation both in the financial sector and at government level. The UAE has seen plans from the Dubai Department of Economic Development to establish a credit bureau, while Saudi Arabia has already introduced the process.

In the CEMEA region specifically, credit bureaux have been established with Visa in a number of countries including Czech Republic, Poland and South Africa. Visa has taken an active facilitating role and, in particular, has used its network of member banks to encourage the critical first step towards a credit bureau, namely agreeing to share data.

More recently, Visa has undertaken a feasibility study for a credit bureau in Egypt together with the Governor of the Central Bank of Egypt. The country is now introducing a bureau in three phases and has asked Visa to share its expertise and experience during the development process.