Data sharing critical for banks and lenders
TransUnion Director Africa Business Development, Adrian Pillay says improving compliance and data sharing can help banks and lenders in Botswana lower their lending risks and reduce non-performing loans.
Pillay was speaking at a workshop last week to discuss the need for better data quality and risk based solutions across the financial services sector.
The initiative was aimed at helping local banks and lenders protect their profitability while promoting responsible lending.
Pillay stressed that as a risk and information solution provider, TransUnion Africa is keen to engage with the banks to discuss the challenges and status of data sharing in the market and how it can bring added value to the banking community.
He explained that data sharing helps uncover whether customers are good or bad payers of their loans.
“Credit bureaus on a monthly basis collect information on behalf of banks so effectively that if someone has a personal loan with a certain bank or home loan with another any lender can view the type of borrower you are.
A bank can get a credit report from credit bureau which show the customers’ outstanding balance and a lender can decide whether to approve a loan or not.
There are three credit bureaus at the moment operating in Botswana with micro lenders, banking retail customers’ data information,” highlighted Pillay.