Banks root for creation of a credit data hub

Wednesday January 27 2016

Financial sector stakeholders have backed the

Financial sector stakeholders have backed the proposed creation of centralised hub for exchange of positive and negative credit information. PHOTO | FILE 

By BRIAN NGUGI
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Financial sector stakeholders have backed the proposed creation of a centralised hub for exchange of positive and negative credit information.

Players who discussed the findings of a feasibility study on simplified data submission point (data hub), commissioned by Credit Information Sharing Association of Kenya (CIS Kenya) and Financial Sector Deepening Trust Kenya (FSD Kenya), said the move would enhance quality of credit information shared and ease the process of submission further solidifying the growth of the credit reporting industry in Kenya.

"We are certain that the data hub if implemented will go a long way in value addition to the consumer, the lender and Credit Reference Bureau's," said CIS Kenya CEO Jared Getenga.

The data hub concept has earned the backing of the Central bank of Kenya, (CBK) with the regulator noting that it will help it in its oversight and regulatory aspects.

TEDIOUS

Banks are also vouching for the data hub as they say it will ease submission of data significantly compared to the current model where financial institutions submit credit data to multiple licensed Credit Reference Bureaus which tends to be tedious.

It is expected that the data hub proposal will reduce errors or omissions in credit reporting, giving a consumer uniform electronic data portfolio.

As per the new proposed model, should a complaint get lodged or resolved, updating such data is deemed easy, automatic and uniformly available for all players.

Kenya has three Credit Reference Bureaus. They are Creditinfo CRB, Metropol CRB and Transunion CRB.