Credit reference should move to scoring clients, says player

Friday May 10 2019

Metropol Credit Reference Bureau Managing

Metropol Credit Reference Bureau Managing Director Sam Omukoko speaks to a Nation reporter at his Upperhill office on May 6, 2015. NMG PHOTO  


Kampala. Credit reference bureau services should move to the next level of credit scoring, which accesses the progress of both borrowers and lenders.

Speaking during the launch of the Metropol Crystobol, a product of Metropol Credit Reference, which enables borrowers to access their credit reports, early this week in Kampala, Mr Sam Omukoko, the Metropol regional managing director, said credit scoring produces a “score” which ranks customers in terms of risk and gives a future picture of one’s repayment ability.

This, he said, benefits both the borrowers and the lenders and creates a relationship that is mutually beneficial.
“Credit reference bureau services in Uganda is now ripe to move to the next level which is credit scoring information,” he said.

It is easier (using credit scoring), he said, to predict the probability of a customer’s repayment, which helps to provide consistent assessment of a client.

A credit reference bureau is a financial authority that processes information about the credit history of businesses and individuals to help lenders make informed decisions when lending to customers.

It uses client information to create credit reports and scores to demonstrate the credit worthiness of a borrower. Compuscan was the first credit reference bureau to launch in Uganda in 2008. The bureau has since collected data on a number of borrowers from microfinance deposit taking institutions and banks.

The Metropol Credit Reference Bureau is a subsidiary of Metropol Corporation Limited, a data driven entrepreneurial company based in Nairobi, Kenya.

Sound credit decisions

According to Mr Sam Omukoko, Metropol receives credit data on a monthly basis from all Bank of Uganda licensed financial institutions and processes this data into credit reports and other value added solutions necessary for making sound credit decisions.