Al Etihad Credit Bureau (AECB), a UAE-based federal government company that specialises in providing credit reports and other financial information, has announced that it will be operational from Q1 2014.
The AECB has approached all UAE-based banks to sign agreements and provide credit information through a process that will be completed by the end of January. Furthermore, it is currently finalising the installation of an electronic link with banks and financial institutions operating in the UAE to create a comprehensive database of individuals’ and businesses’ credit information. This process will assist to prevent economic downfalls by verifying customer/company credit history to determine financial eligibility.
“Effectively run credit bureaux are internationally proven to support responsible lending, enhance payment behaviour and reduce credit losses from bad or non-performing debts,” says Marwan Ahmad Lutfi, CEO of the AECB.
“Al Etihad Credit Bureau will help to strengthen the UAE’s financial infrastructure and add demonstrable value to the banking sector. To do this, we are forming solid partnerships with banks and other financial institutions in the country to ensure the efficient and accurate transfer of information between both sides,” concludes Lutfi.
The general outcome will be to build the foundations for some of the most important components of a credit bureau, including data dictionary, credit file formats and necessary requirements to ensure accuracy in all financial aspects.
The AECB is in the process of completing the final steps before its launch, which includes all financial institutions testing their data validity and accuracy in order for credit reports to be provided in a virtual technique, along with training users, and the finalisation of agreements between partners and the bureau to provide credit information.