CRIF has been selected to develop and manage the first full-fledged private credit bureau in Madagascar
CRIF has been selected by the Central Bank of Madagascar (Banky Foiben'i Madagasikara) through international competitive bidding in a project conducted by BFM and supported by the IFC (a member of the World Bank Group) as the strategic partner to develop and manage the first private credit bureau in Madagascar.
The credit bureau, compliant with international quality standards and the local legal framework, will manage credit information sent by Madagascar organizations through an advanced technology platform, which will integrate and consolidate all data on the reliability of a credit applicant into a single report. CRIF is currently working on the formal licensing process, and set-up of a fully owned local company, which, will be in charge of the market management. The local entity will operate under the supervision and control of the Banky Foiben'i Madagasikara.
Considering the economic and financial system in Madagascar, the credit bureau will support the development of the credit market in the country, helping SMEs and consumers to move from a relationship-focused approach with lenders to a more advanced one based on credit references. At the same time, thanks to the availability of complete and updated credit information, lenders will be able to deliver financial services at significantly reduced costs and expand credit to households and SME’s segments of the economy.
CRIF credit bureau also aims at significantly contributing the increase of financial inclusion processes. As reported by the World Bank on its “Madagascar Economic Update, 2018” the country has enjoyed sustained economic growth over the last four years, with a GDP growth which has steadily improved and is projected to reach 5% in 2018.
The establishment of a fully-fledged credit bureau will create new opportunities to increase credit access to businesses, allowing them to obtain more favorable credit conditions. On the other side, it will help consumers to access loans reducing the risk of discriminatory lending practices with positive impacts especially for the younger segments of the population and new entrepreneurs who do not have collaterals.
“We are glad to work on a new project which reflects CRIF’s interest and commitment in the African continent”, commented Carlo Gherardi, President of CRIF. “Our successful experience in operating and managing credit bureaus in several countries worldwide makes us confident that significant advantages will also be provided to Madagascar’s credit market to support the financial needs of businesses and consumers.”
“CRIF is committed to help lenders to make faster and more accurate decisions based on a detailed credit profile of borrowers and improve their risk management. At the same time the availability of a full commercial credit history will give to Madagascar businesses and consumers easier access to credit”, explained Davide Michele Meo, CRIF Sales and Direct Markets Director. “Thanks to our globally robust and recognized experience in providing the widest set of solutions to lenders and companies, we would be also able to develop customized scoring systems and credit management solutions, and offer significant advantages to the assessment of customer creditworthiness, reliability and level of indebtedness”.