Launch of the first Credit Information Bureau in Madagascar
Banky Foiben'i Madagasikara (BFM) and CRIF Group have today announced the launch of the first Credit Information Bureau in Madagascar during a workshop held at Hotel Colbert in the presence of the Governor of Banky Foiben'i Madagasikara (BFM), the Country Managers of the International Finance Corporation (IFC), and the World Bank in Madagascar.
"The Credit Information Bureau together with the psychometric score, the second solution launched by CRIF Madagascar in the country, open the door to the process of digitization of Madagascar’s financial world, working together to support financial inclusion in the country. As seen in other countries, the two services can also direct the market towards lower interest rates for borrowers and lower lending costs for credit institutions," explained Henri Rabarijohn, Governor of Banky Foiben'i Madagasikara.
In 2016, Banky Foiben'i Madagasikara (BFM) committed to improving the credit data sharing infrastructure in Madagascar in order to have a modern, comprehensive, and unfragmented data sharing system for private credit based on international best practices and a specific advanced, legal framework to encourage financial inclusion aimed at reducing the cost of credit. To achieve this, a roadmap was developed with the support of the IFC. In April 2017, a cooperation agreement was signed between BFM and the IFC for the creation of a Credit Information Bureau in Madagascar to strengthen credit information. BFM launched an international call for tenders and CRIF Group was selected for its proven experience in providing similar solutions worldwide and value-added services to banks and financial institutions in Europe, Asia, Africa and America.
"We are proud to have been selected by BFM and today we celebrate the start of this long-term project. Thanks to CRIF's advanced technology platform, able to process positive and negative data from banks and non-bank institutions, we will help Madagascar to develop its local credit market, enabling micro, small and medium enterprises as well as consumers to benefit from a more efficient and faster credit assessment and lending process based on the credit relationship", commented Davide Michele MEO, CRIF Director International Sales and Direct Markets.
Developed in collaboration with BFM and the IFC, the Credit Information Bureau is supervised by BFM to ensure the collection and management of available data on a borrower's credit or payment history from financial organizations, public sources and public utilities. The Credit Information Bureau platform system has been developed with the involvement of Madagascar’s main credit institutions, which have played a key role in actively contributing to the creation of a platform that meets the country’s needs.
The commitment and participation of all stakeholders in this long-term project has been and will be fundamental for the development of value-added services, which will further contribute to the improvement of access to credit and development of the country.
At the same time as the Credit Information Bureau comes into operation, CRIF MADAGASCAR will also launch a psychometric score service, with the aim of increasing the financial inclusion of the rural population. Both these tools will offer the possibility to: access credit according to credit risk, monitor credit risk over time, summarize the risk of each client, and reduce the possibility of over-indebtedness. Finally, thanks to the psychometric score, it will be possible to offer the entire population, and in particular the rural population, an alternative type of assessment to allow them access to credit, something which up to now has not been available.