The Egyptian Credit Bureau “I-Score” piloting
23 August 2010
12 banks have already initiated trials to produce initial credit reports in preparation of launching I-Score business. The final training has been conducted to 41 banks, 5 mortgage finance companies and 6 finance leasing companies on March 11, 2008. It will be divided into 10 groups, each will attend a two-days course. Each group comprises 5 banks/companies and will be held at the company premises. During the sessions, I-Score will allow the trainees to produce credit reports on trial and as hands-on basis.
Training will cover how to produce credit reports from I-Score database and to highly benefit from such reports. I-Score will launch its business in respect of producing credit reports as soon as it receives CBE approval thereon.
On the other hand, CBE issued the operation license during the board meeting held on January 22, 2008. The resolution highlights that banks, mortgage finance and finance leasing companies shall obtain unlimited credit information and data on normal persons' indebtedness directly from I-Score at the time specified by CBE, without approaching the consolidated system for recording credit data at the CBE. Banks, mortgage finance and finance leasing companies shall be obliged to obtain credit data and information from both I-Score and the consolidated system for recording credit data at the CBE, in respect of SMEs indebtedness whose volume of credit offered to any of them does not exceed LE. one million from any of those banks and companies. The current obligatory rules shall also be applied in cases of accessing the consolidated system either for offering, increasing or renewing credits.
Mr. Mohammad Refaat El Houshi, I-Score Managing Director, stated "upon launching, I-Score database will include CBE database for loans exceeding LE. 30.000 from August 2007 to December 2007, in addition to January and February 2008. It will also include data of 17 banks, representing 85% of the commercial banks database. The national number is currently being entered into such data. Data of the rest of banks and companies is currently being uploaded and processed and is expected to be completed before mid 2008.
It is worth noting that I-Score took the initiative of providing credit reports for all clients whose data has been uploaded or underway and who completed the connection lines with I-Score as of March 2008.
I-Score is pleased to use the World Bank report as a reference, where it is noted that the lapse from any credit bureau incorporation to launching business is 4 years in average or more. The report also highlights that Egypt is considering accelerated strides to hit a record in implementing the credit bureau project (two years and a half) to launch business.
Mr. Peter Douglas, IFC Advisor stated: "I am proud of the great achievements that have been carried out by I-Score staff in respect of providing accurate and detailed data and information to lenders via the credit reports. Most countries where credit bureaus are incorporated, have taken more than 4 years, but in Egypt it is completed in two years and a half; it is really a record". He pointed out the achievement by "Dun and Bradstreet" and its flexible cooperation to suit the programs and databases in the Egyptian banking environment, including the amendment of the master program of receiving the national numbers from the Civil Affairs Authority and uploading them on the bank clients' database at the bureau. Mr. Manju, Dun And Bradstreet Executive Manager in Africa and I-Score Technical Partner, mentioned that I-Score should gain the credit for completing the project in such a record as a result of its great efforts exerted and the continuous CBE support, in addition to the banks sound cooperation that led to upgrading I-Score compared to its international peers.
On the other hand, Mr. Mohammad Kafafi, I-Score Chairman, do thank the shareholders, CBE, Egyptian banks and the bureau staff whose intensive efforts during 2007 had a remarkable impact on the bureau achievements and services rendered. He further points out the effective contribution of Dan And Bradstreet, the World Bank and EFS.