TransUnion credit bureau sets up new scoring system
TransUnion chief executive officer Wachira Ndege (right) and executive director Steve Kamau during the launch of the TransUnion Credit Score for the Kenyan market on February 4, 2015 in Nairobi. PHOTO | SALATON NJAU |
What you need to know:
The chief executive of TransUnion, formerly CRB Africa, said the new credit score will reduce the incidence of borrowers being blacklisted or getting low scores for having some outstanding loans or bills which are not large enough to increase the customer’s risk profile.
Credit reference bureau TransUnion has launched a scoring system that will provide reports for over five million borrowers.
The TransUnion Credit Score was developed using data obtained from various lenders and other public sources.
“This ensures that the score is relevant to the Kenyan population and risk profile,” TransUnion chief executive Wachira Ndege said at the launch.
The chief executive of TransUnion, formerly CRB Africa, said the new credit score will reduce the incidence of borrowers being blacklisted or getting low scores for having some outstanding loans or bills which are not large enough to increase the customer’s risk profile.
“This score addresses the issue of subjectivity,” Mr Ndege said at the launch.
Last year 140,000 users of M-Shwari mobile credit facility were blacklisted for defaulting on loans.
Users can request for a free report once a year via email and then fill a form with PIN and ID card attached.
A credit bureau reference certificate attracts a Sh2,200 charge payable via mobile money.
TransUnion’s credit score will give users a score of between one and 1,000, with the latter being the highest possible score.
The score is also expected to make it easier for lenders to compete for prime customers since they can better price products using the data.
“As banks and microfinance institutions embrace credit information sharing in processing credit facilities they are expected to offer customers with good track record credit facilities on competitive terms,” says the latest banking report by the Central Bank of Kenya (CBK) for the quarter ended September 30 2014.
CBK says reports requested by customers rose 60 per cent between September 2013 and 2014 to stand at 9,812 from 6,094.
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