Insurance company partners with Credit Reference Bureau to Curb High Rate of Insurance Fraud.

 

In a move aimed at strengthening its risk management processes and curbing the increasingly high rate of insurance related frauds such as false claims for damages, fraudulent Injury Claims and so on, a leading Insurance Company – MGen Insurance Company recently partnered with Dun & Bradstreet Credit Bureau  to develop detailed reports on the insurance history of applicants in addition to providing access to the credit history of such applicants in instances where prospective insurance customers have applied for an insurance product or service or where there are questions about a clients claims history from other insurers.

 

The move considered by Industry observers as timely and relevant, is amongst other things expected to ensure the insurance company is able to reduce their vulnerability to high-risk individuals or companies. In addition, ?it offers prospective customers of the insurance company the assurance fair and objective assessments.

 

Speaking on their recent engagement with Dun & Bradstreet, Mr. Charles Sumbwe the Managing Director of MGen Insurance Company said, ‘We are delighted that Dun & Bradstreet Credit Bureau has come forward with an innovation which will in no small way, ensure that we are able to assess and measure the risks associated with insuring our customers. The partnership will enable us to make fair judgements of customers which will lead us to make objective decisions and that will ultimately ensure service levels are enhanced as a result of weeding out those that create undeserving pressure by non-payment of premiums or by stage managing claims.”

 

The General Manager, Dun and Bradstreet said, “We appreciate the Management of MGen Insurance company for giving us the opportunity to be a part of their risk assessment and management process. We are confident that they will in very little time, witness a positive transformation in the behaviour of their customers as more individuals and businesses covered by insurance companies make adjustment to ensure that their profiles stay clean and that premiums are paid as agreed with the insurance companies.  It is our anticipation that other insurance companies will join hands with us to build a truly respectable credit and claims reporting eco-system for Tanzania where every stakeholder gets the value they deserve.”

 

The use of credit bureaus such as Dun & Bradstreet, will in the long term ensure that the insured enjoy more affordable insurance because pricing depends on loss experience over time, a match between risks and rates and the availability and affordability of insurance products and services. Studies of insurance companies in other climes have shown that consumers with better credit and insurance history as shown in their reports, generally have fewer losses and file less expensive claims. People who use credit wisely are generally responsible in other areas of their lives. It is time Tanzania’s insurance sector witnesses such trend as it offers good benefits to both the insured and the insurer.

Dun & Bradstreet Credit Reference Bureau Wins CFI Award for Risk Management Services

Dun and Bradstreet Credit Reference Bureau Tanzania Limited has been awarded by Capital Finance International as the Best Risk Management Services Team, 2016.

 

A statement credited to the judging panel of Capital Finance International (CFI) stated that “The CFI.co judging panel recognizes the key role assigned to credit bureaus as economies develop and become more complex.  The judging panel applauds the forward-looking approach taken by Dun & Bradstreet in Tanzania and offers the company the award for Best Risk Management Services Team, 2016”.

 

Speaking on the award, Dun & Bradstreet’s Country Head and General Manager  Mr. Adebowale Atobatele said, “We thank CFI for the award but more importantly, we owe a million thanks to our subscribers in Tanzania – the award is dedicated to them specifically for giving us the opportunity to bring world class credit information reporting to Tanzania. We had always insisted that what we needed to draw the attention of the world to Tanzania, was half-a-chance.  Our subscribers exhibited faith in us and have remained very supportive. We owe our success to them. We are glad that the award from Capital Finance International, vindicates our position that real leadership is successfully creating and delivering value to all stakeholders.”

 

In addition, the judging panel noted that Dun & Bradstreet maintains a number of programs and initiatives aimed at helping local banks and financial institutions further improve credit analysis skills and processes.  Thought seminars and workshops, the company strives to offer tangible contribution towards Tanzania’s accelerated economic development.

 

Dun & Bradstreet is determined to help shape Tanzania’s Credit reporting and business information industry by hiring, training and retaining local talent. So far, the CRB’s efforts have helped to significantly improve the quality, timeliness and accuracy of credit reporting in Tanzania.

 

A number of banks have engaged the services of Dun & Bradstreet Credit Bureau in order to strengthen their credit management processes and reduce the incidence of nonperforming loans (NPLs).  Also, experts are of the opinion that the existence of Credit Reference Bureaus can help improve the pace of development in emerging markets. With the advent of credit bureaus in emerging markets, those who were once considered unqualified for credit and financing can now get access to loans for productive purposes thereby improving the quality of their lives while at the same time contributing to the growth of the local economy.

 

Fully licensed by the Bank of Tanzania with it’s offices at the iconic Golden Jubilee Towers in Dar es Salaam, D&B maintains a team of seasoned professionals and leverages its global footprint and vast experience in order to become Tanzania’s preferred business information and risk management tool provider.

DNB successfully hosts its first Credit Analyst Boot Camp Session


As part of efforts to help enhance the skills of credit analysts among various financial institutions including commercial banks and micro-finance institutions, Dun & Bradstreet Tanzania hosted its first Credit Analyst Boot Camp on Friday December 11, 2015.

The training session was conducted by Dr. Bill Kiwia (PhD) and also featured a presentation from Dun and Bradstreet General Manager Mr. Adebowale Atobatele.

 

Every year, Dun & Bradstreet’s Learning and Development hosts a series of seminars and training sessions aimed at contributing positively to the financial eco-system where it operates.

For information on 2016 seminars and session, please call +255 222 135 445 or +255782040125

Bank, Credit bureau ink pact to curb loans defaulting rate

The National Microfinance bank (NMB) has entered into an agreement with Dun & Bradstreet Credit Bureau (CRB) to strengthen its credit management processes and curb defaulting.

This partnership is expected to reduce the bank’s share of non-performing loans. In 2014 financial results, the Non-Performing Loans (NPL) stood at 2.6 percent the lowest in the banking industry in Tanzania. NMB believes its partnership with Dun & Bradstreet would improve the NPL even better.

Credit Reference Bureau has become part and parcel of credit processing within NMB whereby CRB checks will be done to all loan applications for further processing.

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Speaking at the signing ceremony, the bank’s Managing Director – Ineke Bussemaker said the partnership has come at the right time and banks are working hard to ensure that they have lower non-performing loans as possible.
“With this partnership, Dun & Bradstreet will support NMB to do quick and prudent credit decision as well as increase customer loyalty and positive impact on business growth. Dun & Bradstreet therefore would play a key role in the growth of the entire economy and let us hold the idea for the better debt culture that benefits all of us,” Ineke said.
She also added that with over 2 million customers the bank is in need of this partnership to help the internal credit processing.
The Dun & Bradstreet Credit Bureau General Manager – Adebowale Atobatele said: “We are delighted to have NMB subscribe to our Credit Reference Bureau Services and with the innovation of automated credit checks, we believe that NMB’s overall objectives remain aligned to ours and that the whole process culminates into a new lending, borrowing and repayment behaviour that delivers to us all a stronger and inclusive financial sector”. Atobatele further said that the system will help in lending and repayment behaviour and automatically eliminate the loan defaulters.
With the new relationship between NMB and D&B, analysts believe that the past behaviours of serial loan defaulting and subjective lending have come to an end as now, all credit applications will have to be vetted thoroughly to ensure that creditworthy applicants get access to loan as promptly as required.
Dun & Bradstreet Credit Bureau Tanzania Limited is the newest equity-bureau of Dun & Bradstreet Credit Bureaus Limited (D&B) – a company that has so far, played a pivotal role in developing the financial infrastructure of several economies across the globe.

SOURCE: THE GUARDIAN( 23rd June 2015)

 

NMB and Dun & Bradstreet Partner on Credit Referencing

 

NMB Bank has entered into an agreement with Dun & Bradstreet Credit Bureau to strengthen its credit management processes and curb defaulting.

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This partnership is expected to reduce the banks share of non-performing loans. In 2014 financial results, the Non- Performing Loans stood at 2.6 per cent the lowest in the banking industry rate of 5 per cent.

The NMB Managing Director, Ms Ineke Bussemaker, said the partnership has come at the right time where banks are working hard to make sure that they have as lower nonperforming loans as possible.

“With this partnership, Dun & Bradstreet will support NMB to do quick and prudent credit decision as well as increase customer loyalty and positive impact on business growth.

Dun & Bradstreet therefore would play a key role in the growth of the entire economy and let us hold the idea for the better debt culture that benefits all of us” said Ineke.

The Dar es Salaam Stock Exchange (DSE) listed bank, NMB believes its partnership with Dun & Bradstreet would improve the NPL even better.

Credit Reference Bureau has become part and parcel of credit processing within NMB whereby CRB check will be done to all loan applications for further processing.

She pointed out that NMB is the largest bank in terms of network and distribution with over two million customers hence it was in need of this partnership to help the internal credit processing.

The Dun & Bradstreet Credit Bureau General Manager, Mr Adebowale Atobatele, said: “We are delighted to have NMB subscribe to our Credit Reference Bureau Services and with the innovation of automated credit checks, we believe that NMB’s overall objectives remains aligned with ours and that the whole process culminates in a new lending, borrowing and repayment behaviour that delivers to us all a stronger and inclusive financial sector”.

Mr Atobatele further said that the system will help in lending and repayment behaviour and automatically eliminate loan defaulters.

With the new relationship between NMB and D&B, analysts believe that the past behaviours of serial loan defaulting and subjective lending have come to an end as now, all credit applications will have to be vetted thoroughly to ensure that creditworthy applicants get access to loan as promptly as required.

SOURCES: See links below;

NMB and Dun & Bradstreet Partner on Credit Referencing(English)

Kubadilishana Hati (Swahili)

 

 

 

K-Finance Subscribers to Dun & Bradstreet Credit Bureau

In a move aimed at strengthening its credit appraisal process and protecting itself from exposure to serial defaulters K–Finance Limited, one of Dar es Salaam’s fastest growing Microfinance Institutions has engaged the services of Dun & Bradstreet Credit Bureau to provide Credit Information and related Services.

Speaking on her institution’s decision to engage Dun & Bradstreet, Chief Executive Officer of K-Finance Devotha N. Minzi said, “For us at K-Finance, we believe that it is important that we make use of the best means available to protect our institution from losses caused by defaulters so that we can channel our resources at providing quality services to our customers and fulfil our vision of mentoring, coaching and empowered entrepreneurs. Also, we believe that the use of credit reports will help reduce the cost borrowing for customers who have a good record of repaying loans Having conducted our assessments, we concluded that Dun & Bradstreet is our best partner – in terms of people, skill and infrastructure required to serve us and meet our requirements. Dun & Bradstreet have demonstrated their capability and competence and we are confident that we made the right choice.”

The move by K-Finance comes just has Dun & Bradstreet recently met with Microfinance Institutions in Dar es Salaam to brainstorm on how to ensure the participation of MFIs in Tanzania’s Credit Reporting System. Speaking at the offices of K-Finance where the contract-signing took place, General Manager of Dun & Bradstreet Credit Bureau – Adebowale Atobatele said, “We would like to thank the Management of K-Finance for making what we consider to be a very intelligent and informed choice. Their decision to engage us as their Credit Reference Bureau service provider, further demonstrates the market’s confidence in our capability. We are unwavering in our commitment to delivering the best possible Credit Reporting System in Tanzania and have intitated the process of building a central data repository for MFIs in Tanzania. It is our hope that with the support and participation of other stakeholders a truly all-inclusive, fair and credible credit reporting system will be established in Tanzania in no distant time.”

Microfinance Institutions world-over are directly involved in bringing financial services to a large number of unbanked and under-banked people and have been described as one of the most effective means of deepening financial services, eradicating poverty and promoting financial inclusion.

However, analysts have said, that MFIs are more exposed to losses and have over time struggled with a high ratio of non-performing loans due to unavailability of information needed to assess the credit worthiness of borrowers and also, the general high risk nature of micro lending as a business.

It is expected that the existence of Credit Bureaus like Dun & Bradstreet will help protect and strengthen the role of Microfinance Institutions in building a strong economy.

Credit bureau firm conducts public education. Article written by Evance Ng’ingo

The economy stands to gain a lot should everyone know about the existence, role and benefits of the credit reference bureau.

The benefits also would come if many people, especially borrowers make good use of the credit bureau products and services. Dun & Bradstreet Credit Bureau Tanzania Limited, General Manager, Mr Adebowale Atobatele said the bureau cut lending risks as defaulter risks is reduced.

“Successful economies do not just happen but they are cultivated and we all have a responsibility to cultivate our own economy by ensuring that those who deserve to get access to credit for productive use actually do,” Mr Atobatele said.

He added: “thus when people are given loans they should repay thus ensuring that more people get access to credit”.

The general manager was speaking in a one day seminar with students from the Institute of Finance and Management (IFM) and the University of Dar es Salaam (UDSM).

Dun & Bradstreet hosted the University students to a seminar at its Dar es Salaam offices.

As part of efforts to create awareness about the existence, usefulness, functions and benefits of Credit Bureaus in Tanzania, Dun & Bradstreet hosted the students of the Institutes of Finance and Management and the University of Dar es Salaam to a seminar at its Dar es Salaam offices today.

The event which featured a presentation co-delivered by staff of Dun & Bradstreet Credit Bureau Tanzania Limited, was attended by 40 participants drawn from both the University of Dar es Salaam and the Institute of Finance and Management.

Participants at the seminar revealed their excitement to learning about Credit Bureaus and also about Dun & Bradstreet. One of the participants said, “before now, I knew very little about credit bureaus. In fact, I thought that Credit Bureaus are used as a blacklist but today, I know better. Thanks to D&B for this seminar”

Also speaking, Dr. Bill Kiwia (PhD), said that “the importance of a credit bureaus in an economy can not be over-emphasized and we are grateful to Dun & Bradstreet for hosting this seminar. Today our students are better informed about Credit Bureaus and have learned about the importance of being responsible with money. D&B has done well and we hope that more of this seminar will take place soon”.

During the presentation, General Manager, Dun & Bradstreet Credit Bureau Tanzania Limited gave a call to all Tanzania to embrace the concept of Credit Bureau as a tool that aids access to credit on the one hand and responsible lending on the other. According to Mr. Atobatele, the economy stands to gain a whole lot more if everyone knows about the credit bureau and make good use of its product and services. In his words “successful economies do not just happen. They are cultivated and we all have a responsibility to cultivate ours by ensuring that those who deserve to get access to credit actually do”.

Dun & Bradstreet Credit Bureau Tanzania is a subsidiary of Dun & Bradstreet Credit Bureaus Limited – a company that has been actively involved in building Commercial, Consumer and SME credit bureaus all across the world.

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Maintain healthy credit scores. Article written by Jagjit Singh, Financial Advisor.

BEFORE I deliberate on today’s topic, it is important to state what prompted me to choose this topic.Till recent past the concept of ‘Credit Reference Bureau‘ was not prevalent in Tanzania.

But now it is the thing of the past, as the Central Bank (BoT) has already issued licences to few entities to render services of a credit reference bureau. But before we proceed, let us understand in simple terms what a credit reference bureau is.

A credit reference bureau means an entity specialised in the collection and sale of credit performance information for individuals and companies.

So going forward your credit behaviour will be monitored to determine how ‘creditworthy’ you are and this is where it comes your ‘credit score’ ­ healthy or unhealthy. Credit is one of life’s great ‘catch­22’ situations. Let’s say you’re fresh out of college and wants to get your first credit card.

You dutifully fill out the forms and wait for the reply, only to find out a few weeks later that you’ve been rejected. Why? One of the possible reasons could be that at this stage you are not ‘Creditworthy’ in the eyes of the bank, to start with.

The above type of situation for a student who is just venturing into the financial world is easily understandable. However, if a similar instance happens involving any other respectable person, the situation could really be embarrassing for that person.

These instances demonstrate how important the word ‘creditworthiness’ is for any credible human being in today’s world. But before I proceed further it is important to clarify that ‘creditworthiness’ of any person is not judged solely on one’s level of richness or poverty, but there are many other factors which determine a person’s creditworthiness.

It is quite possible that one person may be poor but enjoys healthy credit scores than the one who may be rich in terms of their respective levels of income but still has poor credit scores. So when I state how creditworthy you are, it does not have any correlation with one’s level of income.

Although, I agree that there are many polite ways to judge someone’s creditworthiness without possibly offending anybody. Having understood the importance of ‘creditworthiness,’ let us attempt to elicit the meaning of this wonderful word, which quite often is used as one of the important barometers in the modern financial world.

In simple terms we can say that it demonstrates one’s ability to borrow money. The better one’s creditworthiness, the more likely it is that a bank or other financial institution will extend credit. In other words, ‘creditworthiness’ refers to an assessment of the likelihood that a borrower will default on their debt obligations.

It is based upon many factors, such as their history of repayment and their ‘credit score.’ Lending institutions also consider the availability of assets and extent of liabilities to determine the probability of default.

Thus, in conclusion, we may say that creditworthiness is a creditor’s measure of an individual’s or company’s ability to meet its debt obligations. From the above one can easily comprehend that it is not very difficult to establish one’s own creditworthiness.

The first step in evaluating your own creditworthiness is to look at your own money. How much money do you have to repay debts?

Do you have a savings account and how much in cash savings is in your account? This is a factor that you should evaluate.

It is one of the biggest deciding factors of whether or not you are credit worthy to get a bank to lend you money for a major loan of a mortgage or commercial loan for a business. Your own financial stability gives a good sign to the lenders that you can repay debts.

 

There are some factors/transactions which may impair one’s credit scores if not handled properly. Some examples of such transactions are:

(a) Late payments ­ How many late payments do you have on your credit card report? More recent late payments (below 30 days) will not be as problematic as older ones i.e. those older than 3 months.

(b) Delinquencies ­ A credit card company will report your late payments as delinquencies if you fail to pay their minimum payments. Some banks will report after 30 days and most report after 60 days.These delinquencies tend to remain on your report for 7 long years.

(c) Bankruptcies ­ Complete failure to repay debt. The more recent the bankruptcies are, the worse they look to lenders.

(d) Outstanding Debt ­ How much money you own or how much credit you have used up?

(e) Credit History Length Thelonger the length of credit history, the more favourable you look in the eyes of the lenders. This is just another factor of having experience and be able to handle credit.

Few people think of evaluating their own credit worthiness prior to applying for credit. It has become a part of the financial culture to wait for the credit card company or the lending institution to tell us if we got the credit we applied for or that we didn’t.

Having the foresight to evaluate your own credit worthiness shows a degree of common sense and a willingness to spend a little time on research instead of waiting for two to three weeks to be told by the lending party if we are creditworthy or not. Before I stop writing on the subject, let me share with you a famous quote which states that “as you sow, so shall you reap.”

This proves an important point on our today’s topic that your own actions (or for that matter inaction) will determine how creditworthy are you ­ the choice is yours. Cheers!!!