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