SACCO credit data set for verification

Savings and Credit Co-operative Societies (SACCOs) could soon be compelled to guarantee authenticity of borrower information as the financial sector gets closer to complete up a data-sharing hub.
The hub will reject data that doesn’t meet set quality standards even as the Sacco amendment Bill which is pending in National Assembly awaits second reading.
The Bill doesn’t make sharing information a mandatory obligation. Speaking yesterday during a forum organised on credit information sharing in Kenya, the feeling among the stakeholders was that third party credit provides including Fintechs (operators of mobile lending apps) do not have a clear guideline on quality, thus raising concerns that the responsibility hangs in the balance.
In the past, lenders relied on bank information including savings and past loan repayments to judge credit worthiness, but things have since changed with the onset of Fintechs which are now using mobile data to determine credit worthiness.
Central Bank of Kenya has listed only three credit reference bureaus namely Creditinfo Credit Reference Bureau, Credit Reference Bureau Africa transacting as TransUnion and Metropol Credit Reference Bureau Limited.
Mobile apps can now tap information directly from interactions with potential borrowers in the background using telecommunications records and use them as part of risk assessment.
Online forums such as Facebook are some of the most popular online platform helping to determine credit worthiness as credit information sharing deepens.
During the meeting, TransUnion also unveiled an application which will help consumers get credit information online without customers necessarily availing themselves physically.
The application allows consumers pay outstanding debts in real time and get a clearance certificate without visiting the reference bureaus. TransUnion county director Rose Muturi said the Nipashe 2.0 application will come in handy for those people who want to check their positions from across the country saving them travel costs.
“The timing is perfect. We have elections coming soon, and any potential candidate is required, by law, to have a credit bureau clearance certificate. Potential candidate can now check their status, clear any negative listings and obtain a clearance certificate,” she said.

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