Metropol Credit Reference Bureau (CRB) hosted the Digital Credit Providers Breakfast Meeting in Nairobi where stakeholders stressed the need for financial inclusion, credit information sharing Fraud, Compliance, and Risk-Based Pricing in Credit Information Sharing (CIS) mechanisms.
The session themed “The role of data in customer centricity and financial inclusion” revealed the reduced cases of harassment and debt shaming among Kenyans.
Key stakeholders among them the Kenya Bankers Association (KBA) said Kenya still faces challenges of data privacy, financial inclusion, and credit information sharing.
Addressing Fraud and Compliance
The meeting placed a strong emphasis on the challenges of fraud, compliance, and the implementation of Risk-Based Pricing within the CIS mechanism.
Dr. Samuel Tiriongo said there is still a critical nature of mitigating fraud in the digital credit marketplace.
According to Dr. Tiriongo, the future of the credit market is intrinsically linked to risk-based pricing models.
He stressed the integral role of Credit Reference Bureaus (CRBs) are playing in assigning credit scores based on borrowers’ historical data.
Also present was Data Protection Commissioner, Immaculate Kassait.
According to Kssait, Kenya has witnessed a drastic decline in complaints against financial service providers.
Also Read: Nairobi Hosts 2024 NADPA Conference on Data Protection in Africa
Kevin Mutiso, the chairman of DFSAK said his association witnessed the “positive impact of regulating the digital credit market space” adding that such measures have been instrumental in curbing fraud within Kenya’s digital credit market.
“We have been working collaboratively with the ODPC to ensure customer protection. This has led to a significant decline in harassment by over 74 percent. The practice of debt shaming is nearly eradicated, and those who continue to harass customers do so at their own peril,” said Kevin Mutiso, Chairman of DFSAK.
Metropol’s Database: A Pillar of the Credit System
Metropol CRB has an extensive database of Kenyan borrowers, in which the bureaus, Chief Executive said has benefited millions of lenders in accessing borrowers’ credit history.
All lending institutions rely on Metropol’s credit scoring system in line with the risk-based pricing model – which includes Kenyans of all cadres in the lending ecosystem.
Kipyakwa called upon digital credit providers to adopt the CIS mechanism and collaborate with Metropol to further strengthen the credit market in the digital realm.
AnneStella Mumbi, CEO of Tala Kenya, shared her company’s journey in the digital lending space. Tala Kenya has embraced the information-sharing mechanism, marking a milestone by disbursing loans amounting to Ksh.300 billion over the past decade.
Metropol wrapped the event with a call to all stakeholders on the need for continued collaboration among digital credit providers.
Embracing CIS and working in tandem with institutions like Metropol, stakeholders said are eager to creating a more inclusive and secure financial ecosystem for all Kenyans.
