“Credit Information” issues the assessment despite the absence of a history of bank facilities

Despite the absence of bank facilities, salary, checks, telecommunications and electricity bills are “alternative data” for credit assessment

Al-Etihad Credit Bureau announced the expansion of the credit assessment issuance, to include more than 90% of individuals and companies in the company's credit registry.

The company explained that due to the lack of a history of bank facilities, 30% of those registered in the credit registry were not eligible to obtain a credit assessment, which prompted the company to improve credit assessment models using “alternative data”, to issue the assessment to individuals and companies despite the absence of a history of bank facilities. , pointing out that the "alternative data" includes the monthly salary, the record of checks that have been cashed and returned, and the obligation to pay the monthly bills for both telecommunications companies and water and electricity service providers.

credit history

In detail, Al-Etihad Credit Bureau announced the expansion of the credit assessment issuance, to include more than 90% of individuals and companies in the company's credit record, whose number exceeds 13 million customers, compared to 70% in the past.

The company stated in a statement that the alternative data information added by Al Etihad Credit Bureau within the credit assessment calculation process allows a wider segment of individuals and companies to establish their credit records in the country, thus benefiting from the range of products and benefits related to credit assessment, as the credit assessment will be issued on Although there is no history of credit facilities with banks and financial institutions.

right decisions

CEO of Al Etihad Credit Bureau, Marwan Ahmed Lutfi, said: “Financial institutions and many other institutions rely on the data provided by (Al Etihad Credit Bureau) to help make correct decisions regarding dealing with their customers. Therefore, it has become necessary for us to We are constantly evolving our methodologies and tools, in line with the evolving requirements of companies, business sectors and populations as well.”

He added: “30% of those registered in the credit registry were not eligible to obtain a credit assessment, due to the absence of a history of bank facilities.

At a time when credit data has traditionally been linked to bank obligations, individuals and companies build their credit history when completing their non-bank payments, which prompted (Al Etihad Credit Bureau) to work on improving credit assessment models using alternative data, to issue the assessment to individuals and companies despite the lack of The existence of a history of banking facilities.

surrogate data

According to the company, the "credit assessment" takes into account the alternative data added by the "Al Etihad Credit Bureau" within the calculation process for individuals and companies, which includes the monthly salary, the record of checks that have been cashed and returned, and the obligation to pay the monthly bills for each of the telecommunications companies and water service providers. and electricity.

Thus, the company will build a “credit history” for those people as soon as it receives this data from the information providers.

The "credit assessment" will now appear for companies and individuals who obtain their credit reports through the company's website, its smart mobile application, or customer service centers.

The company creates, maintains and manages the credit record exclusively in the country, which is used for several specialized products, including the credit report and assessment.

triple number

The “credit assessment” issued by the “Al Etihad Credit Bureau” refers to a triple number ranging between 300 and 900, and it shows the extent to which an individual or a company is likely to fail to pay a financial obligation on time within the next 12 months.

A low credit rating indicates a high level of risk, while a high credit rating indicates a low level of risk for individuals or companies.

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