As part of efforts aimed at enhancing the flow of credit in the country, the Central Bank of Nigeria (CBN) and operators of Credit Bureaux in the country are considering the introduction of a unique means of identification in the financial service industry.
Managing Director and Chief Executive Officer, CRC Credit Bureau Limited, Mr. Tunde Popoola, dropped this hint at a forum in Lagos Wednesday.
Poopola stressed that developed economies where bureaux drive their credit process, have functional national identification system.
“In Nigeria, we have a national identity programme that is incomplete because not every Nigerian has it. Everybody was looking up to the National Identity Management Commission (NIMC) to roll out a unique identification for every Nigerian, but that is yet to happen. And that is why you see the critical private sectors doing their own identification.
“So the financial services industry also needs a very good means of identification to be able address the issue of fraud and to be able to identify people correctly because the issue of assess to loan is very fundamental,” the CRC Credit Bureau boss added.
Earlier, the Guest Speaker and Senior Vice President, Dun and Bradstreet, Mr. Miguel Lienas, described Credit Bureaux as a very big business and challenged banks to venture into it.
Lienas who presented a paper titled: “Credit Bureau Best Practices,” said the activities of Credit Bureau had changed the face of the financial industries in countries in Latin America.
He argued: “I believe that credit bureaux are one of the most important powerful economic tools in any economy. It is an essential tool to make people part of the financial sector. I strongly feel that Nigerian banks do not fully understand the concept of Credit Bureaux because they (banks) would find out that they will be doing a lot more of business when they engage Credit Bureaux.
“The relationship between banks and Credit Bureaux in Dominican Republic helped banks in that country to withstand the shock of the global economic crisis. While banks were attacked in the United States of America (USA), we saw the danger ahead and advised banks in the Dominican Republic.”