The Managing Director, CRC Credit Bureau, Mr Tunde Popoola, has attributed dearth of accurate biometrics database and awareness as factors hindering credit bureau operations in the country.
Popoola told the News Agency of Nigeria, NAN, in Lagos that decision making would have been quicker and more reliable if lenders had enough information about borrowers at their disposal.
He said that accurate database would accelerate automation of lending processes, isolate bad borrowers and blacklist chronic debtors.
Popoola also said that awareness creation would deepen knowledge of financial sector operators to understand credit bureau services. He advised that there should be concerted efforts by the regulators to encourage non-banking firms to engage in the services.
The expert said that the role of credit bureaus were relevant in the banking sector because they reduce risks and undue transaction costs banks incurred.
The Central Bank of Nigeria, CBN, had in 2009 licenced three credit bureaus for credit rating of bank borrowers.The three bureaus are XDS Credit Bureau Ltd., Credit Registry Service Ltd. and CRC Credit Bureau Ltd.