Enables EIB to make more informed lending decisions, improve services to its existing customers and tailor products and services based on the credit history of its customers
Emirates Islamic Bank (EIB) has signed an agreement with Emcredit, UAE’s government-backed credit bureau, to avail its credit information reporting services. Reportedly, through Emcredit’s Credit Scope, which provides factual records of a company’s or individual’s credit history, EIB will gain an accurate perspective on its borrowers’ repayment history as well as their capability to service new and existing debts.
This agreement is expected to enable EIB to make more informed lending decisions, improve services to its existing customers and tailor products and services based on the credit history of its customers.
Ali Ibrahim, managing director of Emcredit, said: “We are very pleased to announce this partnership with Emirates Islamic Bank, which demonstrates the value that Emcredit can bring to Islamic financial institutions in managing their credit books and credit expansion. With provisions for bad loans rising, it has become imperative, now more than ever, to closely assess a borrower’s credit behaviour.”
Faisal Aqil, general manager of retail banking at EIB, said: “Risk management is central to Islamic banking as well as our growth and expansion strategy. An accurate and comprehensive perspective on the credit habits of potential and existing borrowers positions us to tailor our solutions for the benefit of customers.”
“Today, risk mitigation through collective efforts will greatly benefit the banking and finance sector in the country. EIB calls for greater information sharing and increased transparency to mitigate risk and enhance risk management practices,” he added.