Business
Credit Bureau Operator Seeks Non-Bank Collaboration
The Managing Director, CRC Credit Bureau Ltd., Mr Tunde Popoola, has urged non-bank companies to also employ the services of credit bureaus in their business dealings.
Popoola said in Lagos that travel agencies, hotels, retailers, manufacturers, leasing companies, audit firms and employment agencies required the services.
“Apart from commercial banks and other financial institutions, other businesses need credit bureaus to reduce their volume of losses or bad debts,.“ he said.
Popoola said credit bureau operators have jointly made contacts and presentations, held meetings and conferences with other stakeholders in the economy to improve their transactions.
Popoola, however, said much more advocacy was necessary to encourage non-bank companies to engage the services of credit bureaus, saying that many companies were not using their services..
He urged the Federal Government not to register too many credit bureaus, saying that “most economies start with one or a maximum of two“.
Popoola said that some African countries had only one credit bureau, except South Africa, Ghana and Nigeria.
“The more bureaus you have, the costlier it becomes for borrowers to get loans or for customers to get credit facilities from non-bank business outfits,“ he said.
Reports says that the Central Bank of Nigeria (CBN) in 2009 licenced three credit bureaus for credit rating of borrowers from banks..
The three bureaus are XDS Credit Bureau Ltd., Credit Registry Service Ltd. and CRC Credit Bureau Ltd.