NMB Head of Personal Banking, Abdulmajid Nsekela (right) together with CEO & Managing Director of National Microfinance Bank Plc, Ms Ineke Bussemaker speaks to the media yesterday in Dar es Salaam.
NMB Plc Head of Personal Banking, Abdulmajid Nsekela speaks to the media yesterday in Dar es Salaam.
•Bank to process existing customer’s loans in one to four days
•Over 700 credit applications per day
NATIONAL Microfinance Bank Plc (NMB) has launched the first ever automation between its Credit Scoring tool and the database of the credit reference bureau (CRB’s) in Tanzania that will see the bank moving from manual way of extracting credit information from the CRB’s. The automation will reduce the turnaround time for processing and issuing retail loans.
The Credit Scoring Tool is in use for application of Salaries workers loans and Small and Medium Size Enterprises. NMB processes over 700 loans a day through the credit scoring tool. With the integration between the Credit Scoring Tool and CRB’s, NMB customers from over 170 branches countrywide will start enjoying afaster loan application, processing and disbursement process. Dependent on the loan history, this process should take between one and four days compared to at least two weeks before. NMB processes over 700 loans a day. Inthe system, currently Salaries Workers Loans and Micro and Small Size Enterprises loans will be processed, approved and monitored.
NMB Plc press conference…
NMB Managing Director – Ineke Bussemaker said the automation will help NMB to make better informed credit decisions, champion responsible lending, promote financial inclusion and contribute to the country’s economic growth.
Ms Ineke added that “with this integration between Credit Scoring Tool and CRB’s, the borrowers forall type of loan applications will have their creditworthiness assessed via an automated system that connects NMB loan origination system with credit reference bureau repository”.NMB has been performing the leading role in supporting a transparent, efficient and well-functioning financial sector.
NMB has made substantial investments in the improvement and automation of credit processes by implementing the loan origination and credit scoring software of Simbuka. This enables the automatic information exchange with the CRBs, without any delay of the application process for prospective borrowers.
The application of Simbuka has helped NMB to have one of the most comprehensive and trustworthy credit databases in the country. Also the quality of the loan portfolio has improved consistently as demonstrated in low PAR and NPL rate.
In 2012, the Bank of Tanzania (BoT) initiated the set-up of a central database with credit history information, the Central Reference Databank. Simultaneously two private sector organizations, CreditInfo Tanzania and Dun & Bradstreet Credit Bureau Tanzania, were appointed to act as CRBs and set-up systems to amongst others handle the credit information exchange between financial institutions and this database.
NMB Plc press conforence…
Since then both CRBs developed their own systems which have gradually been adopted by Tanzanian financial institutions. In 2015 the majority of Tanzanian financial institutions are exchanging credit information with both CRBs on an ongoing basis. Until now extracting credit information from the CRB’s was arranged via a manual request.