Bureau Development in Africa Presented by Gillian McMeekin XDS General Manager.

Bureau Development in AfricaPresented by Gillian McMeekinXDS General Manager

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission

Who is XDS?(Strengths & Experience)

100% Black owned Credit Bureau in SA

Self driven, motivated and highly skilled people with many years of credit bureau experience

Data – integrity, accuracy and comprehensiveness

Effective use of advanced technology

Innovation and Flexibility

Joint Venture Partnership with KPMG

XDS Credit Bureau projects: UK, USA, Spain, Holland, Italy, Middle East, Uganda, Kenya, Tanzania, Ghana, Nigeria, Australia, South Africa.


Highlevel African Challenges:

Existing Environment (Economic and political factors, education and literacy)

Infrastructure- access to information, systems and technology

Consumer Consent

Legislation – Data Privacy Laws and Frameworks for data sharing

Emerging Market data – quality and history, matching techniques, no identity numbers


Data Issues

Prominent Problems :-

Unstructured and informal addresses Swapping of first name and surname Matching of consumers using data other than identity numbers, such as

driver’s licenses, voter registration, date of birth, first name, surname and addresses.

Consumers with identical, similar names living in the same residential areas. Lack of historical credit data Allowing for business and consumer searches Initial and on going Collection of manual public domain records such as

judgements. Scrubbing, validating and ensuring integrity of data received by the

subscribers


XDS Ghana Experience

Challenges:

Cash Based Society Data Sharing Legislation Infrastructure


XDS Ghana Bureau Development

XDS entered market in 2003

Education lobbying and speaking to the right people!

The Ghana Association of Bankers (GAB) mandated XDSData to provide credit bureau services to all the banks in Ghana. XDSData then proceeded with all the banks in Ghana, collecting data

Key focus Areas: Signing of contractual agreements for data sharing Simultaneous establishment of a Data Sharing association

Banks currently providing XDS with all sorts of data

XDS responsibilities: Data collection, hosting, effective security and confidentiality, right technology platforms, collection of public record information (bankruptcies, foreclosures, tax liens, and court judgments.)

No Identity System therefore matching crucial, drivers licenses, addresses, etc


GHANA Legislative Environment

Ghana Credit Bureau BillFramework for the licensing, operation and the supervision of credit bureaus in Ghana, to establish the conditions for the formation, processing, storage and disclosure of credit information, and to provide for related matters.

Bank of Ghana - Supervisory/ regulatory role/ Licensing/Inspections and Audits

Credit Bureau vs Debt Collection agency Banking Association/Data Submission Data : “Person” – natural person, artificial person but

excludes the Government of Ghana


GhanaToday

Financial Sector Reforms -2005 Includes: The Foreign Exchange Bills and Cheque Bill, which

will be tabled before Parliament in the course of the year. The Ministry of Finance in addition pursue the passage of

regulatory laws such as Credit Bureau Law, Non-Bank Financial Institutions Law and Money Laundering/CFT Law to strengthen Payment Systems.

Credit Bureau Bill prediction – will be passed by end of 2006


XDS in Nigeria

Nigerian Environment:

No identity system No viable data sharing mechanisms One or two data companies but no viable and fully fledged credit

bureau No data privacy legislation or frameworks in place for data sharing

To date : first reading of credit bureau bill taken place


Roadmap to Establish an effective Credit Environment in Nigeria

Roadmap to Facilitate

an effective Credit Environment Participants Actions

1. Establish a Credit Bureau Association Relvant Key Stakeholders Regulatory Framework to

govern credit bureaus

2. Establish a Data Sharing Association CRIMA + other Regulatory Framework for

Data Sharing

Establish Code of Conduct

3. Create committee/ working group Credit Grantors Create Legislative framework

Lobby with government Bureaux for bureaux to operate

bureau to operate Government

other stakeholders

4. Negative Data Sharing CCA Sharing of Default and Fraud

Bureaux Data

Positive Data Sharing


In Closing

Work with Key stakeholders – Banking associations, other stakeholders parliament and government

Play an instrumental role in lobbying for a effective legislative environment

Understand the consumer landscape (including partnering with local citizens)

Understanding information constraints

Understanding Infrastructure constraints

Provide all the necessary skills and experience

From the beginning look at matching techniques and alternative data sources within the country

Persevere, persevere, persevere and prepare for the long haul

Thanking you...For your time and your attention.

Bureau Development in Africa Presented by Gillian McMeekin XDS General Manager.

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Transcript of Bureau Development in Africa Presented by Gillian McMeekin XDS General Manager.