Emcredit, the UAE-based government-backed credit bureau, has signed an agreement with the Abu Dhabi Islamic Bank (ADIB) to provide credit information services in supporting the bank’s financing activities, reported AME Info.
Under the terms of the agreement, ADIB will provide payment and repayment records of its customers to Emcredit’s data pool. In turn, ADIB will benefit from Emcredit’s credit information reporting and risk assessment services, which are based on data compiled from a range of public and proprietary sources.
Ali Ibrahim, MD of Emcredit, said: “The global financial crisis has brought many issues to the forefront, of which, understanding customers’ repayment behaviour is crucial. As a dynamic bank, blending modern vision with traditional principles of Sharia, ADIB will be able to make more informed decisions based on Emcredit’s in-depth credit information services.
“Credit bureaus are based on the concept of collaboration. ADIB has taken the lead in Abu Dhabi to support the data sharing environment in the UAE. Such proactivity is required in the country, especially in the current economic scenario, to help banks protect themselves against unnecessary credit risks.”
Tirad Mahmoud, CEO of ADIB, said: “Although Islamic banks are generally risk-averse, it is also important to continuously invest in modern systems and tools to strengthen our risk policies in line with the evolving banking landscape. This is important in working towards our goal of becoming a dominant global player in the Islamic finance sphere.”
