Al Etihad Credit Bureau (AECB), a federal government company specialised in providing UAE-based credit reports and other financial information, has announced that it will be operational within the next three months.
AECB, which is supported by the UAE federal government, has approached all UAE-based banks to sign agreements and provide credit information via a process which will be completed by the end of January 2014. Additionally, AECB is currently finalising the installation of an electronic link with banks and financial institutions operating in the UAE in order to create a comprehensive database of individuals’ and businesses’ credit information.
AECB previously organised a series of workshop sessions attended by key partners of the bureau from the banking and financial sectors which were designed for stakeholders to give feedback and input into the new system. The outcomes of the sessions have helped to build the foundations for the most important components of the credit bureau, including the data dictionary, credit file formats and the necessary requirements to ensure accuracy in all mandatory and optional fields. AECB has used the feedback from partners to drive the customisation of the system to fit the UAE’s needs.
The credit bureau is currently completing the final steps of its pre-operational phase, which includes all financial institutions testing their data validity and accuracy in order for credit reports to be provided in a virtual based technique, along with training users (on establishing internal roll-out plans for their operations and preparing to receive credit reports) and the finalisation of agreements between partners and the bureau to provide credit information. During initial testing, a number of financial institutions were able to provide over 90% accuracy and consistency in the submission of credit information.