Emirates Islamic Bank integrates Emcredit services to efficiently manage risk

1. Bank to use Credit Scope to mitigate risk; calls for greater information sharing and increased transparency
2. Joins Emcredit’s growing member base

In a move to enhance its risk management policies, Emirates Islamic Bank (EIB) has signed an agreement with Emcredit to avail of its credit information reporting services. This announcement was made today by Emcredit, the UAE’s first government-backed credit bureau.

Through Emcredit’s Credit Scope, which provides factual records of a company’s or individual’s credit history, EIB will gain an accurate perspective on its borrowers’ repayment history as well as their capability to service new and existing debts. This will enable EIB to make more informed lending decisions, improve services to its existing customers and tailor products and services based on the credit history of its customers.

Ali Ibrahim, Managing Director, Emcredit, said: “We are very pleased to announce this partnership with Emirates Islamic Bank, which demonstrates the value that Emcredit can bring to Islamic financial institutions in managing their credit books and credit expansion. With provisions for bad loans rising, it has become imperative, now more than ever, to closely assess a borrower’s credit behaviour.”

Faisal Aqil, General Manager, Retail Banking of EIB, said: “Risk management is central to Islamic banking as well as our growth and expansion strategy. An accurate and comprehensive perspective on the credit habits of potential and existing borrowers positions us to tailor our solutions for the benefit of customers.

“Today, risk mitigation through collective efforts will greatly benefit the banking and finance sector in the country. EIB calls for greater information sharing and increased transparency to mitigate risk and enhance risk management practices.”

Established in June 2004, and part of the Emirates NBD Group, EIB provides a wide range of Islamic personal, commercial and investment banking products and services.

About Emcredit:
Emcredit is the UAE’s pioneer information services company. It provides a range of comprehensive, accurate and timely information solutions such as credit bureau services, cheque-honouring reports, business background reports and other risk assessment tools. Emcredit’s decision support tools enable private and public entities to gain greater perspective into the risk profiles of individuals and companies, thereby empowering them to make more informed business decisions.

The company has a rich database on individuals and companies in the UAE, including 5.6 million consumer identification records, payment behaviour information on consumer and commercial borrowers and 35 per cent of mortgage data in the UAE. It has established data-sharing agreements with several government departments, to power its information solutions. These government entities include Dubai e-Government, Dubai Police, Department of Economic Development (DED), Dubai Land Department and its subsidiary, the Real Estate Regulatory Authority.

Emcredit is registered as a private entity and is based in the Dubai International Financial Centre (DIFC), which is regulated by the Dubai Financial Services Authority (DFSA). Emcredit operates in line with the DIFC’s Data Protection Law.

Emcredit was incorporated in January 2006 under the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. It is a fully owned subsidiary of the Department of Economic Development (DED), Government of Dubai.