Banks in the UAE are now able to track credit history of applicants via an app that the country’s credit bureau launched last month, which links all your financial details with your Emirates ID.
Al Etihad Credit Bureau launched the Application-to-Application (A2A) advanced feature in January.
A bank will now be able to instantly extract the data they need – like finding out if you’ve defaulted earlier with another bank – with the use of this app by simply inputting your Emirates ID.
Based on your credit history that they can instantly access, the bank/s will therefore be able to decide on-the-spot whether or not you qualify for a loan.
The bureau said that Mashreq has already become the first bank to enable this advanced feature, with several others set to soon follow suit.
Any corporate client of Al Etihad Bureau - banks, finance companies or even telecom operators – can now use personal information extracted from an applicants’ Emirates ID chip to gain access to your financial data which is critical to their decision-making.
They will be able to automatically use that information as input for making a credit report enquiry, and retrieve a set of data fields chosen by the entity and input it directly into an internal decision-making systems in order to shoot back and an immediate response, the bureau announced.
“This transformation is going to improve internal processing, eliminate human errors in data entry and ultimately benefit the customer in obtaining preapprovals on the spot,” the bureau said.
This will not only eliminate the waiting period for genuine applicants, but also weed out potential loan defaulters who may have otherwise banked on human error to land a loan without qualifying for it.
“Banks, finance companies and telecom operators can now design internal decision-making systems that instantly read information from Al Etihad Credit Bureau and use it for customising products, offers, services and rates while customers are being serviced,” said Marwan Lutfi, CEO of Al Etihad Credit Bureau.
“With Mashreq being the first bank to adopt this advanced feature, we believe that financial institutions will not only become more creative and innovative in the way they make use of such feature, but also differentiate their offerings and services towards consumers,” he added.
“We are pleased to be the first bank to go live with the new A2A feature,” said AbdulAziz Al Ghurair, Mashreq CEO. “This automated feature will allow us to service our customers better since processing loan applications will be seamless, error-free and most significantly enable faster turnaround,” said Al Ghurair.
Through A2A, credit information will be readily accessible by credit lenders around the clock, virtually enabling sales forces and retail branches to make decisions according to defined credit parameters set at the corporate level in each institution.
This in turn enables corporates to plug specific data where needed in their own systems to take decisions using the valuable data from the bureau that has never been available through such a mechanism in the past.