Mobile subscribers in Kenya can now access [their] credit ratings on mobile phones, thanks to a new SMS-based system dubbed Crystobol SMS system.
The system developed by Metropol Credit Reference Bureau will allow both businesses and individuals to access their credit reports as well as know their credit standing before applying for new loans.
“This is simply a medium of access. Prior to this, if borrowers would want to get their credit report they would have to come to our offices. Now, once they register they can go to the system and pull out their credit report,” said Metropol Managing Director Sam Omukoko.
Omukoko expects the service will ease the lending process by cutting the time financial institutions take to decide on whether to approve a loan application.
Customers will have access to one free report. Subsequent reports are available at KSh500 sent via email, while credit scores would range between KSh200 and KSh300.
The Crystobol system will give customers real time credit status depending on loan repayment history with banks and other financial institutions, suppliers of goods and services as well as utility companies reported to the credit bureau.
The SMS solution will also alert customers in real time of the activities occurring on their credit report.
Currently, financial institutions do not like sharing credit information of their customers with their counterparts. They are only mandated to provide only the negative information. With the anticipated amendments in Kenya’s Finance Act 2011, the trend is expected to change as the institutions would be required to share all information on their customers.
Kenya lacks a detailed credit reports mechanism, since the available details do not include borrowing history from non-traditional lenders such as Micro Financial Institutions (MFI) or Saccos.
