Emirates NBD to offer preferential lending and pricing based on Al Etihad Credit Bureau scores
Emirates NBD, a leading bank in the region, today announced that it will offer customers preferential lending and pricing based on the Al Etihad Credit Bureau (AECB) Consumer credit score, across all retail loans and credit cards.
The bank has aligned its internal credit behaviour scoring capabilities with the AECB score to create an integrated matrix of eligibility and risk based pricing, thus enabling all bank customers to benefit from quicker decisions and higher loan and card facilities based on their credit behaviour. The integrated system allows Emirates NBD to extend preferential benefits to new customer segments such as non-salary transfer loans to customers employed with non-listed entities, and pre-approved credit facilities with preferential pricing.
Commenting on the announcement, Suvo Sarkar, Senior EVP & Group Head – Retail Banking and Wealth Management said: “Emirates NBD is pleased to fully integrate and leverage the AECB credit score within our lending processes to benefit our customer base. The integrated system not only rewards creditworthy customers with competitive rates and better range of credit facilities, but also motivates all customers to maintain a healthy financial record and inculcates responsible financial behaviour.”
Commenting on the usefulness of the AECB score, added Sarkar, “Having access to the credit scores of those UAE residents who are not existing payroll customers gives us the added benefit of being able to accurately price loans as well as offer pre-approved credit facilities for non-Emirates NBD customers.”
Manoj Chawla, Group Chief Risk Officer, Emirates NBD commented: “In line with international best practice, AECB’s standardised credit scoring is a superior risk management tool that ensures all of Emirates NBD’s retail banking customers are assessed by the same behavioural metrics. While the customer receives a fairly priced loan or credit facility, the bank’s portfolio quality strengthens, reducing the need for provisioning, and onboarding creditworthy customers who pose less risk. The initiative is a win-win for banks and customers alike, and is now utilised by all of Emirates NBD’s retail asset products to enable full transparency and maximise efficiency.”
Launched in April this year, the AECB Consumer Score is the first scoring system for UAE’s retail banking customers, exclusively developed for risk prediction using historical data on repayment behaviour reported to Al Etihad Credit Bureau. The Credit Bureau Score is a three-digit number, ranging from 300 to 900 with a lower score indicating a higher risk and likelihood of missing loan or card payments. Emirates NBD was among the first banks in the UAE to report customer data to the Al Etihad Credit Bureau.