Financial Security: MFBs staff trained on customer credit checks

In an effort to promote financial security and responsible lending practices, the First Central Credit Bureau in partnership with the Osun State Chapter of the National Association of Microfinance Banks has undertaken a mission to educate officials of the MFBs on the importance of assessing customer credit reports before approving loans.

The informative session took place at the NAMB secretariat in Osogbo on a recent Tuesday.

Leading the discussion was Olajumoke Fasina, the Representative of the First Central Credit Bureau. She elucidated the Bureau’s role in evaluating an individual’s credit worthiness, stating, “When you apply for a loan, lenders need to determine if you’re capable of repaying the borrowed funds. They can achieve this by checking your credit history through the First Central Credit Bureau to assess your financial track record and make informed lending decisions, reducing their risk.”

Fasina also highlighted that individuals could access their own credit reports from the Bureau, giving them valuable insights into their credit standing.

These credit reports serve as vital tools for Microfinance Banks to accurately assess their customers’ creditworthiness, ensuring responsible lending practices and safeguarding their financial stability.

Alhaji Tunde Lawal, Chairman of the National Association of Microfinance Banks in Osun State and director at Ilobu Microfinance Bank, praised the Bureau for their educational efforts. He stressed that the downfall of Microfinance Banks often results from customers failing to repay their loans, emphasizing the need to address this issue through information technology.

In response, the Credit Bureau offered to assist Microfinance Banks in curbing such customer behavior. Any customer with outstanding payments to a Microfinance Bank in Nigeria will have their debt recorded, encouraging prompt repayment and making it easier for them to request future loans.

Highlighting the challenges faced by banks, Dauda Adebisi-Balogun, the General Secretary of NAMB and Managing Director of OSPOLY Microfinance Bank, stressed the importance of assessing customer creditworthiness before granting loans. He noted delays in receiving credit reports from the Bureau, hindering the banks’ ability to make quick lending decisions.

Adebisi-Balogun shared that the Bureau had enlightened them on how to independently access credit reports, streamlining their processes and enabling better customer service.

Representatives from various Microfinance Banks expressed their gratitude for the Bureau’s insights into credit reports, noting that the new tools provided would enhance their banking operations, protect against potential losses, and ensure the financial strength of their customers.

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