CRC Credit Bureau Introduces FICO Score to Enhance Consumer Lending
The Nigerian consumer space and economy will soon witness a significant growth as CRC Credit Bureau Limited and Fair Isaac Corporation (FICO), an American company with over 50 years of experience in data and analytics have partnered to introduce FICO Score in the country.
Unveiling the package in Lagos on Tuesday, the Managing Director/Chief Executive Officer of CRC Credit Bureau Limited, Mr. Tunde Popoola, said FICO Scores is meant to help banks and other retailers to be able to appropriately dimension the risk on borrowers who are basically individuals
He said: “FICO Scores will know the risk level of every borrower and able to dimension whether it is good, excellent, average or bad. And with that, you can now have dimension of relationship you want to have with such an individual.”
According to Popoola, the introduction of FICO Score will change the face of consumer lending in Nigeria as it will give opportunity for financial inclusion and private individuals who don’t have opportunity will now have opportunity to borrow and also give opportunity to lenders to give loans to people who have credit worthy based on the information they will get from FICO.
He said that FICO Scores is a three digit scores that is between 300 to 850, noting that the higher it is the better the person is rated and the lower it is the higher the risk that individual is carrying.
“No institution will give money to somebody with low scores. And once you have the scores (as lenders) you can now decide to differentiate who you want to lend your money to, whom you want to give your product to and the kind of condition that you want to attach to such relationship between lenders and borrowers and buyers of products and makers of products. Those who score between 700 and 850 are excellent people and such people you sell to them at very reasonable price or rate and probably without any condition attached,” he said.
In his remarks, South Africa Country Manager, FICO, Derick Cluley said FICO Score is a game changer that has just been introduced to Nigeria.
Speaking further on how FICO works, Cluley said it is just a number that is used to assess consumer who want borrow money. And that is why he believes it is a powerful tool for any credit loan population.