Antananarivo, November 26, 2019
Madagascar, CRIF at the World Bank International conference on “Modern Financial Infrastructure Based on Data Sharing: strong added value to financial inclusion"
CRIF took part in the International Conference on “Modern Financial Infrastructure Based on Data Sharing: strong added value to financial inclusion”, jointly organized by the Central Bank of Madagascar (BFM) and the World Bank Group (WBG) on November 26, in Antananarivo.
The purpose of the conference was to discuss the modern methodologies for monitoring credit risk, as well as the benefits they can bring to the credit and services sectors, to consumers, and to the economy in general.
Around 160 participants attended the conference, showing great interest in the topics presented and actively taking part in the event by asking direct questions to the international speakers through an App.
Representatives from leading international banks, MFIs, NBFIs, on-line and new Fintech lender MTOs, and international service providers took the floor to talk about the importance of information sharing for the banking/MFI system and more in general for the financial system of a country; privacy of personal data and the regulatory framework; the impacts of new technology and Big Data in strengthening financial inclusion; and the role of the Public Credit Registry.
Representatives from various CRIF companies and divisions gathered in Antananarivo to offer insights on CRIF’s global experience in developing and managing local credit bureaus. Specifically, Edoardo Borsari – CRIF International Market Director - and Margherita Gallarello - CRIF Project Manager - provided the audience with an overview of the new Private Credit Bureau Project in Madagascar (BIC), managed by CRIF.
Luca Calconi - CRIF Gulf Principal Consultant - delivered a speech focusing on how alternative data can be decisive in formalizing the unbanked population, presenting successful experiences and analyzing the crucial aspects of credit bureau data sharing in detail, helping the audience to better understand how the full and positive sharing of information, the use of scoring models, and other data and technologies, can increase access to credit for countries like Madagascar.
The establishment of the credit bureau by CRIF in Madagascar, in fact, will create new opportunities to increase credit access for businesses, and help consumers to access loans, reducing the risk of discriminatory lending practices.
During the event, CRIF also took the chance to illustrate an important initiative about to start in Madagascar: the launch of the Psychometric Score. The project is a CRIF-World Bank joint investment and two Monetary Financial Institutions have already adopted it. The Psychometric score provides a useful tool for assessing credit risk for unbanked parts of the population, helping to increase financial inclusion in the country.