Pakistan’s First SBP Licensed Credit Bureau

October 22nd, 2021

TASDEEQ, PACRA, Analytics Pvt Ltd and Creditinfo Group partner with Pakistan Banks' Association to facilitate wider access to housing finance.

Consortium will develop a market-level application scorecard and income estimation model to boost financial inclusion in Pakistan

22 October 2021 – Pakistan Banks' Association (PBA) recently announced that it has entered into a strategic partnership with a consortium of leading financial services and technology businesses to improve access to finance for low-income segments of the population currently excluded from traditional housing finance.

The consortium, comprised of Creditinfo Group, a global credit information and fintech service provider; TASDEEQ, Pakistan's first SBP Licensed Credit bureau, offering cutting-edge reports, statistical scores, and analytical tools for the financial industry for efficient credit risk and strategic decision making; Pakistan Credit Rating Agency (PACRA) and Analytics Pvt Ltd, a leading Artificial Intelligence, Business Analytics, Big Data Analytics and Data Sciences solutions provider, will work together to develop for PBA a market-level application scorecard and income estimation model aimed at streamlining risk assessments and enabling a wider pool of applicants to access financing for their housing needs.

The consortium brings together industry-leading credit risk analytics knowledge, alongside extensive experience in Pakistan and emerging markets globally. The development and deployment of the automated income estimation & credit assessment methodology will be overseen through the PBA platform.

This project is being managed by the PBA Technology Working Group, comprising CEOs and members of Bank Alfalah, HBL and Faysal Bank as well as the CEO of PBA and a senior official of State Bank of Pakistan. This is a novel and unique project, and the first of its kind in Pakistan, where a scorecard will be developed using an alternative source of data.

The scorecard project will support the Naya Pakistan Housing Programme (NPHP), a government-backed initiative providing low-cost, affordable housing to deserving individuals in Pakistan that is expected to be a catalyst to accelerated economic activity and increased job opportunities in the region following the negative impact of Covid-19.

Mr. Tawfiq Husain, CEO, PBA stated, “We are very excited with the transformational impact this project can have on our members’ consumer lending and credit initiation and risk management capabilities. Starting with Low Cost Housing Financing, we hope to be able to put this model to use for other products in consumer lending.”

Mr. Omar Khalid, COO TASDEEQ commented: "TASDEEQ, PACRA and Analytics together bring a diverse array of expertise to the project. This synergy coupled with Creditinfo's comprehensive global experience will be vital in development of low-cost housing credit scoring and income estimation models for the existing as well as new-to-bank customers utilizing alternative data sources. We are excited to be working with PBA to provide the banks with tools for quick and accurate risk decision making and working towards a more financially inclusive Pakistan."

Mr. Samuel White, Regional Director, Creditinfo, commented on the partnership: "Our unique global experience will be complemented by the consortium partners' local market knowledge to develop a robust credit risk and affordability solution in Pakistan. The project will provide PBA members with the required tools to make accurate risk decisions on underserved segments of the population, which is fundamental to increasing access to housing finance. Creditinfo is excited to work with the PBA to support the expansion of financial inclusion in Pakistan and help drive economic activity in the region".